For many of us, a new year is a chance to reflect on our lives and think about where we could make improvements. Often New Year’s resolutions centre around getting physically fit and healthy. But the new year can also be an opportunity to look at your finances and put a plan in place that will get them in good health for the year ahead and beyond.

Here are some simple financial resolutions you can make that could help you achieve your goals in the year ahead and get your finances on track for the future.

Set clear saving and investing goals

Before you do anything else, make sure you’re clear about what you’re saving or investing for. Whether you have a specific objective or outcome, or simply want to build up an emergency fund, having a clear goal makes it easier to stay focused and get your finances on track.

Tackle inflation head on

With interest rates and inflation creeping up, it looks like increased living costs are here to stay. This means budgets need more attention if we’re to make our money stretch further. Take a good look at your monthly expenditures and think about areas where you could reduce your outgoings and put this money towards saving and investing goals instead.

And with inflation set to rise, it’s more important than ever to make sure the value of your money keeps pace with inflation – at the very least. If you really want to give your money a chance to beat inflation and grow in value, you’ll need to consider investing it.

Choosing investments can be daunting so it might be worth speaking to a financial adviser if you’re not sure about the best options for you.

Keep an eye on your investments

With most investments, it’s important to remember that you’re investing for the long term. But that doesn’t mean you shouldn’t keep an eye on how they’re doing from time to time. Markets move and things change – something we’ve experienced a great deal of in recent years.

So, making sure that your investments are still on track and their objectives are still aligned to your personal circumstances is always a good idea. Just a quick review now and again to check how things are looking or to see if you can top up your investments with a bit of spare cash will set you in good stead.

If you’re not comfortable doing this yourself, a financial adviser can help. They’ll get to know you, understand your investment goals and how much risk you're comfortable taking. They’ll then be able to build an investment strategy that’s right for you, keep it under review and make changes when needed.

Make the most of your tax-free allowances

Making the most of tax relief and tax-free allowances will certainly give your finances a healthy boost.

Let’s start with ISAs

One of the most tax-efficient ways you can save and invest is through an individual savings account (ISA) as there’s no income tax or capital gains tax to pay on any investment growth or interest you earn, or on the money you take from it. Currently you can put up to £20,000 into an ISA each tax year. So, if you haven’t yet used up all your allowance, think about doing so before the end of the tax year on 5 April.

And if you’re married or in a civil partnership, you may be able to benefit from using your partner’s ISA allowance, meaning you can save or invest £40,000 tax efficiently.

Now on to pensions

A pension is another one of the most tax-efficient ways to save. The government even encourages pension saving by giving tax relief. Tax relief is based on the rate of income tax you pay. For example, if you’re a basic rate taxpayer, you’ll get 20% tax relief, meaning for every £100 that goes into your pension, the government contributes £20. In addition to this basic rate relief going into the pension, higher and additional rate taxpayers can claim a further 20% and 25% tax relief respectively by contacting HMRC. And if you are in Scotland, you can claim even more with the higher rate tax brackets applicable there.

Remember though that the most you can normally pay into a pension each year (known as the annual allowance) is currently £60,000. If you’ve max’d out on your own limit and your partner hasn’t, you can fund their pension allowance as well.

Tax is undoubtedly a complicated subject and your own circumstances and where you live in the UK could have an impact on tax treatment. If you have any questions about the tax system, how it affects you, or you need help making sure you’re managing your money in the most tax-efficient way, getting professional advice can give you peace of mind. A financial adviser will go through all the options available and work with you on a tailored plan.

Get plans in place to protect your loved ones

For many, this might seem like a task that’s a long way off. But protecting your loved ones from a hefty inheritance tax bill or from financial difficulties if you’re no longer able to provide for them is just a crucial as having an up-to-date will.

Watch our video to find out what you need to know about income protection, critical illness cover and life insurance, and how experts can help you look after your financial future. With a bit of careful thought and forward planning, there’s a lot you can do now to make sure that your family is protected.

There are also a few things you can do to make sure you’re on track to leave as much as you can to the people you choose rather than to HM Revenue and Customs.

Beware of scams

With many people having pension pots worth tens or even hundreds of thousands of pounds, it’s no surprise that these are a target for scammers.

Two of the most common pension scams to be aware of are schemes offering early pension release and free pension reviews. Generally, you can only take money from your pension once you reach age 55 (going up to 57 in April 2028). So any scheme offering to help you access your money before this is likely to be a scam. And most companies offering free pension reviews are trying to get you to transfer your pension money either into high-risk investments or a scheme that doesn’t actually exist.

Be wary too of crypto or other investment schemes promising great returns, or those which use high-pressure sales tactics to rush you into ‘time-limited’ offers. Remember, if it sounds too good to be true, then it probably is.

If you’re in doubt about a company’s legitimacy, check with the UK’s financial regulator, the Financial Conduct Authority (FCA) at https://www.fca.org.uk/scamsmart

There's support if you need it

There’s a lot of free guidance available online. But when it comes financial planning you may want to consider additional advice. There isn’t a generic one-size-fits-all approach as everyone’s situation is unique.

Our financial planners can guide you through the process and help make sure your finances are in order. Together we can set financial goals and help you manage your money better – it’s never too early to start planning for the future. If you already have an abrdn financial planner, get in touch with them – they’ll be happy to help. Find out more about abrdn's financial planning services.

The information in this article should not be regarded as financial advice. Please remember that the value of investments can go down as well as up and may be worth less than was paid in. Tax rules can always change in the future. Your own circumstances and where you live in the UK could have an impact on tax treatment. Information is based on abrdn’s understanding in January 2025. 

abrdn Financial Planning and Advice Ltd is registered in England (01447544) at 280 Bishopsgate, London EC2M 4AG and authorised and regulated by the Financial Conduct Authority.