Make a fresh start in 2025: Your financial checklist for the New Year

Moving from 2024 to 2025 presents us with more than just an opportunity to celebrate, it also gives us the chance to think about what we have learnt from the previous year and the hindsight into how we can improve in 2025.

To support you in planning for a prosperous new year we have put together a short checklist of questions to ask yourself when planning your finances in January along with some helpful questions to ask about your current situation and future goals.

Set clear financial goals

Identify and detail specific financial goals such as paying off debt, saving for a home, or planning for retirement. Write these goals down to keep them visible and break them into smaller, manageable steps to make them more achievable.

• Questions to ask yourself: What are my short-term and long-term financial goals? Are these goals realistic and achievable? What steps do I need to take to reach these goals? How would I feel if I were to achieve them? How would I feel if I wasn’t to achieve them?

Review and adjust your budget

Track your spending using apps or spreadsheets to understand where your money goes. Identify and cut unnecessary expenses, such as unused subscriptions or services. Adjust your budget to account for inflation and changes in the cost of living.

• Questions to ask yourself: Where is my money going each month? Are there any expenses I can reduce or eliminate? How can I adjust my budget to better align with my financial goals? When was the last time I used this subscription?

Build an emergency fund

Aim to save enough to cover 3-6 months of living expenses to provide a safety net for unexpected events. Automate your savings by setting up regular transfers to your emergency fund. Consider placing your emergency fund in an appropriate savings account that you can readily access if required.

• Questions to ask yourself: How much do I need in my emergency fund? Am I consistently saving towards this goal? Is my emergency fund easily accessible if I needed it?

Manage any debt

Prioritise paying off high-interest debt first, such as credit cards and personal loans. Consider consolidating your debts to lower interest rates and simplify your payments. Create a detailed repayment plan with a clear timeline to become debt-free.

• Questions to ask yourself: Which debts have the highest interest rates? Can I consolidate my debts to save on interest? What is my plan for paying off my debts, and how long will it take?

Maximise your retirement plans

Review your workplace pension plans to ensure you are contributing enough to receive any employer match if you can afford to. Aim to increase your retirement savings contributions each year. Consider additional savings options like Individual Savings Accounts (ISAs) for tax-efficient growth.

• Questions to ask yourself: Am I contributing enough to my pension to get the full employer match? Can I increase my retirement contributions this year? Are there other savings options I should consider for retirement? How much do I think I need to retire comfortably?

Review your insurances

Review your life and critical illness plans to ensure it is enough to meet the needs of you and your family.

• Questions to ask yourself: Is my current insurance coverage adequate for my needs? Do I need to adjust my health or life insurance coverage? What would I do if I was off of work due to long term sickness?

Update your will

Update your will to ensure it reflects your current wishes and circumstances. If you don’t have a will, now is the perfect time to get one in place. Review and update beneficiaries on all accounts, including pensions and life insurance policies. Consider setting up a lasting power of attorney to appoint someone to make decisions on your behalf if you become unable to do so.

• Questions to ask yourself: Is my will up to date and reflective of my current wishes? Are my beneficiaries correctly listed on all accounts? Do I need to set up a lasting power of attorney?

Plan your financial touchpoints

Conduct monthly reviews of your budget and spending to stay on track with your financial goals. Schedule an annual review with your financial adviser to get professional advice and ensure you are on the right path. Be flexible and adjust your financial plan as your circumstances change throughout the year.

• Questions to ask yourself: Am I regularly reviewing my budget and spending? When was the last time I met with my financial adviser? How have my financial circumstances changed, and do I need to adjust my plan?

By using the checklist above we believe that you can improve your 2025 financial outlook. This checklist aims to provide the building blocks you need to better understand your finances and goals – this can be further enhanced by a personalised financial plan, supported by an Adviser who will work with you to understand your needs and goals

At Schroders Personal Wealth we believe that a good financial plan can help change people’s lives, giving you and your loved one’s peace of mind. That’s why we will work with you to create a financial plan that is personalised to your own unique situation.

We have no hidden fees or charges. You only pay if you decide to proceed with the recommendations in your personalised financial plan. Before any costs are incurred, we will clearly explain the charges for the products and services you choose. This way, you can make an informed decision about which services to use. You can get started today by booking a call through our website.