Between last minute deadlines and looming holidays – are they here yet? – set aside some time to wrap up your finances for 2024 and plan for 2025. It pays to be proactive.
To reflect on your finances and plan ahead:
Reassess your budget:
To know where you’re heading, you need to know where you’ve been. Create a year-end budget, accounting for all your expenses and savings, areas where you could have been more frugal and what you actually spent as apposed to what you planned to spend. Was every expense necessary, have you paid off debts, did you save as much as you planned to? Once you have an accurate view of the year that was, you’ll be better equipped to budget for the year ahead.
Consider your financial goals:
Did you accomplish what you set out to achieve at the beginning of the year? No, we’re not talking new years’ resolutions which are as stable as the balloons at your festive season celebration, we’re referring to your long-term financial goals. Whether they were to pay off debt, save for a deposit on a new home, or create an emergency fund, if they haven’t been accomplished, it’s time to plan a new route to getting there. Alternatively, consider whether your financial goals have changed. If so, decide how you’ll accomplish your new dreams in the year ahead.
Review your investments:
How did your financial portfolio perform in the past year? Are the returns what you expected? Are they likely to improve in the coming year? Is your portfolio sufficiently diversified? Chat to your financial advisor to see if it’s worth revisiting any of your investments or if the long-term projections are still in line with your expectations. If your time horizon has shifted, ensure that your portfolio is aligned with this. Don’t make impulsive decisions but ensure you’re on track to being where you need to be at the end of 2025.
Check your insurance policies:
Has 2024 been a year that’s changed everything? Did you get married or divorced, fall ill, have a baby or watch with mixed emotions as your child left the nest? If any of your circumstances changed, update your insurance policies accordingly. Whether it’s home, car or life insurance or if your medical needs will be different in the year ahead, ensure you and your family are covered.
