By Stephanie Chilton -
Are you finance-ready for 2025?
Me neither. I’m tempted to reach for another mince pie and put off thinking about it until the new year. However, I’m sure if I do that I’m likely to overspend in the next few weeks.
It’s the season for giving, right? But if you give more than you can afford you’re setting yourself up for a gloomy start to the new year.
What about luxury and overindulgence? You’ve worked hard, you deserve it. But you don’t deserve that sinking feeling come January when you just know it’s going to take months of scrimping to make up for the holiday spending.
Here’s what you need to do:
- Review and Adjust Your Budget NOW
The first step is having a clear understanding of your income, expenses, and savings. Make a simple spreadsheet or pen-and-paper list of your monthly income and expenses. Make sure you're allocating as much as you can to savings and investments. Are there any expenses you could reduce or just get rid of? - Build or Strengthen Your Emergency Fund
An emergency fund is the safety net that shields you from unexpected expenses. Aim to have three to six months' worth of living expenses saved in an easily accessible account. If you don’t have an emergency fund, start one. Start small and be consistent. It’s one of the most important steps in achieving financial security. - Pay Down Debt
If you have high-interest debt, such as credit card balances, make it a priority to pay it down as soon as possible. Reducing debt frees up money that could be better invested elsewhere. Start by paying off the highest interest-rate debts first to maximize your savings. - Invest in Your Future
Look into long-term investment options, including retirement accounts like a 401(k) or IRA. If you're already investing, review your portfolio to ensure it aligns with your goals and risk tolerance. Seek professional advice if you're unsure where to start. - Stay Informed and Adapt to Changes
The financial landscape is constantly evolving, from tax laws to investment opportunities. Stay informed by reading financial news, attending webinars, or consulting a financial advisor. Have a listen to Season 4 Episode 16 of the Mature Allure podcast to learn how to unlock financial freedom in midlife.
Thinking about your finances now means they will be forefront in your mind over the holidays. You will be less likely to overspend and ready to start the new year with clear financial goals in mind.
By taking these steps, you’ll be well on your way to a financially secure and successful 2025. See you there!
