How to kickstart your savings goals in 2025

The beginning of the new year is an ideal time to set fresh financial goals. Whether you’re saving for a relaxing getaway, a new car, or just want to build a solid emergency fund, 2025 could be your year to make some serious money moves. Here’s how to get started:

1. Set clear, achievable goals

Start by defining what you’re saving for and how much you’ll need. Be specific with your goals to give yourself a clear target to aim for. For example, instead of saying “I want to save money,” say “I want to save $8,000 for a European holiday by December 2025.” Breaking down your goals into smaller, manageable steps can make them seem less daunting and more achievable. Consider setting short-term milestones to track your progress and stay motivated. Try Mozo’s savings goal calculator.

2. Create a realistic budget

A well-thought-out budget is the backbone of any successful savings plan. List your income and expenses, and identify areas where you can cut back. For example, you might find that you’re spending more than you realised on meal delivery or streaming services. Use budgeting apps or tools to track your spending and stay on top of your financial habits. Regularly review and adjust your budget as your circumstances change to ensure it's effective. Try Mozo’s handy budget calculator.

3. Automate your savings

Make saving effortless by setting up automatic transfers from your everyday account to a dedicated savings account. This way, a portion of your income goes directly into savings before you have a chance to spend it. Automating your savings can help you build a consistent habit without needing to remember to transfer money manually each month. Consider aligning these transfers with your payday to ensure you’re saving before any discretionary spending takes place.

4. Find ways to boost your income

Consider side gigs, freelancing, or selling unused items to generate extra cash. The more you can boost your income, the faster you can reach your savings goals. Look for opportunities that align with your skills and interests, such as tutoring, writing, or offering services like dog walking or house cleaning. Even a few extra hours of work a week can make a significant difference over time.

5. Take advantage of savings tools

Explore high-interest savings accounts, term deposits and budgeting and savings apps to help grow your nest egg. These tools can offer better returns compared to a regular bank account. High-interest accounts can compound your savings, while term deposits can provide higher interest rates in exchange for locking your money away for a set period. Budgeting and savings apps allow you to put away small amounts regularly, potentially yielding higher returns in the long term.

6. Stay motivated

Keep your savings goals front and centre by visualising and calling out your progress. Create a spreadsheet, set reminders, or celebrate small milestones to keep yourself motivated and on track. Seeing how far you’ve come can be a powerful incentive to keep going. Share your goals with friends or family who can offer support and encouragement. Remember to review and reflect on your goals regularly to stay focused and make any necessary adjustments.

By following these steps, you can kickstart your savings journey and make 2025 a year of financial success. Remember, the key is to stay committed and adaptable as you work towards your goals.