10 Simple Habits to Boost Your Financial Health in 2025

As we step into 2025, it’s the perfect time to take a fresh look at your finances and make positive changes that can have a lasting impact. Whether you're looking to save more, invest smarter, or simply manage your money better, developing good financial habits can set you up for long-term success. Here are 10 simple habits that can help boost your financial health in 2025:

1. Track Your Spending

Understanding where your money goes is crucial for making smarter financial decisions. Use apps like Money by Afterpay, Pocketbook, or Raiz to track your daily, weekly, and monthly spending. By identifying areas where you can cut back, you’ll free up more funds for savings and investments.

2. Set Clear Financial Goals

In Australia, many are working toward goals like saving for a house deposit, travelling, or growing their superannuation for retirement. Define specific goals and break them down into smaller, manageable steps. For example, if you're saving for a deposit under the First Home Owner Grant (FHOG) scheme, calculate how much you need and set monthly saving targets.

3. Create a Budget and Stick to It

A practical budget is key to financial health. Consider using the 50/30/20 rule:

• 50% for essentials like rent, groceries, and transport.

• 30% for lifestyle expenses like dining out or entertainment.

• 20% for savings and debt repayment.

Free tools like the ASIC MoneySmart Budget Planner can help you build a realistic budget.

4. Automate Savings

One of the easiest ways to ensure you’re saving consistently is to automate your savings. Set up automatic transfers to a separate savings account or investment fund each payday. This habit will help you save without thinking about it and ensure you're building wealth over time.

5. Build an Emergency Fund

Having an emergency fund can help you weather financial storms without resorting to credit cards or loans. Aim to save at least three to six months’ worth of living expenses in a liquid account that you can access quickly in case of an emergency.

6. Pay Yourself First

Treat savings as a non-negotiable expense by paying yourself first. Set aside a percentage of your income as soon as you're paid before covering other expenses. Consider allocating these funds into your superannuation, a savings account, or an ETF for long-term growth.

7. Limit Impulse Spending

Impulse spending is one of the biggest barriers to achieving financial goals. To combat this, create a list of what you need before heading out shopping, and avoid browsing stores or websites unnecessarily. Practicing mindful spending will help you stick to your budget and focus on your priorities. To reduce unnecessary spending, try these tips:

• Wait 24 hours before buying non-essential items.

• Stick to a shopping list, especially for groceries.

• Use tools like Finder or Shopback to compare prices and get cashback on your purchases.

8. Review Your Subscriptions

Over time, subscriptions can pile up, draining your finances without you even realizing it. Regularly review your subscriptions (streaming services, memberships, apps) and cancel any that you don’t use or need. This simple habit can free up extra money to allocate to savings or debt repayment.

9. Invest in Your Future

Investing is one of the most effective ways to grow your wealth. If you’re new to investing, start small and educate yourself on the basics of stocks, bonds, and mutual funds. Consider contributing to retirement accounts to take advantage of long-term growth opportunities.

10. Review and Adjust Your Financial Plan Regularly

Life changes quickly, and so should your financial plan. Regularly review your budget, savings, and investments to ensure they align with your goals. Adjust your budget, savings, and investment strategies accordingly to stay on track. Don’t forget to check in on your tax deductions (e.g., work-related expenses) and maximise your HECS/HELP repayments if you're paying off university debts.

By adopting these 10 simple habits, you’ll not only improve your financial health in 2025, but also lay the foundation for financial security and success in the years to come. Start small, be consistent, and watch your financial well-being grow!

By Brett Tarlington