Start the New Year with a Financial Fresh Start: Plan for a Confident 2025!

As 2025 draws near, now is the perfect time to take stock of your finances and set yourself up for success in the new year. While the holiday season might bring extra expenses, it also presents an opportunity to build better financial habits that will pay off in the long run.
Here’s how you can review, reset, and prepare to confidently tackle your finances in 2025:

Reflect on Your Financial Journey

Before you look ahead, take a moment to understand where you currently stand. This reflection is crucial for shaping a solid financial future.

• How much have you saved this year?

If you set savings goals but didn’t quite hit the mark, that’s okay. Reflect on the lessons learned and consider this a fresh opportunity to reset. If you didn’t set any goals, simply take note of how much you’ve saved and use that as your starting point for 2025.

• Where has your money gone?

Review your bank statements or use your banking app to identify trends in your spending. Are there subscriptions you no longer use? Or dining-out habits that could be scaled back? Identifying these patterns will help you pinpoint areas where you can cut back and save more effectively.

Set Clear, Achievable Goals

With a clear picture of where you stand, it’s time to think about what you want to accomplish in 2025. Setting specific, realistic goals will keep you focused and motivated throughout the year.
Consider these goal ideas to get you started:

• Build an emergency fund to cover unexpected expenses.
• Pay down high-interest debt, such as credit cards or personal loans.
• Save for a home deposit or future investment property.
• Budget for home renovations or upgrades.

To stay on track, break your big goals into smaller, manageable steps. For example, if your goal is to save $10,000 for a home deposit, aim to set aside $200 a week. Achieving these small wins will keep you motivated and moving forward.

Start Small, Think Big

Building better financial habits begins with simple, everyday actions. Ask yourself, “What small change can I commit to this week?”
Here are some ideas to consider:

• Cook more meals at home instead of dining out. It’s an easy way to save money and improve your budget.
• Use cash for discretionary spending by withdrawing a set amount each week. Once it’s gone, it’s gone—this method encourages discipline and budget adherence.
• Track your spending with apps like Frollo or Moneytree. These apps give you insight into where your money is going.
• Review your accounts weekly. Regularly checking your account balances and transactions will keep you informed and help you spot any unauthorised charges quickly.
• Pause before non-essential purchases. Try waiting 24 hours before buying anything that’s not an absolute necessity. It can help you make more mindful decisions.
• Automate savings transfers. Set up automatic transfers to your savings account as soon as you get paid, making saving a priority.
• Use tools like MoneySmart’s Budget Planner or Simple Money Manager to structure your spending plan and track progress.

By committing to just one small change this week, you can start building lasting financial habits that will set you up for success in 2025 and beyond.

Stay On Top of Your Financial Commitments

• Monitor your interest rates.
  Interest rates can fluctuate, so it’s important to regularly check your mortgage or loan terms to ensure they still align with your financial situation.
• Consider making extra repayments.
  If your budget allows, consider making small additional payments on your mortgage or loans. Even a little extra each month can reduce your overall debt and shorten the repayment period.
• Explore refinancing options.
  If your financial situation has changed, it might be time to review your home loan and explore refinancing. This could help you secure better terms and make your payments more manageable.

Make Your Financial Habits Work for You in 2025

Building better financial habits is all about taking small, consistent steps. Whether you’re saving for a rainy day, managing your spending, or creating a solid financial plan, every action brings you closer to your goals.

If your 2025 plans include buying a home, refinancing, or preparing for your next property move, we’re here to help. Together, we can work on a strategy to make your financial goals a reality.

Ready to take the next step? Contact your 1^st Street Mortgage Broker today, and let’s start planning your path to financial success in 2025!