0:00
the start of the year is the perfect
0:01
time for a reset so here are five simple
0:04
things that could help improve your
0:05
personal finances in 2025 number one
0:08
audit your incomings and outgoings
0:10
inflation has come down in the past year
0:12
but that just means prices are going up
0:14
less quickly than they were before not
0:16
that they're coming down January is a
0:18
great time to ask yourself is there
0:19
anything I could cut back on any ways I
0:22
could enhance my income Maybe by taking
0:24
on some freelance work on the weekends
0:26
personally I've been cancelling some
0:28
subscriptions and selling some of my old
0:30
loads I've also been checking I'm still
0:31
getting the best deal on my energy
0:33
insurance and phone contract number two
0:36
make your savings work harder for you
0:39
interest rates are still pretty high by
0:40
historic levels but lots of experts
0:43
believe they're going to come down this
0:44
year interest rates feed into savings
0:46
rates so you might want to lock in a
0:48
good savings rate while they're around
0:50
you can lock in a savings rate for one
0:52
year 2 years or longer depending on when
0:55
you think you're going to need to access
0:56
the cash the good news is lower interest
0:59
rates should also make it easier to get
1:00
a mortgage it's worth using a mortgage
1:03
calculator to see how much you could
1:04
borrow and think about whether that
1:06
dream house purchase might nearly be
1:08
achievable if you've already got a
1:09
mortgage and it's expiring soon falling
1:12
interest ratees should make the process
1:13
of getting a new mortgage slightly less
1:15
painful usually people choose how long
1:17
to fix their mortgage for based on how
1:19
far and how fast they think interest
1:21
rates will fall by so that's something
1:23
to consider number three think whether
1:25
you've got enough money to start
1:26
investing if you don't have any debts
1:28
student loan and a mortgage deci side
1:30
and you've got a safety net of cash
1:32
savings industry experts usually say
1:34
this should be about 6 month worth of
1:36
spending then you might want to consider
1:38
investing some of your excess cash over
1:40
and above that over the long term
1:43
research suggests that investing is
1:44
typically delivered better returns than
1:46
cash although past performance is no
1:48
guarantee of the future using an Isa can
1:51
be a great way to invest because it
1:53
means any gains you make a taxfree there
1:55
are some really good lowcost stocks and
1:57
shares Isis available just be careful to
1:59
look at the fees and compare a few
2:01
different options before you open One
2:03
Number Four check whether your pension
2:05
is on track pensions might sound boring
2:08
but they are the thing that dictates how
2:10
comfortable or luxurious your retirement
2:12
will be or whether you can retire at all
2:15
if you've been automatically enrolled
2:16
into a workplace pension and you're only
2:18
putting in the minimum amount chances
2:20
are you're not saving enough and you
2:22
risk not having enough money to retire
2:24
comfortably the minimum amount in the UK
2:26
at the moment is 8% of qualifying
2:28
earnings but most industry experts say
2:31
you should be saving at least 12%
2:33
throughout your career to retire
2:34
comfortably you get tax relief when
2:36
saving into a pension so by ignoring
2:38
them you're basically turning down free
2:40
money plus if you're an employee some
2:43
employers will also match any additional
2:45
contributions you make into your
2:47
workplace pension if you're
2:48
self-employed don't have a pension and
2:50
you already have a good cash safety net
2:53
you might want to think about setting up
2:55
a self-invested personal pension also
2:57
called a tip the earlier you start
2:59
saving into a p pension the easier it
3:00
should be because hopefully you'll be
3:03
benefiting from investment growth it's
3:05
good to check in on how your pension is
3:06
doing at least once a year number five
3:09
set yourself goals saving investing are
3:12
so much easier when you have a goal
3:13
you're working towards setting yourself
3:15
a onee fiveyear and 10year goal can work
3:19
really well because as the saying goes
3:22
most people overestimate what they can
3:24
achieve in a year and underestimate what
3:26
they can achieve in 10 years those goals
3:28
could be anything saving for house
3:30
deposit taking a year of work to travel
3:32
or retiring early but if you're
3:34
investing make sure you have a good few
3:36
years before you're likely to hit your
3:37
goal otherwise it might be better to
3:39
save in cash here at City we're
3:41
interested in hearing how you're
3:43
resetting your personal finances this
3:44
year let us know in the comments
