The new year is the perfect time to hit refresh on your financial goals and set yourself up for a successful year ahead. Whether you’re looking to build wealth, reduce debt, or plan for the future – setting clear and actionable financial resolutions can make all the difference.
Let 2025 be the year you take charge of your finances and pave the way for long-term success by committing to these financial resolutions:
1. Master your budget
A strong financial foundation begins with a clear understanding of your income and expenses. Start by reviewing your budget to identify areas where you can cut back without sacrificing your quality of life. You can use budgeting apps or spreadsheets to track your spending, ensuring to allocate funds toward your savings and investments. A good rule of thumb is the 50/30/20 rule: allocate 50% of your income to essentials, 30% to discretionary spending, and 20% to savings and extra debt repayments.
2. Build your emergency fund
Life is unpredictable, and having a financial safety net is crucial. Aim to have 3-6 months’ worth of living expenses saved in an easily accessible account. If you’ve already established an emergency fund, reassess its adequacy. Factors like inflation, increased living costs, or changes in your family situation might mean you need to increase your savings buffer.
3. Evaluate your investment strategy
Growing your wealth involves more than just saving; it requires strategic investing. You need have a place to put your savings so that they can build up over time. Understand where you are investing and review your current investment portfolio to ensure it aligns with your goals and risk tolerance. Diversify your assets with a mix of high-quality options such as Australian equities, international shares, fixed interest, or property and infrastructure investments. If investing feels overwhelming, consult a financial adviser to develop a tailored strategy that works for you.
4. Maximise your superannuation
Your superannuation is key to a comfortable retirement, so make it a priority. Check your super balance and investment option and review the performance. Consider making additional concessional contributions to boost your retirement savings while benefiting from tax advantages. Additionally, use the MyGov platform to search for any lost super accounts and consolidate them to avoid unnecessary fees.
5. Tackle your debt
Debt can weigh heavily on your financial wellbeing, so it should be a focus to lighten the load where you can. Start by identifying high-interest debt such as credit cards and personal loans to pay down as a priority. The next step is to pay down any non-deductible debt, to a 50% LVR. Consider consolidating debts or refinancing your loans to lower interest rates to help accelerate your debt-free journey.
6. Assess any insurance policies
Insurance is your financial safety net, so ensure it’s up to date and comprehensive. Assess your coverage to ensure it is adequate for life, health, home, and income protection insurance. Shop around for competitive rates or benefits and consider bundling policies for discounts. As your life circumstances evolve such as buying a home or welcoming a new family member—adjust your policies accordingly.
7. Establish (or review) your estate planning
Estate planning is all about protecting your loved ones and ensuring your wishes are honoured. Make sure your Will is current and accurately reflects your wishes (including your substitutes as well as the guardians and age of entitlement for your children). Review beneficiaries for your superannuation and insurance policies to ensure they align with your intentions. Consider establishing an Enduring Power of Attorney and Enduring Guardianship documents to make financial and lifestyle decisions on your behalf if you are unable to.
8. Plan for major life goals
Whether you’re saving for a wedding, a home deposit, renovations, or your dream holiday, planning is key. Sit down and map out your priorities, break down your goals into achievable milestones and create a timeline to stay on track. Discuss finances with your partner regularly and agree on how you’ll manage joint expenses and savings goals to stay on the same page and build a strong financial partnership.
9. Minimise your tax
Paying less tax (legally) can free up funds for your financial goals. Maximise deductions by keeping detailed records of work-related expenses, charitable donations, and investment costs. Ensure your records are kept accurate and up to date for the next tax season. Consider prepaying expenses or contributing to your super to lower your taxable income. Consulting a tax professional can help you identify additional opportunities to reduce your tax burden and avoid costly mistakes.
10. Prioritise your financial education
Knowledge is power when it comes to your finances. Make 2025 the year you commit to learning about financial topics like investing, market trends, or retirement planning by reading books, or subscribing to trusted financial newsletters. Equally important is teaching your children the value of money, budgeting, and saving. Involving them in everyday financial decisions (talking about what you are buying, for how much and why), or encouraging them to save some money to learn about interest and delayed gratification, can instil healthy financial habits early.
Setting financial resolutions at the start of the year is an empowering step toward building a secure and prosperous future. By focusing on these ten goals —ranging from optimising your budget and superannuation to planning for major life milestones—you can take control of your financial success. Remember, small, consistent actions often yield the biggest results. If you’re unsure where to start or need personalised guidance, consider consulting a financial adviser. Make 2025 the year you achieve your financial aspirations and financial and set a solid foundation for years to come.
This article was first published in issue 13 of Personal Wealth Adviser.
Prue Cheeseman is a financial adviser of HLB Mann Judd Wealth Management (NSW) Pty Ltd (AFSL 526052) ABN 65 106 772 696. This article contains general advice which does not consider your particular circumstances. You should seek advice from HLB Mann Judd Wealth Management (NSW) who can consider if the strategies and products are right for you.