The year 2025 is just a few weeks away, and you might already be considering what resolutions you’d like to set for the 12 months ahead.
Though many new year resolutions tend to focus on improving health and fitness, Forbes has found that in 2024 around one-third of people set themselves a financial new year resolution. So, if 2025 is the year you want to get your finances in order, read on for five helpful financial resolutions you could set this January.
1. Pay down expensive debts
If you have expensive debts – such as credit card debt or car finance loans – the interest you pay on them might outstrip the growth of your savings or investments. Over time, this can eat into your wealth and make it more difficult to achieve your long-term goals.
So, if you have debts that you’re paying off, it may be beneficial to see if you could overpay and reduce the amount of interest charged on the loan over the course of your contract.
2. Stick to a budget
A budget is a useful tool for living within your means and ensuring you save enough each month to start working towards your long-term goals. But over time, you may need to amend your budget as a result of changes to your circumstances and the rising cost of living.
If you don’t review your budget regularly, you could accidentally overspend, making it difficult to save as much as you would like towards your goals. Equally, you could find that you delay achieving your lifestyle goals if you underestimate how much you are able to spend on yourself and your lifestyle.
Your planner can help you to create a realistic budget that enables you to enjoy today while also making sensible decisions for your financial future.
3. Protect your income and create valuable peace of mind for your family
Though growing your investments and savings is one way to work towards your goals, another frequently overlooked factor at play is protecting your income.
Consider how you and your family might cope financially if you were unable to work due to an illness or injury. Perhaps you would need to use your savings to pay everyday bills and expenses or pause your pension contributions until you return to work.
This could hinder your ability to achieve your long-term goals by depleting some of the wealth you have accumulated. So, this year, it may be a good idea to prioritise planning for these eventualities. Your planner can help you to consider the different types of financial protection available so that you can identify the most suitable package for you and your family.
By having financial protection in place, you can enjoy peace of mind that an illness or injury needn’t have a negative impact on your family’s financial wellbeing.
4. Start talking to your family and loved ones about money
Money and inheritance are two subjects that many find uncomfortable to discuss with friends and family, but avoiding these conversations can create bigger problems later on. Discussing your plans and wishes for the future can help your family to support you and enable them to create an effective financial plan of their own.
If you’re guilty of shying away from financial matters, this year you could set yourself the goal of being more open about money with your loved ones. If this feels like a big step, it might be easiest to start small. A conversation with your spouse about when you’d like to retire, perhaps, and how you’d like to spend your post-work years.
Your planner can be a helpful resource for this, giving you tips and tricks for approaching these chats. They could even be present for the conversation if you think this could help you to approach more sensitive subjects.
Read more: Should your adult children join your financial planning meetings?
5. Make your estate plan a priority
As an expat, estate planning can sometimes have an added layer of complexity if you have family living in other countries or own assets in different jurisdictions. Though Inheritance Tax has been abolished in Singapore, depending on your tax status in your home country, you may need to factor tax planning into your succession plan.
If you don’t yet have plans in place for passing on your assets after you die, 2025 might be a good year to consider this. Your planner can help you to navigate the complexities of succession planning as an expat, so that you can feel reassured that your estate will be distributed according to your wishes.
Your planner can help to keep you on track with your resolutions and goals
If you wanted to focus on health and fitness in your new year resolutions, you might decide to work with a personal trainer or a nutritionist to keep you on track. For financial resolutions, your planner can provide helpful guidance and support to keep you on track for your goals.
They could help by:
- Holding regular meetings to review your progress with you
- Acting as a sounding board when you’re feeling overwhelmed
- Creating a bespoke plan that gears your financial habits towards reaching your goals
- Providing information about stock market movements and economic factors that could affect your wealth.
To find out more, please reach out today.
