Four ways to fast-track your finances before 2025

That time of year is almost here. New goals will be set with enthusiasm, and just weeks later, abandoned with despair. Maybe at this point you’ve disappointed yourself so many times, you’re scared to even set new goals.

Having helped hundreds of people reach and surpass their financial goals, I have a few insights into what works and what doesn’t when it comes to setting and achieving financial goals.

Credit: Simon Letch

I find that many people overcomplicate financial goals. You want to save more – so you think you need to draw up a complicated budget, collect receipts, track every dollar, hunt for bargains, meal prep, and cut coffees.

You intend to start investing – so you think you need to study Warren Buffett, learn to pick stocks and day-trade, listen to podcasts about crypto, flip properties, and time the market.

But it doesn’t have to be that complicated. In fact, you can fast-track progress towards your 2025 financial goals in the next three weeks before the new year even starts. Here’s what to focus on to set yourself up for financial success in the new year:

You don’t need to wait for January 1 for a ‘fresh start’ or to start taking your financial goals seriously.

1. Create a streamlined savings system

For the love of Santa, throw away that ugly budget that never actually works. Instead, streamline your cashflow, so that incoming cash is automatically allocated to predetermined destinations (e.g. saving, spending, investments) in predetermined amounts.

This will allow you to save money on autopilot every month, without worrying about collecting pennies.

2. Optimise your superannuation fund, portfolio and contributions

If your super is in the default portfolio, if it’s in an underperforming fund, or if you’re overpaying in fees, you are probably leaving at least $100,000 plus on the table over your lifetime.

You want to look for a portfolio that has an asset allocation aligned with your investment goals (e.g. if you’re younger, you might want a portfolio that is more growth oriented). You should also consider making additional contributions to take advantage of the tax benefits of super.

3. Get some personal insurance

Personal insurance ensure that if you lose your income due to death, disability, or chronic illness, you have some financial back-up that can kick in. Remember that until your investments can cover your expenses, your ability to work and earn an income is your most important asset.

Many people assume this would be covered by health insurance. Health insurance covers only a limited range of medical costs. In the event of a chronic illness (like cancer), or a disability (like loss of vision), you may have costs that are not medical, and therefore not covered by health insurance.

For instance, you might need extended time off work and therefore need money for ongoing living expenses, or you might want alternative treatments or need in-home care.

4. Open an investment account for ETFs or index funds

Today, there are investment options like robo-advisers and micro-investing apps that are low-maintenance (i.e. time-friendly), don’t need lots of money to start (i.e. budget-friendly), and diversify risk with minimal effort.

You can get started in a single weekend with less than a hundred dollars. This move alone can make a significant impact on your financial future.

Is it scary? Maybe. But the goal isn’t to grow your money right away. The goal is to push past your fear and start. The thing that holds people back from investing for decades is the fear of starting.

Once you start, you’ve set the ball rolling. Then, it is simply a process of continuing to learn and improving over time. But for that, you have to actually start.

You don’t need a fancy vision board. You don’t need to summon superhuman motivation to change your lifestyle at the stroke of midnight. You don’t need a complicated 50-point plan. You need to focus on the handful of steps that move the needle.

If all you did was get started on the four steps above in the next three weeks, you would have made the biggest, most impactful financial moves before the year even ends.

So, you don’t need to wait for January 1 for a “fresh start” or to take your financial goals seriously. You can start today and ring in the new year already ahead of the game.

Paridhi Jain is founder of SkilledSmart, which helps adults learn to manage, save and invest money through financial education courses and classes.

• Advice given in this article is general in nature and 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.

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