New Year ... New You and Your Money
The New Year is the perfect time to hit reset on your finances. With just a few simple tweaks and some thoughtful planning, you can take control of your money. Below are some practical, achievable tips to help you get started saving more and setting yourself up for success in 2025 and beyond.
We all know the saying - "Remember: Take care of the pennies, and the pounds (or cents and dollars!) will take care of themselves."
Audit Your Subscriptions
Have you ever checked your phone bill or bank statement and wondered, "Wait, what's this charge for?" Subscriptions have a way of sneaking into our lives and sticking around longer than we realise. From apps you never use to streaming services you've forgotten about, those small charges can add up quickly.
How to review your subscriptions:
For Android users: Open the Play Store, tap the menu in the top-right corner, select your account, and then click on Subscriptions.
For Apple users: Go to Settings, tap your Apple ID at the top, and select Subscriptions.
Once you've found your active subscriptions, ask yourself:
Am I still using this?
Does it bring me value?
Could I live without it?
Cancel anything that’s not worth the cost. And while you’re at it, think about those streaming services. Do you really need Netflix, Prime, Neon, and Disney+? Cutting back on even one could save you a tidy sum each month.
Tying this approach to business success, auditing subscriptions is just as important for businesses as it is for personal finances. Many companies sign up for tools, apps, or services that were useful at one point but no longer provide value. By reviewing your business subscriptions, you can identify unnecessary expenses and reallocate those funds to areas that drive growth—like marketing, staff development, or improving customer experiences. For instance, do you still need that premium plan for a tool you barely use, or would the free version suffice? Cutting back on redundant services not only saves money but also ensures your business resources are aligned with its goals, setting you up for a more efficient and profitable 2025.
Set a Money Goal
The best way to make progress - whether in business or personal finances - is to have a clear target. Think about one financial goal you’d like to achieve in 2025. It could be building an emergency fund, paying off a credit card, upgrading your business equipment, or saving for a dream holiday. A well-defined goal gives you focus, motivation, and a tangible measure of success.
For business owners, this could look like setting a profit margin target, planning to pay down debt, or saving for a future investment like hiring a team member or expanding your services.
Break it down into actionable steps:
Set a clear target: Decide how much you want to save, invest, or pay off. For businesses, this could also include revenue goals or reducing unnecessary expenses.
Divide into manageable amounts: Break the total into monthly or weekly chunks to make it less overwhelming.
Track your progress: Use a budgeting app, accounting software, or a simple spreadsheet to stay on top of it. For business finances, tools like Xero or QuickBooks can help simplify tracking.
Keep the “why” in sight: Visualize what achieving this goal would mean—a secure cash buffer for unexpected expenses, peace of mind from less debt, or the ability to reinvest in your business. Knowing your "why" will help you stay on course.
Pro Tip: Share your goal with your team or family to stay accountable, and celebrate milestones along the way to keep motivation high.
Create (or Refresh) Your Budget
A budget, whether for your personal life or your business, is your roadmap to financial success. If you don't have one yet, now's the time to start. If you already do, it's worth revisiting to ensure it still fits your current needs, priorities, and growth plans.
Steps to Build or Refresh Your Budget (Personal & Business):
List all your sources of income/revenue:
Personal: Include salary, investments, side hustles, etc.
Business: List sales revenue, service fees, all sources of business income.
Write down your fixed expenses/overhead costs:
Personal: Rent/mortgage, utilities, insurance, loan payments.
Business: Rent/mortgage for workspace, utilities, insurance, loan payments, subscriptions, salaries.
Track your variable expenses/operating costs:
Personal: Groceries, dining out, entertainment, transportation, gym.
Business: Marketing expenses, inventory costs, supplies, travel, contractor fees.
Allocate a portion for savings/business reserves and debt repayment:
Personal: Emergency fund, retirement savings, debt reduction.
Business: Retained earnings for future investment, emergency fund, debt repayment, tax reserves.
Don't forget to include a "fun money" or "reinvestment" category:
Personal: Life's too short not to treat yourself occasionally.
Business: Invest in professional development, team building, or small luxuries that boost morale and creativity.
Business specific points:
Projected vs. Actual: Compare your budgeted projections with actual results regularly. This will help you identify areas where you're overspending or underperforming.
Cash Flow Management: For businesses, especially, focus on cash flow. A budget will help you anticipate periods of low cash flow and plan accordingly.
Profit Margins: Calculate and monitor your profit margins. Ensure your pricing strategy supports your financial goals.
Tax Planning: Set aside a portion of your income/revenue for taxes. Proactive tax planning can save you money in the long run.
The key is to ensure your expenses don't exceed your income/revenue and to regularly revisit your budget as circumstances change. For businesses, this includes adapting to market fluctuations, scaling operations, and investing in growth. Whether it's your personal finances or your business's, a well managed budget is a very handy tool.
Stay tuned for more tips to set yourself up for financial success for you and your business.
Disclaimer:
Please note that the information provided in this blog post is for general informational purposes only and should not be considered financial advice. We are not certified financial advisors. The insights shared are based on our own experiences in managing our businesses and working with a diverse range of clients over many years.
The strategies and suggestions presented are intended to offer simple, basic ideas to help business owners succeed. We encourage you to take what resonates with you and adapt it to your specific circumstances.
Ultimately, all financial decisions are your sole responsibility. It is crucial to conduct your own thorough research and consult with qualified financial professionals before making any financial commitments. Your business's financial success depends on your individual diligence and informed decision-making.
