How to manage money: A 10-step plan for 2025
Resolutions are like the crash diets of the financial world, where people make an enormous effort for a few weeks, find it too hard, give up, and go straight back to their bad habits. 6 in 10 of us make them, women are more likely to than men – 64% compared to 55%. Yet, less than 10% of people will build a habit that lasts more than a year.

Last Updated: 1 January 2003
So if you’re struggling to stick with a resolution this year, you might want to trade short-term resolutions for a more meaningful and manageable 10-step approach to transform your finances in twenty-twenty-thrive. You just need to do one thing each week to help you get financially fit. Set a weekly ‘money date’ to focus on these tips, which build on each other.
Week 1 – Set clear financial intentions
Spend some time thinking about what you’d like to achieve this year – perhaps it’s tackling your credit card debt, saving for that dream holiday, or finally starting your investment journey. Setting specific goals will not only help you stay on track, it’ll also steer your daily financial decisions in the right direction. Once you’ve made a plan, commit to taking the first step to making it happen.
Week 2 – Master your money
Review your incomings and track your spending – there are apps that can do this to the last penny. This will give you a clear picture of where your money goes and where you spend unnecessarily. Then based on your spending insights, create a smart spending plan that aligns with your goals. A popular rule of thumb is 50-60% needs e.g. rent and bills, 20-30% wants e.g. holidays and socialising, and 20% for future you e.g. savings or investing to build a better future. Building up your budget will let you see the best way you can manage this yourself.
Week 3 - Shop around to save money
The easiest way to make your budget balance and free up cash for your financial goals is to cut the cost of utilities, insurance and mobile phones.
And don’t overlook your subscriptions – signing up to those free one-month trials can catch us all out. Cancel anything you don’t use or need to free up extra cash to put towards your goals.
Week 4 – Tackle costly debt
Prioritise paying off debt with the highest interest rates first. This is often credit card debt or overdrafts, that can charge rates as high as 40%. Reducing this debt saves you money on interest and frees up cash, giving you greater financial flexibility.
Week 5 – Build your emergency fund
Start or strengthen your emergency fund – it’s your cash safety net for life’s surprises. A good target is having enough cash to cover 3-6 months of essential expenses (just the needs, not the wants) while you’re of working age, but anything is better than nothing. Even £500 is a great start and could prevent you relying on credit cards when in a pinch.
A recent financial study by HL shows that in 2025, 1 in 5 people are resolving to save more, making it this year’s most popular financial goal. Make saving a habit by building it into your budget - pay yourself first before spending on other things. Life is busy enough, so automate your savings by setting up a transfer on pay day to stay consistent. Pro tip: use separate accounts so you won’t be tempted to dip into your savings. Out of sight, out of mind.
Week 6 - Make your savings work harder
Right now, the best easy access rates are between 4.5%-5%, but to get them you’ll need to look further than your high street bank. 22% of people confess to having never switched accounts for a better interest rate, a task that is perhaps both simpler and less intimidating if you’ve already separated your savings pot from your current account. Even a small increase can grow your money faster over time, so don’t settle for less.
Week 7 – Protect you and your loved ones
Have you thought about whether you and any loved ones are insured, in case life throws you a curveball? Before committing to buying cover, check what’s provided by your employer. Many companies offer life insurance, but what about coverage for illness? Would you be able to handle your living costs if unable to work? Think about what would happen if you were to pass away too – and whether you have made a will.
Week 8 - Plan for retirement
Realising your dream retirement means planning for tomorrow – even if tomorrow is 40 years away. The two biggest factors in growing your pension pot are how much you contribute and where you invest - both these decisions are yours to make. However, 1 in 3 of us aren’t confident that we’ll be able to afford to retire. Running through a pension projection tool can help you understand if you’re on track and determine if you need to make changes.
Week 9 – Start investing
Once you have made a start on debt management and savings, you should consider investing alongside them. This can be a sensible home for money that you can afford to tie up for 5-10 years or more. Investing gives you the opportunity to outpace inflation and grow your money – the longer your timescale the greater the potential. Sheltering any investments in an ISA or a SIPP means you can also enjoy tax-efficient growth. ISA, pension and tax rules can change, and benefits depend on your circumstances.
Investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.
Week 10 – Get your diary out
Make a date each month to review your progress and celebrate your wins! Identify what worked well and what didn’t, then use these insights to refine your plan as you go through the year.
*Figures from a survey of 2,000 people by Opinium for Hargreaves Lansdown, September 2024
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