Paul's Tips: Master your 2025 money goals

"New year. New me." If that sounds like you, you're not alone. 

Research by Finder shows that 85% of Australians set a financial goal for 2025. Saving more money (52%), spending less (32%), reducing expenses (24%) and investing more (17%) are among the top financial goals Aussies are aiming for this year, according to Finder,

These are all worthwhile goals. And there's no doubt that for inflation-weary Australians, a new year presents an opportunity to develop sound financial habits to beat the cost of living challenge. 

The catch is that traditionally, many of these goals will have withered on the vine by the end of January. 

With that sort of success rate, it's time for a fresh approach. 

Here are five ways to stick with resolutions and make your money work harder in 2025: 

1. Be specific 

Goals like "I want to save more" sound good on paper but often fail because they don't involve a clear target. 

The solution is to set specific goals that you can achieve - like aiming to invest an extra $50 each month, or an additional $100 each quarter. 

It's not the amount that matters. What's important is that you set a clear benchmark.  

This way you have something concrete to work towards. 

2. Be realistic 

One thing I love about the summer holidays is that it leaves us refreshed and revitalised.  

However, this renewed sense of optimism can also filter through to our financial goals. And nothing sees us walk away from goals faster than failing to reach first base.  

And it can easily happen when we set targets we have no hope of consistently meeting. 

It's great to aim to invest, say, $200 each month. But if your budget shows you can realistically only manage $100 per month, then go with the lower figure.  

Better to tick off a sure-but-steady goal than to abandon grand plans that were never going to happen. 

3. Turn goals into action 

No one achieves a goal without a plan of action - and the commitment to follow it through. 

Fortunately, technology makes it a lot easier to stick with some financial goals.  

InvestSMART, for example, lets you automate regular contributions with ongoing transfers debited from your bank account. 

This puts reaching your investment goals on autopilot. Brilliant! 

4. Review and reward your progress 

I'm a big fan of giving ourselves a pat on the back when we reach personal financial goals.  

A simple reward for a job well done doesn't have to mean blowing the progress you've made to date. 

A treat of dining out for the night can be a great way to celebrate small achievements and help you stay on track. After all, we all thrive on being rewarded for good progress. 

5. Remember, long-term progress isn't always linear 

Growth assets like property, shares and exchange-traded funds (ETFs) that invest in shares typically deliver their best results over the long term - that's around five to seven years.  

However, the value of your investments won't always rise in an uninterrupted path.  

As I write, Aussie shares have gained over 12% in the past 12 months. Add in dividends, and the total return is closer to 16.5%.  

But growth investments, be that shares, property, ETFs or our super, don't always head north. Over the long term, you can expect periods of low gains or even negative returns. 

This may not happen in 2025, or even next year, but if your 2025 goal is to build long-term wealth, chances are you'll hit a downturn at some stage. 

When that happens, the simplest course of action is to sit tight. It sounds easy, but it can be a lot harder when markets are taking a dip in the red. 

The thing is, history shows that investment markets go on to recover from downturns. Selling out, on the other hand, can mean making a certain loss and missing out on future upswings.  

Where to from here?

If you're keen to set money goals for 2025, the first step is to decide what matters to you most - be it growing savings, paying down debt, building an investment portfolio, or adding to your super.       

Next, look at your budget to see what you can realistically afford to dedicate to this goal. Then take steps to make it happen. 

Check your progress through the year to see if you're getting closer to your goal, and celebrate small wins.   

It can be extremely rewarding - both personally and financially, when you reach December knowing you've stayed on track with those New Year goals throughout the whole year.   

Ready to start investing? InvestSMART has a range of diversified portfolios that all come with a capped management fee. If you'd like help selecting the right style of portfolio for you check out our free statement of advice quiz. It will show you which InvestSMART ETF portfolio may best suit your goals and investment timeframe.