Top 10 Financial Goals to Set for This Year 2025

 

As we step into 2025, it’s the perfect time to take control of your finances and set meaningful goals for the year ahead. Whether you're saving for a big purchase, planning for retirement, or just looking to manage your money more wisely, having clear financial goals can keep you focused and motivated. In this guide, we’ll explore the top 10 financial goals to consider setting for a successful and secure 2025.

What are financial goals?

Financial goals are targets you set for how you want to manage and grow your money. These goals are deeply personal and vary based on factors like your life stage, dreams, responsibilities, and current financial situation.

By clearly defining your goals, you can create a roadmap to help achieve them. It’s also important to regularly review your finances to stay on course.

Financial goals can range from short-term to long-term objectives.
Short-term goals might include:

• Saving for a vacation
• Paying off credit card debt
• Budgeting for a wedding

Long-term goals could involve:

• Building enough wealth to retire early
• Growing your retirement savings to a specific target
• Saving for a home deposit, which could be a short, medium, or long-term goal depending on your timeline.

1.  Review Your Financial Health

Start by taking stock of your financial picture—both what’s coming in and what’s going out.

Look at your income sources, whether it’s a job, side hustle, or other earnings. Then review your spending patterns to see where your money goes each month and identify areas for improvement.

This honest assessment will help you set practical goals, improve your budget, and make confident financial decisions in 2025.

2. Discover Simple Ways to Boost Your Savings
Once you've addressed your debt, it’s important to build an emergency fund—ideally covering three to six months' worth of income. However, a third of people in the UK have under £1,000 saved, according to the Great British Savings report.

Creating a budget is one of the most effective ways to identify potential savings opportunities. It helps you track your income and expenses, making it easier to spot areas where you can cut back.

There are many budgeting methods you can adopt, depending on what suits you best:

·         The 50-30-20 rule allocates 50% of your income to essentials, 30% to non-essentials, and 20% to savings.

·         Loud budgeting involves openly discussing your financial goals with friends and family to reduce the pressure to overspend in social situations.

·         Zero-based budgeting, a method from the 1960s, requires you to account for every pound by justifying each expense in your budget.

3 .Make Debt Repayment Your Top Financial Priority

Before focusing on other financial goals, it’s essential to prioritize paying off your debts. Start by identifying all the debts you owe and organizing them based on their urgency. If you're unsure about how to rank them, the Citizens Advice website provides useful guidance. Give top priority to debts that could put your home at risk or lead to legal action. Once those are addressed, shift your focus to high-interest debts, such as credit cards and overdrafts, which can carry steep rates—some as high as 39.9%, according to the Bank of England. To manage your debt more efficiently, consider transferring your balance to a 0% balance-transfer credit card. This strategy is especially beneficial for individuals with good credit scores, as they are more likely to qualify for the best offers.

4. Path to Living Debt-Free

Recognizing how debt influences your overall financial health is a crucial step toward achieving lasting financial security.

Carrying significant debt can lead to increased stress, tension in personal relationships, and restricted financial flexibility. It can also hurt your credit score, limit future financial opportunities, and threaten your long-term goals, including retirement planning.

To avoid these pitfalls, make it a priority to clear any existing debts—such as credit card balances, car finance, student loans, or overdraft amounts—as soon as you're able.

Doing so can help you avoid unnecessary interest and fees, giving you greater control over your finances and making it easier to manage your budget in the months ahead.

5. Cut Costs by Reviewing Bills or Changing Providers
Reaching your financial goals begins with making smarter choices about everyday expenses.

Go over your regular bills — like mortgage, energy, gas, waste services, broadband, home and life insurance, and mortgage protection — and see where you might be overpaying.

Consider switching to more affordable providers or renegotiating your current rates.

Even minor changes can add up to big savings, giving you more room in your budget to move closer to your financial targets.

6. Recover Lost Funds
As much as £90 billion in unclaimed funds is sitting idle in UK accounts, according to the tracing service Gretel. A large portion—around £65 billion—is tied up in forgotten pension pots, often misplaced when individuals change jobs or move house.

But it’s not just pensions—unclaimed money can also be found in savings and current accounts, investments, child trust funds, and premium bonds.

You can try using the My Lost Account website to locate missing savings accounts, and the government’s free Pension Tracing Service can assist in tracking down overlooked pension savings.

7. Make Saving Automatic
Automatically setting aside money is a smart way to work toward your long-term financial goals. By scheduling recurring transfers to savings accounts or investment funds, you can consistently build your future without needing to manually handle each deposit. This approach brings multiple advantages—it promotes regular saving habits and minimizes the chance of forgetting to save. In short, automating your savings keeps you financially disciplined and helps you progress steadily toward your goals, making the process simpler, more seamless, and more efficient.

8. Boost Your Pension Contributions

A lot of people underestimate how much money they'll need to retire comfortably. A useful rule of thumb is to save a percentage of your pre-tax income each month that’s equal to half your age.

So, if you’re 30, try to set aside 15% of your income. It might seem steep, but this includes both tax relief and any contributions from your employer, which helps lighten the load.

Looking to speed up your retirement savings? Take a look at our Pension Power-Up guide for expert tips and strategies.

9. Maximise Your Income Streams
Think about whether there are other ways you could boost your earnings. A simple option is renting out unused space in your home. This doesn’t mean you need to host a lodger or share your living space.

Websites like Stashbee.com let you list available space – whether it’s a full room or even just a large cupboard – along with details like location, size, and your rental price.

There are plenty of opportunities to earn a little extra money, from switching bank accounts to taking on side gigs. You can earn up to £1,000 a year in casual income under the trading allowance, but keep in mind that anything over that must be reported to HMRC.

10. Make 2025 the Year You Take Control of Your Finances. Talk to a Financial Advisor.
Connecting with a financial advisor at True Wealth is a smart move toward reaching your personal goals.

Our team specializes in offering expert guidance to help you manage the often complicated world of personal finance.

By starting today, you're setting yourself up for a future where your financial aspirations become achievable milestones.

Financial planning is essential—it’s the blueprint that helps turn your goals, like homeownership or paying for your child’s education, into reality.