As the year winds down, before setting ambitious New Year’s resolutions or 2025 financial goals, let’s take a moment to reflect. December is the perfect time to press pause, evaluate, and look back on the financial journey you’ve navigated over the past 12 months.
Celebrating your wins, acknowledging your challenges, and learning from them can help you enter the new year with a stronger financial foundation.
So, grab your coffee (or tea), a pen and paper, or your favourite money management app, and let’s take stock of2024.
Celebrate Your Wins
Start with the good stuff.
What financial milestones did you achieve this year? Did you pay off a debt, build an emergency fund, switch your super, or achieve a major investment goal? Perhaps you successfully stuck to a regular savings or investment plan.
It’s easy to brush off achievements as "no big deal," but celebrating them matters. Psychological research consistently demonstrates the value of acknowledging personal achievements in fostering motivation and habit formation.
Write down your money wins, big or small, and share them with someone. Not only does this reinforce your success, but it might also inspire others to pursue their goals too.
Acknowledge the Challenges
This year wasn’t without hurdles. Many of us faced rising living costs driven by inflation, high interest rates, and housing pressures. Perhaps you encountered financial setbacks or decisions you wish you’d handled differently. Instead of framing them as "failures, "view them as opportunities to learn.
Did essential or discretionary spending stretch your budget resulting in stress or a lack of financial progress? Was there an investment that didn’t perform as expected? Or did an unplanned expense exceed your emergency fund?
Examine what happened with curiosity and kindness rather than judgment. Consider what caused them, what could have been done differently, and what strategies can help you navigate similar situations next year.
Review Your Cash Flow
Cash flow is the foundation of your finances, making it essential to review regularly and thoroughly. While it might feel uncomfortable, assessing your spending habits is one of the most effective ways to improve your financial health.
Dive into your bank and credit card statements or budgeting App and analyse your spending. Review: Where did my money go? Which spending categories saw consistent overspending or underspending? Were there opportunities to save more in certain areas?
If you spot patterns of unintentional spending—like late-night shopping—try to understand the triggers behind them. Were these driven by stress or a need for self-reward? Recognising these patterns can help you address them and build healthier financial habits in 2025.
On the flip side, celebrate instances of intentional spending. These reflect moments where you prioritized what truly matters, aligning with your long-term goals.
Look Ahead with Clarity
After reviewing your year, you’ll be better prepared to set meaningful goals for 2025. Start by assessing which habits are working well and what needs improvement. This could involve adjusting your investment strategy, reassessing insurance, planning for retirement, or creating a debt repayment plan.
Reflection isn’t just about looking back— it’s about using those insights to move forward. A year-end review gives you clarity, purpose, and self-awareness, enabling you to approach your finances with renewed focus.
Before the calendar flips to January 1st, take a moment to appreciate how far you’ve come or find aspects of your finances you can express gratitude for. Whether this was a year of growth, treading water, resilience, or learning, every step has prepared you for to go forward into 2025 ready to embrace the challenges and opportunities that lie ahead.
