A savings expert explains 5 key steps to making your money work harder in 2025
A savings expert explains 5 key steps to making your money work harder in 2025
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With the new year rolling out, many people will be making plans to build a savings pot, and perhaps consider how their money could be working harder for them, so it is well-placed to grow. It can be a good time to consider how to get into new habits, including saving and investing for the future.
1. Create and stick to a budget. “The importance of a well-structured budget cannot be overstated,” says Francis. She suggests reviewing your monthly income and outgoings to identify areas where you can cut back on non-essential spending. “The money you save can be used to pay off debts, moved into a savings account, or even invested for your future,” Francis adds.
“By taking a proactive approach to budgeting, you not only ensure that every pound is working as hard as possible for you, but you also cultivate a mindset for long-term financial success.”. 2. Think about your financial goals and what you are saving for.
“You don’t need to have all your life goals nailed down perfectly, but having a rough idea of what you’re aiming for and how much money you’ll need is helpful,” says Francis. “It provides a useful starting point to weigh up the best options available to you.”.
Many people keep all their cash in savings accounts. But Francis suggests that if you’ve got money you can afford to put away for the longer term, perhaps for five years or more, then investing could be worth considering. Money held in investments may potentially see stronger growth over the longer-term than savings held in cash.
