Finance Tips For The New Year

Drafting up your New Year’s resolutions? You and 27 percent of Brits, according to YouGov. The most common resolutions? Money. Of those Brits making a resolution for 2025, 29 percent will make a financial one, whether that’s trying to save money, spend less, earn more, invest more, pay off debt or manage their finances better. So where to get started with your ‘new year, new you’ money management? We asked the experts at Rathbones for their top tips on hitting your financial goals in 2025.

How To Save More Money In 2025

‘With 2025 around the corner, it is worth taking the time to take stock and lay down a few financial resolutions that may help protect and grow your finances,’ says Malvee Vaja, financial adviser at Rathbones, one of the UK’s leading wealth management companies. ‘Regardless of your situation, a new year brings a new start where we can cultivate good habits and stay on top of our finances.’

Here’s where to start.

Set Clear Financial Goals

‘A good place to start is to work out what your financial goals are, both for the short and long term,’ says Malvee. ‘Take some time to think – and discuss this with the people who are important to you – what you want your money to do for you and your loved ones.

‘Setting clear goals should help you make the most of your money and establish good financial habits,’ Malvee adds. ‘It’s also important to review your goals on a regular basis to check that you’re on track to meet them and adjust them as necessary.’

Keep A Budget

‘Budgeting goes hand-in-hand with setting and working towards your financial goals,’ Malvee shares. ‘A budget makes it easier to understand where your money is going and can help identify whether you can reduce or eliminate unnecessary expenses. Prioritise your spending and re-evaluate your level of savings, and always try to live within your means.

‘Budgeting should help you feel more in control of your finances and an emergency fund should help prepare for any unexpected bills, events or emergencies,’ Malvee adds. ‘Good budgeting should include:

• Calculating your expenses, particularly in terms of essential (mortgage/rent, food, household bills, etc) and discretionary spending (eating out, streaming services, gym membership, etc)
• Keeping your essential money and discretionary spending funds in separate bank accounts or pots
• Setting up direct debits for essential bills to go out on, or close to, pay day
• Reviewing and managing your subscriptions. Many subscriptions auto-renew, so you may be paying for services you barely use or perhaps have even forgotten about.’

Check Your Bank Statements

‘A good way to keep tabs on your expenses is to keep track of your purchases,’ Malvee recommends. ‘With online banking, and many banking apps now categorising spending, it’s easier than ever to identify non-essential spending and cut back. It’s also worth keeping in mind an estimate of your current account balance. Many of us underestimate how much we spend!’

Utilise Your ISA Allowance

‘An Individual Savings Account (ISA) is one of the most straightforward ways to achieve tax-free gains, as they shelter your savings or investments from income tax and capital gains tax (CGT),’ Malvee says. ‘However, lots of people often leave it to the end of the tax year to think about their ISA and with £20,000 able to be saved or invested tax-free per tax year many could be missing out.

‘Checking how much you have saved or invested as we enter the new year will give you four months of 2025 to put as much money as you can into your ISA,’ Malvee says. ‘Your savings or investments will benefit from the tax advantages and potential growth earlier, helping to boost returns over the long term. With new rules allowing someone to open and pay into multiple ISAs per year, you can make the most of strong cash ISA rates, whilst still investing some of your money for the long term with a stocks and shares ISA.’

Have An Up-To-Date Will

‘Although it might sound daunting, putting a will in place is one of the most important things you can do, and it’s especially important for unmarried couples, or if you have children or other family members who depend on you financially,’ Malvee points out. ‘This is a live document and one that should be revisited every couple of years. Starting this process allows you to choose who will benefit and what they will get and ensure your estate is dealt with in the way you choose. It can also help to reduce the amount of inheritance tax payable on your estate.

‘While you can start or update a will anytime of year, January is a good time to get your affairs in order coinciding with when you are making other resolutions and taking stock of your priorities for the year ahead,’ Malvee says.

Get Professional Advice

‘As many of the rules around financial planning can be quite complex, it’s usually very helpful to discuss your circumstances with a qualified financial planner,’ Malvee says. ‘They should work closely with you to understand your situation and goals, and use their knowledge and financial modelling tools to develop a financial plan that’s right for you.’

Discover more about Rathbones at rathbones.com