Starting fresh: setting yourself up for money success in 2025

With the glitz and glamour of Christmas/New Years now well and truly in our rearview mirror, another year is officially done and dusted. For some of us, this will feel like a triumph and a milestone worth celebrating. But for others, it’s more of an “Oh God, where did the time go” sort of scenario (for the record, I’m in the latter camp).

As we ring in the New Year, it’s a great time to start thinking about where you want to be money-wise this time next year. Credit:

Both points of view are completely valid, but if you’re feeling more on the stressed side in 2025, don’t worry. The good thing about years is that when one finishes, another starts, and nothing really changes, which means you actually have plenty of time to get on top of whatever fell through the cracks last year.

What’s the problem?

From a money perspective, 2024 may well have been one of those years when plenty has fallen through the cracks, thanks to stubbornly high interest rates and the whole cost of living thing, not to mention (alleged) supermarket price-gouging. It’s little wonder, according to Finder, that nearly 20 per cent of us experienced a financial emergency in the last 12 months.

What you can do about it

If 2024 felt like a bit of a bust money-wise, here are some ways to put yourself in good stead for the new year (after cutting loose for a bit, of course):

• Do a financial pre-mortem: At the start of a new year, it can feel right to sit down and get your finances in order. However, financial therapist Jane Monica-Jones suggests going about this in a slightly different way, using your best precognitive skills to think about how you might feel this time next year. “Instead of looking back at your money mistakes, imagine it’s the end of 2025, and things didn’t go as planned,” she says. “What tripped you up? Overspending during the holidays? Forgetting about a big expense? Write those down now and think about how to sidestep them before they happen.”
• Stymie your splurging: Starting a new year with a new hobby, such as a new exercise regime or other form of self-improvement activity, is a time-honoured tradition. But, as financial adviser Victoria Vivente notes, it can be easy to let yourself get sucked into the “I need this” vortex when you begin something new, which can lead to you spending far more than intended. “If you are starting a new habit or hobby in 2025, keep things financially friendly and remember you don’t need to buy the best of everything for it right away,” she says. “Start with basics (or things you have already) and invest further once you prove to yourself that you are going to stick with it.”
• Unsubscribe and unfollow: Having just lived through the Black Friday month (remember when it used to be just one day?) I know all too well the annoyance of getting hundreds of promotional emails flooding your inbox, worsened only when you actually buy something from one of those emails. Cara Graham, adviser at The Wealth Designers, says taking the time in January to unsubscribe from as many of these emails as you can be a good way to cut costs. “Reducing exposure to marketing emails and online ads can minimise temptation and impulse spending,” Graham says. “There’s nothing wrong with buying things, but sales are designed to make us feel like we’re saving money when, in reality, we might be spending unnecessarily.” It’s also wise to take the time to reassess your selection of streaming services and other digital subscriptions and switch off any you’re no longer using.
• Find a friend: I don’t mean this just generally (though that’s always nice) but specifically a financial friend – someone you can sit down with and nut out your money troubles together, as doing it alone can feel isolating and unrewarding. This could be your partner, parent or best friend, or – if you want to get serious – a financial adviser (though it’ll cost you). Whatever approach you choose, take your time and take it easy – you don’t need to beat yourself up over it. Remember, there’s always 2026!

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.