Reviewing Your Finances In 2025 – Things To Consider

Reviewing Your Finances In 2025 – Things To Consider

Posted by Eyes of Lady Wimbledon | 1 January 2025 | Finance

If you want control over your destiny, you’ll need to exert some control over your finances. When you spend money haphazardly, you’ll need to work extra hours to earn it back again. This means that you’ll have less time and energy to allocate to the things that really matter to you.

Getting your financial life in order means coming up with a plan – and that plan will often start with a review. Since a new year has just recently rolled around, it’s a great time to assess your spending, and determine where the areas for improvement might lie.

Reassess Monthly Expenses

 

Your regular outgoings will represent the bulk of your spending. Every month, money will be extracted from your bank account, and put into the accounts of the companies that provide your electricity, gas, internet and streaming media. It’s easy to forget that this is happening. It might be that all of this money is providing you with excellent value – but it might also be that there are ongoing areas of spending that you could easily forgo. Are you paying for a gym membership that isn’t being used? How much content are you really watching on Netflix?

If you determine that you could do without a few of these subscriptions, then cutting them could save you hundreds of pounds over the course of a given year.

Evaluate Insurance Policies

 

There might be some areas of spending that you can’t do without – but which you might cut back on by simply shopping around. Car insurance, for example, is a legal requirement – but there are a number of varieties, and providers, to choose from. It could be worth looking at your car insurance if you want to bring down the cost of motoring.

Update Your Savings and Investment Goals

 

When you’re able to clearly articulate what you’re saving towards, and when you intend to meet your targets, you’ll be able able to work out how much you need to save each month. This should inform your entire strategy for savings and investments. Some bets tend to be inherently risky. A volatile asset like Bitcoin can fluctuate wildly over time, and thus it’s rarely a good investment if you want to make predictable gains. Other products, like ISAs, tend to offer a predictable return.

Plan for Long-Term Financial Stability

 

As well as thinking about your savings targets from one month to the next, you’ll also want to consider your long-term plans. When do you intend to retire, and how much will you need to save in order to make it happen? It’s also a good idea to have a cash reserve in place, in case you suffer a sudden loss of income. This applies especially to freelancers and those working in the gig economy, for whom the availability of work is not guaranteed.

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