How to Get Your Finances in Order for the New Year (So You Can Crush Those 2025 Money Goals!) 🌟💰
New year, new you – and this time, we’re making it the year we get those finances in order! 🎉 Getting your money sorted at the start of the year is like giving yourself a head start. You’ll be set up to reach your savings goals, tackle any debt, and finally feel on top of your money game. It’s all about creating small, manageable steps that will add up to big changes. Ready to make 2025 your most financially fulfilled year yet? Let’s do this!
Step 1: Reflect on Last Year’s Money Habits 💭
Before we dive into new goals, take a moment to reflect on last year. Ask yourself:
What went well? (Did you save more? Spend less?)
What could’ve gone better? (Did impulse shopping get the best of you?)
Were there any surprises in your budget? (Unexpected expenses or money wins?)
Jot down your thoughts! This little reflection exercise will give you insight into your habits and help you decide what you want to improve this year. Plus, it’s a great way to celebrate any money wins you had, no matter how small!
Step 2: Set Your Money Goals for the Year 🎯
Now for the fun part – setting goals! Think about what you really want to achieve with your money this year. Want to save for a trip? Pay down debt? Build up an emergency fund? Be specific, so you know exactly what you’re working toward.
Once you’ve got your goals, break them down into monthly or even weekly mini-goals. For example:
Big Goal: Save $5,000 by the end of the year.
Mini-Goal: Save $100 per week.
See? Bite-sized goals make the big ones feel so much more achievable!
Step 3: Create (or Update) Your Budget 💸
If you don’t have a budget, now’s the time! A budget isn’t just about restriction – it’s a roadmap that shows where your money is going and helps you prioritise your goals. Start by listing out your income and fixed expenses (like rent, bills, and insurance). Then, set a realistic limit for variable spending (groceries, going out, shopping).
We have a free budgeting tool to help you get started or take part in our money master class or you can go old-school with a notebook. The key is to check in with your budget regularly and adjust as needed. Think of it as your money bestie – it’s there to help you stay on track!
Step 4: Set Up Automatic Savings 🏦
This is one of the simplest ways to boost your savings without even thinking about it. Set up automatic transfers from your main account to a separate savings account every payday. Treat it like a bill – once it’s in savings, pretend it’s gone.
If you have multiple savings goals (like an emergency fund, holiday fund, and investment account), consider creating separate “buckets” for each. Many banks let you open multiple savings accounts with no fees, so you can keep everything organized. Watching those accounts grow is SO motivating!
Step 5: Audit Your Subscriptions & Fixed Expenses 🕵️♀️
New year, new budget – and that means cutting out anything that doesn’t spark joy (or at least, doesn’t add value). Go through your subscriptions, streaming services, memberships, and any other recurring expenses. Do you really need all five streaming services? (Maybe, but let’s be real.)
Also, check if you’re paying too much for things like your phone plan, electricity, and insurance. Sometimes, a quick comparison online can save you a lot each month. Don’t be afraid to call and negotiate a better rate – you’d be surprised how often companies will work with you to keep your business.
Step 6: Start an Emergency Fund 💖
If you don’t have an emergency fund yet, this is the year to start one! An emergency fund is like a financial safety net – it’s there to cover unexpected expenses like car repairs, medical bills, or surprise vet visits (looking at you, Lucy). Aim to save up three to six months’ worth of expenses eventually, but start small if that feels overwhelming. Even $500 can make a huge difference when you’re in a pinch.
Step 7: Review & Boost Your Income 💼
Let’s talk income! If you’re feeling like your budget is stretched, it might be time to look at ways to bring in a bit more cash. Here are some ideas:
Ask for a Raise: If you’ve been at your job for a while and know you’re a valuable team member, don’t be afraid to negotiate for a raise.
Start a Side Hustle: From freelancing to selling handmade goods, side hustles are a fab way to boost your income and add to your savings.
Sell Unused Items: Declutter and make money! List items you no longer need on eBay, Facebook Marketplace, or Depop.
Even a little extra income each month can help you reach your goals faster.
Step 8: Focus on Debt Repayment 💳
If you have debt, make 2024 the year you tackle it head-on. Start by listing out all your debts (credit cards, personal loans, Afterpay balances, etc.) and choose a repayment strategy that works for you. Popular methods include:
The Snowball Method: Pay off your smallest debt first, then move to the next. This gives you small wins early on, keeping you motivated.
The Avalanche Method: Pay off your highest-interest debt first. This saves you the most money in the long run.
Choose the strategy that feels right for you, and stick with it. Every dollar you pay off is one step closer to being debt-free!
Step 9: Schedule a Monthly Money Date 💅
Make it a habit to check in with your finances once a month. Grab a coffee (or a glass of wine!), review your budget, track your progress toward your goals, and celebrate any wins. Think of it as a “money date” – an hour dedicated to taking care of your financial future. This helps you stay accountable, spot any issues early, and make adjustments as needed.
Step 10: Be Kind to Yourself & Celebrate the Wins 🎉
Lastly, remember that money is a journey, not a sprint. Some months will be easier than others, and that’s okay! Be kind to yourself, give yourself credit for the progress you’re making, and celebrate the wins, no matter how small. Whether it’s paying off a bill, hitting a savings milestone, or sticking to your budget for the month – give yourself a high-five and a little treat. You deserve it!
Let’s Make 2025 the Year You Level Up Your Finances!
With these steps, you’ll be well on your way to feeling totally in control of your money in 2025. Start small, stay consistent, and remember – every little bit adds up. You’ve got this, money queen! 👑 Here’s to a year of financial wins, crushing goals, and feeling empowered about your money choices. Cheers to the best financial year yet! 🥂