Reaching your financial goals in 2025
Last modified: 14th January 2025
Emma Mahoney |
The cost of living crises did not go anywhere in 2024. If you were like most Aussies, the chances are you continued to feel the pinch last year. Low wage increases, higher interest rates and the rising cost of foods, goods and services made it another tough year for everyday Australians.
All of these factors meant that the average Australian had much less to spend on discretionary items like a new car, a holiday, a wedding or those home renovations you’ve been meaning to do for years!
What is predicted for 2025? Nobody can say with certainty what will happen but the general consensus is that interest rates are likely to start falling in the first half of this year, unemployment is likely to rise and we’ll have a slow grind out of inflation.
With this in mind, there is no better time to take control of your finances and set some fresh goals. Here’s our top tips for getting on top of your financial wellbeing in 2025.
1. Track your spending
We’ve all said it: “where on earth does my money go every month”. Download your bank statements and review exactly where and when you are spending your money. There are lots of Apps to help you. Check out our choices for the top Australian money Apps here.
Knowledge is power. Once you know what you’re spending, you can then proactively make changes. Look at the expenses that are likely to incur the largest price increase in the next year and do some research to snag a better deal (think: health, home and car insurance, electricity, and phone and internet providers).
2. Set some realistic goals
This might include setting a monthly or weekly budget to get on top of your expenses. Or, it might be starting to save just a little bit as an emergency fund for unexpected expenses. It could even be paying off a bit more on your personal loans or credit cards each month. It doesn't have to be huge. It can just be one small but achievable step. Whatever it is, just start. From little things, big things can grow.
3. Reconsider your ongoing subscriptions
Direct debits are easy, but you can lose track of them quickly. All of those regular subscriptions add up. Think about things like TV and music streaming services, meal delivery services and gym memberships. Consider if you’re getting your money's worth from all of them, and if you’re not, cancel them.
4. Consider consolidating your debt
If you’ve got debt in a few different places (personal loans, car loans, credit cards) consider consolidating or merging your multiple debts into one loan called a debt consolidation loan.
Remember, debt consolidation doesn't mean debt elimination. The purpose of consolidating your debt is to make managing repayments easier and to reduce your overall spending by lowering your total interest charges.
Keen to learn more about debt consolidation? Read our article on how debt consolidation works here.
5. Check your credit score
Your credit score can have a major impact on many of your financial decisions. It demonstrates your trustworthiness as a borrower and your responsibility with money. When you apply for a loan or credit card, lenders will likely use your credit score as a factor in assessing your application. Having a bad credit score can limit your options in many ways. The good news is that you can improve your credit score.
Do you know what your credit score is? You can check your credit score for free by using the Jacaranda Finance Better Credit App. It’s best to be prepared just in case you end up needing to apply for a loan.
Read more about how you can improve your credit score in our guides and articles here.
With a little bit of forward planning, you’ll be in a better position to tackle the unexpected or reach your financial goals in 2025.
Interested in a loan to achieve your goals in 2025?
Our personal and car loans are a fast finance solution for everyday working Australians! You can check if you qualify without impacting your credit score.