Don’t Let Your 2025 Financial Resolutions Fade Away

Obinna Chima

Making resolutions is a fantastic way to start the new year. At the beginning of every year, we all outline the goals and aspirations we want to achieve. 2025 is not different. From planning to save more money and committing to other financial goals, to eating healthier, improving our spirituality, exercising more, and losing weight, (a lot) MANY of us set targets for the things we want to achieve.

But looking back and with exactly 60 days into 2025, how many of these things that we resolved to achieve are we pursuing? Don’t be discouraged. It is not late to recommit to these goals, as focusing on them can help you jumpstart a life-change or try to experience new things over the next 305 days left (IN) this year, especially fixing your financial goals and deepening financial literacy.

Financial literacy is a core life-skill for participating in modern society. Being financially literate gives you the ability to make wise financial decisions based on your income and help in prioritising the way you spend your money. It also helps you prevent needless debt and wasteful spending by creating a budget.

Also, one of the most important skills to have in a financially-driven market is the ability to save for rainy days. A person who is financially educated understands that they should not spend all their income as they come. A certain amount must be set aside for future use, no matter how small. You can divide your savings into emergency cash and long-term objectives. If you experience financial difficulties, having emergency money will prevent you from depleting your long-term savings or accruing debt.

Financial literacy provides information about which economic areas are profitable to invest in. In other words, it assists you in choosing the best investments. It aids in economic forecasting and future projections, which can help you make informed financial choices. You would be better off investing your money in a business or other investment alternatives that will provide dividends over time rather than keeping it in a safe place or sitting idle in (WHERE)?

Surveys conducted by the Organisation for Economic Cooperation and Development (OECD) had shown that young adults have amongst the lowest levels of financial literacy. This is reflected by their general inability to choose the right financial products and often a lack of interest in undertaking sound financial planning.

That is why from an early age, children need to develop the skills to help choose between different career and education options and manage any discretionary funds they may have, whether from allowances or part-time jobs. In other words, financial literacy empowers you to make informed judgements and to take effective actions regarding the current and future use of and management of money.

Relatedly, the Consumer Federation of America found a strong relationship between having spending and saving plans and maintaining emergency funds. Particularly for low-income individuals, those with a spending plan with goals were far more likely to have saved money for emergencies than were those without a plan. It is well established by research that people who feel a sense of control over life events are often happier, cope better, and are more resilient in times of stress than others.

Conversely, people are especially unhappy in situations where they perceive themselves to have a lack of control. That is why encouraging people to develop and implement a personal saving plan is very essential for wealth creation. Having a store of rainy days’ money can increase a low-income family’s resilience and enable them to cope better with unexpected shocks.

In addition, storing up assets could increase opportunities. For example, it provides the funds for families to support children when they go to university or to pay for training.

Also, a report by the Institute for Public Policy Research showed that behavioural economists believe that saving can be increased through a combination of incentives. The most effective savings products for low-income families combine making saving as easy as possible, while providing an incentive for savings to be retained.

By learning from our past mistakes and adopting a more realistic and sustainable approach, we can finally break the cycle and achieve our financial dreams. Keep in mind that accumulating wealth is a journey rather than a race. Continue to be consistent, maintain your focus, and acknowledge your accomplishments as you go.