As we enter a new year many of us are reevaluating our priorities and setting goals to make it the best yet. While health and fitness are common resolutions, we’re keen to emphasise the importance of focusing on financial health to achieve long-term stability and peace of mind.

Here are our top financial resolutions to help you start the year on the right track:

Budgeting

Creating or updating a budget is a crucial step toward financial clarity. We recommend the 50/30/20 rule, allocating 50% of income to needs, 30% to wants, and 20% to savings.

Building a safety net

The pandemic underscored the importance of having an emergency fund. As financial planners, we would always suggest saving at least three to six months’ worth of living expenses in a high-yield savings account. Unexpected expenses are a part of life and an emergency account can be a lifesaver.

Tackling debt

For many, paying off debt remains a top priority. The snowball method—paying off smaller debts first—or the avalanche method—targeting high-interest debts—are popular strategies. With high interest rates, reducing debt can free up money for other goals.

Organise and maximise your pension and retirement provisions

The new year is a good time to revisit retirement plans. Get all your pensions together to understand where you’re at and ensure you’re contributing enough. With new contribution limits in 2025, there are even more opportunities to grow your retirement funds.

Cutting back on unnecessary expenses

From unused subscriptions to impulse buys, cutting back on frivolous spending can make a big difference. Review bank statements and consider tools that track and highlight wasteful expenses.

Setting clear financial goals

Whether saving for a home, planning a holiday, or building wealth, setting realistic goals can help you stay motivated and focused.

Tax-year end planning

The 5th of April will come around in no time so before then make sure you utilise all your annual allowances such as pensions, ISA/LISAs, capital gains tax, and gifts.

Giving back

Philanthropy and financial health often go hand-in-hand. Consider leaving money to charity in your will. Or you could support our Community Foundation and help us give back to more charities locally. Using platforms like Easyfundraising you can donate through everyday purchases, or you can contribute directly via the Kindlink online donation portal.

As 2025 begins, just small steps can lead to significant progress over time. With clear goals, a well-thought-out plan, and consistent effort, anyone can make this the year they achieve financial goals. As ever, if you have any questions about the above, or we can be of help in any way, please email us at info@ssfs.co.uk