START NOW - Make 2025 Your Best Financial Year Ever

Summary

This video provides a comprehensive guide to financial planning for 2025, focusing on setting meaningful goals and creating a one-year spending plan. The process includes reflecting on the past year’s successes and challenges, setting both emotional and practical intentions for the new year, and using a detailed spending plan to align your financial decisions with your life vision. By taking the time to plan in December, viewers will gain clarity, control, and confidence in managing their finances, ensuring they enter the new year with a clear roadmap for success.

Takeaways

• 😀 December is the ideal month to start planning your finances for the next year, offering more space and less rush than January.
• 🎯 Start your planning with reflection: look back at the previous year, celebrate wins, learn from challenges, and practice self-compassion.
• 💡 Setting clear intentions for the new year helps you align your financial goals with your emotional and practical priorities.
• 📅 Create a comprehensive financial plan by starting with your life vision for 2025 and aligning financial goals with that vision.
• 💸 The One-Year Spending Plan is an effective budgeting method that lets you see your financial goals laid out over an entire year.
• 🔍 Reflect on your past year: track your wins, recognize your challenges, and take away valuable lessons to guide your future decisions.
• 💬 Set both emotional and practical intentions: how you want your financial life to feel and what actions will help you achieve that.
• 📊 The One-Year Spending Plan gives you a big-picture view of your finances, making it easier to track and prioritize goals over the next 12 months.
• 🎯 The goal is not just to save but to understand how each financial decision impacts your bigger life goals, making financial planning more meaningful.
• 🔄 Reevaluate your budget periodically: for example, if you have an unexpected expense, adjust your savings plan accordingly to stay on track.
• 🌱 Taking the time to plan in December helps you enter January with clarity, direction, and confidence, ensuring you're prepared for the upcoming year.

Q & A

Why is December the best time to plan your financial year?

December offers the opportunity to reflect on the past year, set meaningful intentions, and begin planning with less pressure, allowing for a calm and organized approach. It helps you step into the new year with a clear financial direction, whereas January often feels overwhelming due to the hustle of post-holiday routines.

What is the main difference between intentions and goals?

Intentions are broad and focus on how you want your financial life to feel, like reducing stress or feeling more in control. Goals, on the other hand, are specific, measurable, and actionable steps that help achieve those intentions, such as saving a specific amount of money by a set date.

How can reflection help in planning for the new year?

Reflection helps you gain clarity by looking back on your wins and challenges from the previous year. It helps you learn from experiences, practice self-compassion, and ensures that you’re not just reacting to circumstances but making intentional decisions moving forward.

Why is it important to celebrate small wins during reflection?

Small wins, like sticking to a habit or saving consistently, reflect progress. Celebrating them boosts motivation and reinforces the effort put into achieving financial goals, even if those wins seem small compared to big milestones.

How can self-compassion play a role in reflection and planning?

Self-compassion helps you avoid guilt or frustration when you face setbacks. It allows you to view challenges as learning opportunities rather than failures, enabling you to move forward with a positive mindset and avoid avoiding the reflection process altogether.

What is the purpose of a Life Plan in financial planning?

A Life Plan gives you a broader perspective of what you want from your life in the coming year. It helps you align your financial decisions with your overall life goals, ensuring that your finances support your well-being, experiences, and long-term vision, not just short-term financial goals.

How does the One-Year Spending Plan differ from traditional budgeting?

The One-Year Spending Plan provides a comprehensive, long-term view of your finances, unlike traditional monthly budgets that only focus on short-term expenses. It helps you see how all your financial goals fit together, ensuring you're financially prepared for the entire year.

Why is it important to break down large financial goals into smaller monthly amounts?

Breaking down goals, such as saving for a trip, into manageable monthly amounts makes the goal feel achievable. It helps you track progress, adjust when necessary, and ensures that you're staying on track throughout the year.

What role does the emotional side of money play in financial planning?

Money is deeply emotional, and acknowledging these feelings can help improve your relationship with finances. Emotional intentions, such as reducing financial stress or feeling more confident, guide practical actions, such as automating savings or organizing finances, to achieve a healthier financial mindset.

What are the benefits of using a financial forecast when planning long-term goals?

A financial forecast helps you map out timelines for achieving goals and ensures that your long-term vision aligns with your immediate financial decisions. It allows you to see how short-term actions will contribute to long-term financial well-being.