Make 2025 your best financial year yet ^Featured

Have a plan

This is an important starting point. Start by identifying what your financial goals are, both short-term and long-term. These might include the likes of changing the car, maybe a big holiday, possibly moving house in a few years’ time and eventually retirement. Be realistic about them and work out how you are going to achieve each of them in terms of saving, investing and controlling your spending. As the famous saying goes, “A goal without a plan is just a wish”.

Track your spending

This sounds so easy but in practice is difficult to do consistently. If you really want to avoid wasting money, the only place to start is by tracking what you are spending – every single euro. We’re not suggesting that you do this forever, but if you could do this for 2-3 months, you would learn so much that will make you better with money. You might be amazed how much you spend on the likes of streaming services, coffees, takeaways and mindless spending… Cut these out or reduce wastage and you’ll be surprised how much more money you will have for the things you truly value. 

Make saving the priority

We call this, paying yourself first. There’s no point saying every month, “I must start saving for a holiday / car / house”. To make it happen, you need to pay yourself first every month. Decide how much you want to save each month, and then transfer this amount out of your current account on the day you are paid each month. This way, your saving comes first. The alternative is to plan to save at the end of each month. However, what usually happens then is that your spending takes over and there’s nothing left to save, come the end of the month.  

Don’t make rash decisions

Research suggests that the pain of losing money impacts people psychologically about twice as much as the pleasure experienced when making money. This is important, as this pain leads people to make ill-considered and often costly financial decisions. Now is not the time to make knee-jerk decisions. None of us know what the markets will do tomorrow, next week or throughout 2025. So don’t try and time them by suddenly exiting (or entering) the market. Stick to the plan. 

Also, impulse buying is one of the easiest ways to blow your budget. It’s often triggered by emotions or a sudden urge to treat yourself. While it may seem harmless in the moment, these small, unplanned purchases can quickly add up. In 2025, make a conscious effort to avoid buying without due care and consideration.

Be a wiser shopper

It’s easy to fall into the trap of convenience shopping, where we buy from the same shop or service provider simply because it’s what we’ve always done. However, this habit can cost you a lot more in the long run. Shopping around for everything, from groceries to insurance policies, can save you hundreds, if not thousands, of euros each year.

Make a habit of comparing prices before making any purchase. When it comes to the likes of utilities or insurance services, don’t hesitate to renegotiate your terms or switch providers if you find a better deal elsewhere. Being proactive in seeking out the best prices ensures you’re not leaving any money on the table.

Avoid unnecessary debt

As a result of inflation over the last few years, everything has got more expensive, and even though interest rates have tapered off a little, debt should still be avoided where possible. Paying for holidays, luxury purchases and particularly day to day spending on credit cards is a very bad idea, if you are not able to pay these off in full every single month. Unnecessary debt is a recipe for financial heartache. While some debt is unavoidable – mortgages and maybe car loans come to mind, other debt should be avoided.

I hope 2025 is your best financial year yet!