Charting the course: Tips to managing your personal finances in 2025

By Albert Larweh ASANTE

Setting financial goals for the year is not just putting numbers on a spreadsheet, they are the blueprint for the life you want to build.

Yet, too often, we treat them like New Year’s resolutions – ambitious in January, abandoned by March for those of us who just observed the process and by June for those who did not hold themselves accountable to deliver on the plan.

I have come to learn that whether you are managing billions or budgeting for personal finances, the secret to success lies not just in setting goals but following through with them. In other words, your behaviour plays a big role in your ability to create wealth. So be mindful of your life experiences and how they may have shaped your views about money.

The truth is your financial goals are not just about money, they mirror your ambitions, priorities, and how much control you truly have over your future.

It is never too late to set your financial goals even if the year has started. In this write-up, I will share ten tips to help you get your finances right, with practical approaches to support you on this path.

Start by setting financial goals for 2025

Just like every year, it is important to set goals for your finances. It might feel cliché or like a tiring exercise, but this time, let us focus on setting goals that are realistic and attainable.

The year may feel long, and unexpected challenges such as health challenges and the loss of a loved one among others can arise often throwing you off track. However, when we set goals within our reach, we can better handle those surprises while still working toward what matters most.

Goals command your thoughts, liberate your energy and inspire hope (Andrew Carnegie).

Create a simple budget

John C. Maxwell defines a budget in simple terms “telling where it should go instead of wondering where it went”. A budget is a simple plan that helps you understand where you make and how you spend your money. It shows how much money is coming in and where it is going.

Think of it as a guide that helps you stay in control of your finances (this will make you more rational in your spending than emotional). This will help you make choices based on what you have rather than what others have so you can avoid overspending and make room for savings to achieve your financial goals.

To create a simple one, write down your income and list all your expenses, including rent, food, utilities, transport, and savings. Make sure your expenses are lower than your income.

A look at your bank statement always provides a clear record of your income and expenses, making it easier to see what you are earning and spending. These days, the statement is easily accessible via a more customer friendly banking app.

 Save money regularly

Saving is one of the most effective ways to secure your future. It helps build a financial cushion that can protect you in times of need, such as unexpected medical expenses, job loss, or emergencies.

The key to successful saving is consistency. Even if you start with small amounts, setting aside money regularly adds up over time, making a big difference in the long run. Patience, weaved with the extraordinary power of compounding will position your finances for growth. A good rule of thumb is to aim to save at least 20% of your income each month.

While this might seem challenging to some at first, it is important to treat saving like something that you commit to every month.

You can gradually increase the amount your income grows or as you find areas in your budget to cut back. The key is to make saving a habit, so it becomes second nature.

 Debt management

Debt can be a powerful tool for achieving your financial goals when managed strategically. Whether you are financing the purchase of a house, investing in education, or seizing business opportunities, loans provide access to resources that can enhance your quality of life and build long-term wealth.

The key is maintaining a balanced loan portfolio that aligns with your income and financial objectives. Different loan types serve different purposes. Mortgages help build your property assets, personal loans can fund important life events, and investment loans can generate and increase your wealth through strategic opportunities. By working with your bank to understand various loan options, interest rates, and repayment terms, you can create a debt structure that works for you.

Make smart investments

Investing is a powerful way to grow your money over time. Unlike saving, which typically earns a small amount of interest, investing allows your money to work for you and potentially earn higher returns. When you invest, you put your money into different asset classes that can increase in value, helping you build wealth for the future.

There are several investment options you can choose from like mutual funds, stocks, and bonds, depending on your financial goals and how much risk you are willing to take on. Each type of investment has its own level of risk, and it is important to understand them, your unique situation, and liquidity needs among others before deciding.

Plan for Retirement

It is never too early to start saving for retirement. In fact, the earlier you begin, the more time your money might have the opportunity to grow through interest or investment returns. By starting now, even with small contributions, you can build a retirement fund over time.

When you are younger, it is easier to set aside small amounts because you have a longer time horizon for your savings to grow, which means you do not need to save as much each month to reach your retirement goals.

Start by estimating how much money you will need when you retire. Consider your lifestyle, healthcare needs, and any other expenses you may have. Once you know how much you will need, break it down into smaller, achievable targets.

You can start by opening a retirement account and making regular contributions, even if they are modest at first. Consistency is key, and by setting up automatic transfers, you can make saving a habit that does not require constant attention.

Build an emergency fund

Life is full of surprises, and some of them can come with unexpected costs. Be it an unexpected medical emergency, urgent car repairs, or a sudden home repair, these situations can quickly drain your savings if you are not prepared.

That is why you need an emergency fund. It is money set aside specifically for those unexpected expenses.

Having an emergency fund gives you peace of mind, knowing that you can handle life’s surprises. Aim to save enough to cover at least three to six months of your regular expenses. This way, you will be able to manage any situation that comes your way, whether it is a job loss, sudden medical cost, or a necessary home repair.

Use digital tools to stay on track

Managing your finances becomes much easier when you have the right tools at your disposal. Digital platforms, like mobile apps and internet banking applications, provide a simple way to track your spending and stay on top of your financial goals.

These tools give you real-time insights into your account balances, helping you know exactly how much you have and where your money is going.

One key benefit of using digital tools is the ability to track your expenses. Instead of manually recording every transaction, these platforms automatically categorize your spending, giving you a clear view of where your money is being spent each month.

Whether it is groceries, transportation, or entertainment, you can easily see how much you are spending in each category, making it easier to identify areas where you could cut back.

 Protect your finances

Protecting your finances is just as important as managing your spending and savings. As is simply put in everyday language, “Life happens” – Life can be unpredictable, and unexpected events can create financial burdens. Without proper protection, these situations can quickly drain your savings, leave you in debt or cause frustration and in some situations, depression.

This is where insurance comes in. Insurance acts as a safety net, helping to cover the costs of these unexpected events, so you do not have to worry about dipping into your savings or begging friends and family to come to your aid. By paying a relatively small premium for insurance, you can avoid large financial setbacks in the future.

Seek professional advice

Managing your finances on your own can often feel overwhelming, especially if you are trying to balance various expenses, savings goals with long-term financial planning. It is easy to get lost in the numbers or unsure about where to start.

There are a lot of options when it comes to building your finances. From investments to loans, insurance and many others which is always difficult to know which path is best for you if you have little to no knowledge of this.

How Standard Chartered Bank can help

Standard Chartered Bank offers expert financial advice to help you understand your options and create a customised plan that fits your financial goals. Let us explore how we can assist with each of these ten essential financial tips to ensure that 2025 is your most financially successful year yet.

• The Bank can help you develop clear and achievable financial goals – short and long term – based on what you want to achieve in the future. Standard Chartered uses a system-based approach to assess clients’ financial needs and risk appetite before proposing investment options that suit each client’s unique objectives.
• The Bank offers a range of savings accounts and fixed deposit options that allow you to automate savings, ensuring you meet your savings target every month.
• The Bank’s app lets you set up automatic transfers to savings accounts, making it a seamless process to save without even thinking about it. You can also track your expenses through this platform and decide on ones you want to cut back.

Standard Chartered offers personalised financial advice and planning services for free to help you make the right decisions for your financial future. In addition, the Bank and our Wealth Management subsidiary opens the doors to global financial markets to allow for investment in some of the world’s topmost brands through its offshore mutual funds and various fixed income securities.

At the end of the day, financial goals are not just about what you want to achieve, they are about who you want to become. It is not the numbers in your account that define your success, but the discipline, clarity, and courage you build along the way. As you set your sights on 2025, remember: your goals should challenge you, your actions should empower you, and your journey should inspire you.

Albert is the Chief Finance Officer at Standard Chartered Bank Ghana PLC

Disclaimer: This article does not constitute any advice, offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices.

SCB accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services.

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