Turning the Page: Smart Financial Moves for Year-End and Beyond December 26, 2024
As the year comes to a close, it’s natural to reflect on your accomplishments and look ahead to the opportunities a new year can bring. When it comes to finances, it is especially good to end this year with purpose and start the new year with a strong foundation . Here is a step-by-step guide to wrapping up 2024 and starting 2025 with clarity, focus, and discipline:
1. Reflect on Your 2024 Financial Goals
Start by revisiting the goals you set at the beginning of the year. Reflect on your achievements, consider whether you met your savings targets, stayed within your budget, or managed unexpected expenses effectively. An honest self-assessment allows you to celebrate your wins and identify areas for improvement. Rather than dwell on the disappointments, focus on understanding the strategies that supported your progress and pinpoint where adjustments are needed for the future.
2. Review Your Financial Health
After making your honest self-assessment, conduct a comprehensive financial health check. Update your net worth statement to evaluate the progress you have made towards wealth building. Review any outstanding debts, and evaluate whether your repayment strategies are effective. Examine your investment portfolio to ensure it aligns with your risk tolerance and long-term goals, and verify that your insurance coverage adequately meets your current needs.
3. Maximise Year-End Opportunities
Before the clock strikes midnight on 31 December, consider maximising year-end financial opportunities. Contributing to retirement funds such as your CPF, can help reduce your taxable income, while exploring other tax reliefs options, like the SRS, could lead to additional tax savings. If you are inclined to help a good cause, charitable donations can offer both a sense of fulfillment and potential tax benefits.
4. Set SMART Financial Goals for 2025
Looking ahead to 2025, set clear and actionable financial goals using the SMART framework: Specific, Measurable, Achievable, Relevant, and Time-bound. Break these into short-term (3–6 months), mid-term (1–3 years), and long-term (5+ years) targets to maintain focus and motivation.
For example, you might aim to save S$10,000 in an emergency fund by mid-year, pay off a specific debt within 18 months, or allocate 20% of your income to investments.
5. Create a Monthly Budget and Automation Plan
The start of the year is an excellent time to overhaul or strengthen your budgeting system. Consider using the 50/30/20 rule (50% for needs, 30% for wants, 20% for savings or debt repayment) or any method that aligns with your lifestyle. Automate your savings and bill payments to maintain consistency and minimal effort.
6. Build Financial Habits to Stay Disciplined
Effective financial planning is more about consistency than perfection. Dedicate time each week to review your spending and track your progress, making additional adjustments if required. Share your goals with a trusted accountability partner or coach who can offer support and encouragement. To stay informed, commit to continuous learning—whether it is by reading a book, listening to a podcast, or attending a workshop each month.
7. Prepare for the Unexpected
If 2024 has taught us anything, it is the importance of resilience. Build an emergency fund if you don’t already have one, review your health and life insurance policies, and prepare for contingencies such as economic downturns or personal emergencies.
8. Celebrate Small Wins
Progress deserves recognition! Whether it is a small treat or a simple acknowledgment of how far you have come, celebrating small wins can keep you motivated for the larger part of the journey ahead.
9. Seek Professional Guidance
If your financial situation has become more complex, consider consulting a financial advisor or a finance coach. They can help you refine your strategy, address challenges, and identify opportunities you may have overlooked.
10. Visualise Your 2025 Financial Success
Lastly, create a clear vision of where you want to be financially by the end of 2025. Visualise the milestones and remind yourself why these goals are important to you. A strong “why” serves as the foundation for maintaining discipline throughout the year.
The Road Ahead
Financial planning is a journey, not a destination. By closing 2024 with purpose and beginning 2025 with actionable goals, you will set yourself up for a year of growth, stability, and success. Remember, consistency outweighs intensity—small, disciplined actions can compound into significant achievements over time.
Here’s to making 2025 your best financial year yet!
Contributor:
Simon Foo
Financial Services Associate Director
Phillip Securities Pte Ltd (A member of PhillipCapital)
https://bit.ly/TTPsimonfoo
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About the author
Simon Foo
Financial Services Associate Director
Phillip Securities Pte Ltd
Simon is a financial practitioner at Phillip Securities Pte Ltd with more than a decade of experience. He graduated from Nanyang Technological University with Honours and is a Certified Financial Planner.
With a passion for empowering individuals to achieve their long-term financial goals, he is highly sought for his ability in crafting personalized solutions tailored to each client's unique needs. His main specialisation is guiding individuals towards a secure retirement and financial freedom. He has served more than 200 families to date.
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