7 tips to improve your financial wellness in 2025

Whether you’re looking to recover from past financial missteps, planning for big milestones such as buying a property, or simply looking to upskill your money management, 2025 offers fresh opportunities to reset and refocus.

Undertaking a ‘deep dive’ into your financial situation isn’t just about cutting back, it’s about making your money work smarter for you; here are some financial wellbeing tips to support you in refreshing your finances this year.

1. Audit your current financial situation

It’s essential to understand where you stand financially; where is your money going and what are you spending it on? What do you have in savings and how much do you set aside? Making a list of all your outgoings, as well as your total income is a good place to start:

• List all assets and liabilities: Know exactly what you own—what you have in savings, the value of any investments you have e.g. stocks and shares, and any property you own— and what you owe—how much debt you have such as credit cards, mortgage repayments etc, and any loans you have e.g. HECS, term deposits etc.
• Document all your monthly bill outgoings: Document all of your household bills and when each payment is due.
• Check your credit score: A good credit score can open doors to better financial opportunities. You can check your credit score here or via the Canstar App to understand your credit score and learn how to improve it.

2. Review your bill providers

Take a look at all of your household bills—electricity, gas, mobile, internet, streaming services etc.—and look to get the best deals possible. Regularly reviewing your bills is important to ensure you’re not overpaying for services or being charged for unnecessary items. Switching up your supplier can potentially save hundreds on your annual bills, so if you haven’t switched in a while, it can pay to compare and see if you could be getting a cheaper deal.

This step can also include reviewing larger outgoings, and for many households, one of the largest outgoings of all may be mortgage repayments. With interest rates remaining a key concern for many households, it’s essential to evaluate your home loan to ensure you’re getting the best deal.

Shop around for competitive rates or speak with your lender to negotiate better terms. Refinancing could save you thousands over the life of your loan. Even a modest reduction of just 0.5% in your interest rate can lead to substantial savings over the lifetime of your loan. Don’t forget to factor in any refinancing costs to ensure it’s worth the switch.

3. Setting financial goals—why it pays in the long-term

Whether it’s paying off debt, building an emergency fund, or saving for a big purchase or event, clear goals will keep you motivated in improving your overall financial wellbeing. Setting financial goals might not always be top of mind, but they play a crucial role in shaping your financial future.

Beyond Blue’s recent Australia’s 2024 Mental Health and Wellbeing Check also found financial pressure was the leading cause of distress for nearly half (46%) of all respondents. Distress over financial pressure was even higher for those aged 25-34 (65%), 35-44 (59%) and 45-54 (53%). And overall, women had higher than average distress from financial pressure (51%).

By setting goals, you’re better equipped to prioritise spending, saving, and investing in ways that align with your aspirations. A solid financial plan can reduce stress, improve overall well-being, and keep you focused on what truly matters.

4. Create a (realistic) budget

Creating and sticking to a budget is a cornerstone of smart money management. Whether you’re saving for a goal or simply looking to stay in control of your finances, learning how to design a personalised budget can help you track your spending and make informed decisions. It’s a habit that might take time to master, but the long-term benefits—like financial confidence and achieving your goals—are well worth it.

Much like a gruelling fitness routine, all too often budgets aren’t adhered to as they become too restrictive. Set realistic spending limits for discretionary items (such as takeout, daily coffee purchases etc) and ensure you’re putting aside money for savings and emergencies. Remember, a good budget isn’t about restriction—it’s about prioritisation. Here’s a few things to consider when making a budget (and sticking to it):

• Consider adopting the 50/30/20 rule: Some finance commentators believe that adopting the 50/30/20 budget rule—50% of your income to needs, 30% to wants, and 20% to savings and debt repayment—offers the most balanced approach when mapping out a budget.
• Take advantage of technology: Budgeting apps like Frollo, Goodbudget, or Raiz  act like personal finance trackers that can simplify budgeting and provide you with an up-to-date overview of your financial position. You may also be interested in the budgeting content provided on the Canstar App under the Wallet Wins tab.
• Create a ‘payday checklist’: Using payday (whether you’re PAYG or self-employed) to implement regular finance checks is a great way to get into the habit of monitoring your money. As well as understanding what’s coming in and out each pay cycle, a regular checklist of small actions that contribute to your overall financial goals can help prevent unnecessary spending.

5. Prioritise repaying debts

High-interest debt, such as credit card balances, can be a significant financial drain—especially if your financial goals are to increase your savings and improve your overall financial position. As of June 30 2024, the latest ASIC statistics revealed that while credit card debt overall has decreased significantly over the last five years, Australia still has over $32.9 billion dollars in outstanding card debt, and credit card holders grappled with a total of $293 million dollars in interest charges.

Paying off debts should be a priority for any budget. There are a few strategies you could use to tackle this head-on in 2025:

• Focus on high-interest debts first: Use the avalanche method to pay off the most expensive debts while making minimum payments on others.
• Consider debt consolidation: If you’re juggling multiple debts, consider consolidating them into one loan with a lower interest rate. This can simplify your repayments and potentially reduce the overall cost of your debt. Just make sure you understand the terms and conditions (which can be found in the Product Disclosure Statement (PDS)) and avoid taking on additional debt.
• Look into a balance transfer credit card: A balance transfer credit card can allow you to transfer the balance of a credit card or multiple cards into one. These types of cards typically come with introductory offers of low or even no interest for a limited time to help pay your balance off, to help make payments more manageable, although you’ll typically have to pay fees, and the interest rate will likely increase after this initial period.

6. Find and consolidate lost superannuation

According to the ATO’s latest data, while 78% of Australians have only one superannuation account, around four million Australians still hold two, and a further 4% of the population have three or more. Having more than one super account means you are likely paying extra fees and charges on every additional account in your name, ultimately reducing your overall retirement income.

Using the myGov app, you can use the ATO service to see your current fund details and its balance, see any funds you may have forgotten about, and transfer and consolidate your super into one account. If you are looking to consolidate your super funds, it’s well worth researching and comparing the best super fund for you.

7. Regularly Review Your Progress

Schedule regular financial check-ins to assess your progress and adjust your progress as needed. This habit will help you stay on track and maintain momentum.

Refreshing your finances in 2025 doesn’t have to be overwhelming. By taking small, consistent steps, you can build a stronger financial foundation and achieve your goals. Start today, and make 2025 your most financially empowered year yet.

Cover image source: PeopleImages.com – Yuri A/Shutterstock.com