3 ways to shape up your financial plan in 2025 

11 December 2024

With just a few weeks left of 2024, you might be setting new year resolutions that you believe will improve your quality of life. These might be diet-related, fitness-focused, or to do with your career.

While you’re at it, it may be useful to think about ways that you could improve, alter, or strengthen your financial plan in the new year. A complete overhaul may be unnecessary and even detrimental, but small tweaks to your strategy (and your mindset) can make all the difference over the long term.

Keep reading to discover three easy ways to shape up your financial plan in 2025, plus how a financial planner might be able to help.

1. Identify your investment philosophy

Your investment portfolio is likely to form the bedrock of your wealth later in life. If you allow your holdings to grow over a period of several years, you could have a substantial pot of wealth waiting for you when retirement arrives.

Yet for so many people, including experienced investors, the basic principles of investing go amiss – and one of these principles is your “investment philosophy”. This describes your overall attitude to, and purpose of, investing your hard-earned wealth.

A solid investment philosophy can help to inform your choices. Some elements to think about when forming yours, are:

• Time frame. This could be informed by the “why” behind your investments. Do you want to leave your assets to the next generation after you pass away? Or perhaps you’ll draw from your portfolio once you retire? Answering these questions may allow you to set a specific time frame.
• Risk. The level of risk you’re willing to adopt may inform the type of portfolio you build. If you’re looking to invest over the very long term, such as 20 to 30 years, you could be more inclined to invest in higher-risk assets. On the other hand, a shorter time frame may be conducive with a lower-risk mindset.
• Ethics. There are now more ethical investment options than ever available for those who want to align their holdings with their values. Indeed, one study from Make My Money Matter even revealed that investing in environmental, social, and governance (ESG) funds within your pension is 21 times more effective for the planet than becoming vegetarian or giving up flying. Ethical investing might form part of your overall philosophy, informing your choices when selecting funds.
• Diversification. Diversifying your assets is crucial. Even if you’re particularly interested in a certain sector, such as technology, weighting your portfolio very heavily in one asset class or geographical location could put it at unnecessary risk. Learning the importance of diversification may help you build a robust investment philosophy.

In 2025, there are bound to be events that cause market volatility – there always are – and having an investment philosophy that is personal to you could prevent you from worrying unnecessarily.

2. Form a financial checklist and work through it

When managing all aspects of your financial plan, especially if you aren’t currently taking professional advice, can be daunting.

You might have the following elements on your mind simultaneously:

• Financial protection, such as life insurance and income protection
• Your investment portfolio
• Your pension(s) and how they’re performing
• Building an emergency fund equalling between three and six months’ income
• Your State Pension forecast
• Your Lasting Powers of Attorney (LPAs) and will
• Your Income Tax, Capital Gains Tax, Dividend Tax, and Inheritance Tax liabilities
• Property matters.

With all these elements in mind, it could be worth sitting down to write a checklist that you can tick off throughout the year. Assigning yourself tasks to do with these topics could help to avoid overwhelm and give you a greater chance of keeping on top of your wealth.

Your checklist could include:

• Ensure your financial protection is still suitable for your circumstances, and contacting your provider if it is not.
• Assess the performance of your investment portfolio and outline how much you’re willing to invest in the coming year.
• Set up automatic payments into your savings account in order to build your emergency fund.
• Check your State Pension forecast and pay voluntary National Insurance contributions if you wish to qualify for the full amount.
• Register or check your LPAs and create or update your will.
• Review your tax situation and speak to a professional.

Being proactive and organised may ensure no important issues slip through the cracks.

The Financial Conduct Authority does not regulate estate planning, tax planning, Lasting Powers of Attorney, or will writing.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

3. Stay informed by listening to reputable sources

In today’s world of 24-hour media, it is unsurprising that so many people become overwhelmed and stop watching the news altogether. However, this could mean you shut yourself away from important financial news that could affect you.

On top of this, “fake news” and “deepfake” technology can be used to circulate untrue stories and imagery, some of which may worry you or even cause you to take financial action unnecessarily.

So, a helpful way to shape up your financial plan and protect your wellbeing in 2025 may be to remain informed, but only from reputable sources. For instance, blocking or muting social media “finfluencers” who offer unqualified, unregulated advice could be a great way to start.

And, if you see a headline that worries you – even from a legitimate publication – it could be worth speaking to your financial planner about solutions, rather than simply dwelling on negativity by yourself.

If you want to remain informed on financial planning topics, you might consider signing up to our monthly newsletter, in which we publish news, views, and opinions that you can trust. Just head to our home page and enter your details at the bottom of the page!

Get in touch

Managing your own wealth can be time-consuming, and if you’re looking for an expert to take some of the weight off your shoulders in 2025, get in touch.

Email info@depledgeswm.com or call 0161 8080200.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only. Please do not act based on anything you might read in this article.

Investments carry risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.