As the new year gets underway, it’s the perfect time to set financial resolutions that can pave the way to helping you secure your financial future. Whether you’re just starting your financial journey or looking to fine-tune your strategy, focusing on the key areas of investments, savings, pensions, and protection can help you achieve your goals. Here are our 5 must do resolutions to consider for a financially sound 2025.
1. Protect Your Income
Your income is your greatest asset. Without it the bills wouldn’t be paid, the mortgage wouldn’t be paid, and the car wouldn’t be there. And there would be no luxuries like gym memberships or holidays. Without it, your lifestyle would be financially impacted. It can be easy to take your income for granted. But have a think about what would happen if an illness or injury left you unable to work. If you don’t have a plan in place to provide an alternative source of income then now is a perfect time to act. Income Protection is a type of protection policy designed to protect your income. It provides an alternative income if you are unable to work due to injury or illness. This can give you financial security while you recover.
2. Build an Emergency Fund
Before you start exploring the world of investments or other financial commitments ensure you build an emergency or “rainy day” fund, if you don’t already have one. This is a financial safety net and is essential for handling unexpected expenses. Having savings of 3 to 6 month’s worth of living expenses that are easily accessible put aside is a good goal to set. This can be done over a period of time by starting small, making this goal more achievable. Simply setting up an automatic payment to your chosen savings account can ensure that this happens. Knowing you have this fund as a safety net can provide financial peace of mind.
3. Review Your Investments
If you have an investment portfolio, make it a priority to review it. Reviewing your investments regularly is crucial for achieving your long-term investment goals. Remember that market conditions, your own personal circumstances, as well as investment performance among other factors can change over time, potentially impacting your portfolio. Book an appointment with your financial broker for a regular review to ensure your investments align with your financial objectives, risk tolerance, and time line. They help identify any possible concerns allowing you to rebalance to maintain diversification and mitigate risk. This helps you stay on track, ensuring your strategy remains effective to deliver on your goals in the future.
4. Maximize Retirement Contributions
When it comes to securing your financial future, few decisions are as important as the decision to start a pension. For many, the thought of retirement feels distant, but the reality is that the sooner you begin planning for your retirement, the better positioned you’ll be to enjoy a comfortable, stress-free life when the time comes. Once you have a plan in place you can benefit from tax relief and incentives. As you approach retirement these are increased allowing you to grow your pension at a greater rate. Remember that people are living longer these days, thanks to healthier lifestyles and advances in medical treatments so you need to make sure your money doesn’t run out, by building a bigger pension fund.
5. Review Your Protection Needs
Life is unpredictable, which makes life insurance a vital part of any financial plan. It is essential for securing the financial well-being of your loved ones in the event of your untimely passing. It provides a safety net to cover expenses like mortgage payments, daily living costs, education, and debts, ensuring your family maintains financial stability during challenging times. By planning ahead, you can minimize financial stress for your family, allowing them to focus on healing and rebuilding their lives after your passing. In a nutshell it’s a way of you looking after them when you’re no longer around to.
Next Steps
These 5 financial resolutions are set around the main financial planning product areas – protection, pensions, savings and investing. They are an excellent focus for setting the foundation for not just a successful financial year in 2025 but a secure financial future whatever your goals may be.
To get started with your resolutions just book a free, no-obligation chat with our experts where we find out a bit more about you, explain our services, and how we could work together.