The new year is a great time to break a cycle of bad habits and set some good ones.
You may be used to focusing all your attention on achieving a healthier lifestyle and forget to think about your financial wellbeing.
To help you consider what some of your new year resolutions might include this year, here’s a list of financial resolutions for a prosperous 2025 and beyond.
1. Pay off your debt
If debt is holding you back from saving as much as you’d like, prioritise debt repayment.
Expensive credit card debt can play havoc with your finances and harm your financial wellbeing.
Failing to pay off debt can also damage your credit score. This may prevent you from securing a mortgage, or at least mean you’ll find it difficult to benefit from more generous lending rates.
Make a list of the money you owe and draw up a realistic repayment plan. Start by tackling the one with the highest interest so you can start saving instead of covering the cost of expensive debt.
Read more: 5 simple ways to tackle the post-Christmas debt blues
2. Define your long-term financial goals
It’s easy to focus on the present and forget to think about the future. So, take some time to set some long-term financial plans.
This can be a good way to motivate you to stay on track with your financial resolutions and make certain that your money is working for you.
Long-term financial goals could focus on saving for retirement, a healthy deposit for a new home, or a holiday of a lifetime.
Once you’ve defined your goals, you can make solid plans for how and when you’ll reach them.
3. Prepare for the unexpected
Risk is an unavoidable part of life, especially when it comes to finances. Ill health, accidents and redundancy can all impact your financial health.
First, make sure you have an emergency fund. Ideally you should hold enough money to cover three months of expenditure in an easy-access savings account.
Next, check you have the right protection in place. If you’re the main breadwinner, consider income protection or critical illness cover. This type of insurance could help you to maintain your lifestyle if you’re unable to work due to a serious illness or an accident.
If your salary or earnings have changed, make sure your existing insurance policies are keeping pace.
Read more: How protection is the foundation of your family’s financial life
4. Start a savings habit
If you don’t already siphon some of your income into a savings or investment account each month, now’s a good time to start.
Never have money left over? Review your monthly direct debits and check you still use all the services you’re shelling out for.
Be ruthless! If you haven’t made use of something you’re paying for in the last three months, cancel the direct debit and save the money instead.
Set yourself a realistic savings goal. You’re more likely to stick to your savings habit if you’re not stretching yourself too much. Even a small amount each month can soon add up.
5. Start investing
If you aren’t already investing your hard-earned money, this should be one of your top financial resolutions.
Investing is one of the best ways to build your wealth and secure a healthy financial future. A well-diversified investment portfolio has the potential for great returns and can help you achieve your long-term financial goals.
Read more: Want to invest? Your beginner’s guide to investing
Investing can be complicated and there are different tax-saving vehicles you can use to give yourself an added advantage, so make sure you do your research. Better still, get in touch and talk to one of our expert financial planners who will help tailor your investment strategy to your circumstances and long-term lifestyle goals.
Get in touch
If you want to get your finances in shape during 2025 and would like help knowing what you should focus on and how to achieve your long-term financial goals, please get in touch.
Email info.wp@titanwh.com or call us on 0800 048 0150.
 Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
