It’s important to think about how the economy may have changed our lives as the year comes to a close. There was still a lot of talk about inflation, the tough housing market, and big events like federal elections and interest rate drops.
These changes have brought both problems and opportunities. Now is a great time to think about things, change your priorities, and start over with your finances so you can grow your wealth in 2025.
Get your credit score up and pay off your debts
Shirley Mueller, finance expert and founder of VA Loans Texas says: “Some kinds of debt, like school loans or a house, are “good debt,” but you should pay off your credit cards and other high-interest debts first.
One of the fastest ways to raise your credit score is to pay down your debts, especially credit card debt.
If you have a lot of debt, you might want to think about different ways to pay it off, such as the snowball or landslide method.”
Don’t forget to help others when you can
Kalim Khan, finance expert and senior partner at Affinity Law shares: “A lot of people give back, and science has shown that it can be good for your health. One of your goals for the new year should be to give back.
Giving to charity or volunteering your time, skills, and resources to help your local community are all great ways to keep paying it forward all year long.
Ask a family member or friend to help out. Giving back can be a great way to spend time with people you care about.”
Pay attention to what you eat
When you think about how food, health, and wealth are connected, the saying “you are what you eat” really hits home.
Watching what you eat is more than just counting calories; it’s also about giving your body the right nutrients.
Not only does a healthy diet improve your physical health, but it also changes the way your brain works, which directly affects your ability to make smart financial choices.Also, cooking meals at home can save you a lot of money on food costs compared to going out a lot. You can save money on healthy, tasty food by planning your meals ahead of time and cooking in bulk.
Aim for bonuses
Evie Graham, founder of Waste Direct says: “If there is a bonus motivation built into your company, you should talk to your boss about changing your goals and KPIs so that you can get the bonus first.
Once these are set, make sure you meet with your boss on a regular basis to make sure you’re on track to meet or beat goals.
Ask about project-based bonuses, stock options, and profit-sharing plans. These are all things that are becoming more popular in tech and are spreading to other fields.”
Get the most rewards
It’s easy to forget about some job perks, but when added up, they can have a big effect on your wealth accumulation.
If your health insurance plan meets or exceeds your needs, see if you can donate some of your premiums to a Health Savings Account (HSA). This account has three tax benefits: payments are tax-deductible, growth is tax-deferred, and spending is tax-free.
Also, if your workplace offers a 401(k) match, make sure you use it by giving the maximum amount or as close to the maximum amount as you can.
More work from home
It’s no secret that workers pay more when they work from home. From the cost of getting to and from work to small purchases like coffee and food (even if you bring your own), it’s hard to spend nothing on an in-office day. These little costs add up quickly.
It’s much easier to not spend any money at home. If working from home really helps you save money, you could ask to do it full-time or look for a new job that lets you work from home first. If you can, you could even move to a city or town with a cheaper cost of living.
Get help from a professional with your money
Harrison Tang, founder of Spokeo, tells us: “You could spend your whole life following the advice of online celebrities and books, but nothing beats meeting with a financial advisor one-on-one.
You can make a personalized plan, get the most out of your savings and investments, and make sure you’re saving on taxes wherever you can by talking about your life goals.
Check to see if financial planning is covered by your insurance, or get some suggestions and quotes for a fee-only meeting. At this appointment, you’ll get personalized, fair help that takes both the short and long-term into account.”
Wealth management based on digital tools
The pandemic sped up the move towards digital and virtual banking services, and this trend is expected to become more stable in 2025. Clients want digital experiences that are smooth from the time they sign up to the time they handle their accounts.
I think that the future of wealth management will depend on being able to provide easy-to-use digital tools that let clients access their financial information, get help, and make deals with little face-to-face contact.
Financial companies are likely to put a lot of money into their tech infrastructure, and more of them will start to offer a mixed model where digital self-service is joined with human help when it’s needed.
Advisors should learn about the newest financial technology tools to help ease their work and give better customer service. Regular people should also learn about these tools in order to help themselves.
