Discover the habits to break and build for your best financial year yet.
4 min read
As we step into the new year, it’s time to shake off outdated money habits and embrace a fresh approach to finances. Forget the pressure of keeping up with others — this year is all about focusing on what you have, building financial boundaries, and setting your own goals. So, if you’re looking to redefine your relationship with money and set yourself up for success, dive in and discover what’s in (and what’s out) for your finances in 2025.
What’s out: comparing your bank balance to others
It’s time to stop treating money like a competitive sport. In today’s social media-fueled world, it's all too easy to compare every financial milestone, or perceived milestone, to those shared by others. But that curated feed only shows a small, often airbrushed slice of reality. By comparing ourselves to others, we often end up measuring our financial success with someone else’s ruler, which is just a shortcut to feeling inadequate.
What’s in: focusing on what you have
In 2025, opt instead for a financial mindset that’s less about what’s missing and more about what’s already in your corner. Rather than fixating on what others have, start by focusing on your financial wins, however small they may seem. Did you save a little more than last year? Contribute to an emergency fund? Or perhaps you paid off some debt? Then celebrate that progress! Taking stock of what you have isn’t just practical, it’s a powerful reminder that our financial journeys are unique to each of us and are rarely a straight path.
What’s out: blowing your budget on social expectations
You’re out with friends, and someone suggests going to a pricey cocktail bar. You know it’s more than you’d like to spend because you’re saving for something bigger, like a down payment or some debt repayments. But saying “no” feels tough, and the fear of missing out can be a powerful force. However, spending for the sake of “keeping up” ultimately puts long-term goals at risk, turning moments of fun into future stress.
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What’s in: communicating your financial boundaries
Instead, make 2025 the year of “loud budgeting,” a movement that champions openly sharing your financial priorities with friends and family. True friends won’t mind if you skip a pricey dinner, they might even welcome budget-friendly plans like movie nights, or potlucks. Plus, by setting these boundaries, you’re taking charge of your finances and bringing intention to your social life.
What’s out: worrying about what you can’t change
In uncertain times, it's easy to fixate on everything that feels wrong with the world, from inflation spikes to market downturns. But constantly worrying about economic realities outside your control only adds to stress, with little benefit. Our instinct to worry often comes from a desire to control every outcome, hoping it will somehow shield us from surprises. Yet, the harder we try to control what’s beyond our reach, the more anxious we tend to feel.
What’s in: taking control of what you can
Rather than spending your energy on what you can’t change, it’s worth shifting that focus to something more empowering. Start by observing what triggers you to make any unplanned purchases. Maybe it’s a “quick look” at a sale, or scrolling through social media after a long day. Then zero in on small, actionable steps that can make a real difference, like deleting saved payment details from online stores or unsubscribing from retail newsletters.
What’s out: ignoring your long-term future
Retirement might seem far off, but that doesn’t mean it’s wise to ignore it. Many avoid thinking about their pensions due to the seemingly endless and complex jargon which can make it feel overwhelming. Additionally, there’s often an underlying anxiety about aging and the changes it brings, which leads many to avoid planning altogether. But, postponing such decisions only makes it harder to prepare for a secure future.
What’s in: making future-you a financial priority
Building a retirement nest egg might seem daunting, especially if you’re just starting out. But even small, regular contributions can make a significant impact over time. Think of it as “paying yourself first,” just like any other priority bill. Starting with even a modest amount, like €50 or €100 a month can get you into the habit of saving and sets the wheels in motion for long-term financial health. As you build up this habit, you’ll begin to feel more in control and confident about your future. Remember, every small contribution is a step toward the financial security you deserve, and that’s worth the effort.
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