Getting on top of your finances is one of the most common new year’s resolutions set by Australians with more than half (52%) setting a financial goal for 2025, according to new research from ASIC’s Moneysmart.
The research revealed that while more than half of those surveyed plan to set a financial goal, only about 1 in 8 (12%) manage to stick to it.
Gen Z (77%) are the most likely to plan to set financial resolutions or goals for 2025, followed by Millennials (60%), Gen X (51%) and Baby Boomers (35%).
When it comes to achieving their goals in 2025, four in five (85%) anticipate challenges, with the most common being financial constraints (56%).
Other challenges include lack of motivation (30%), lack of knowledge (24%) and lack of time (24%). Gen Z (89%) and Millennials (86%) are more likely than older Aussies to anticipate challenges (Gen X – 77% and Baby Boomers – 71%).
ASIC Commissioner Alan Kirkland said although many consumers went into the new year with good intentions, it can be hard to stay on track as the year progresses.
‘Plenty of people start the new year with the best of financial intentions, be it a goal to save more, start investing or pay off debt. As the summer holidays draw to a close it can be hard to stay on track without a plan,’ Mr Kirkland said.
‘One of the ways you can stick to your financial goals in 2025 is to take stock of your spending for the past year. Understanding where your money is going is a good first step.
‘Planning a budget that fits your income and goals, covering essentials like rent or mortgage repayments, insurance and bills can help you to set aside funds for the things you truly want.
‘If spending during the festive season left you with debt or you’re wanting to get on top of your finances this year, there are simple steps you can take to get out of debt and help available if you’re struggling.
‘ASIC’s Moneysmart website has the information and tools to help Australians stick to their financial goals in 2025.’
RMIT University Professor of Finance, Dr Angel Zhong recommends reflecting on your financial journey over the past year to identify what was successful and what wasn’t and setting goals to work towards in the coming year.
‘Grasping your financial situation is the initial step towards making positive changes. Whether you’re building an emergency fund, paying off debt, or starting an investment portfolio, it’s crucial to set goals that match your unique financial circumstances,’ Dr Zhong said.
‘When you transition from financial stress to empowerment, you’ll notice your financial decisions becoming more intentional and aligned with your goals.
‘The key to a successful financial reset is to set realistic goals and stick to them. By making small changes to your spending habits and focusing on your financial goals, you can make 2025 your year for saving and building a positive relationship with money.’
The most common financial goals for 2025
Increasing savings (67%) and spending less on non-essential items (55%) are the most common financial goals for 2025. Other goals include:
Creating or updating a budget (43%)
Investing more (37%)
Paying off debts (33%).
Financial goals across the generations
Gen Z (59%) are more likely than older Aussies to set creating or updating a budget as their financial resolution or goal (Millennials: 43%, Gen X: 45%, Baby Boomers: 28%).
Gen Z and Millennials (51% each respectively) are more likely than Gen X (26%) and Baby Boomers (12%) to set investing more as their financial resolution or goal.
Gen X (62%) and Baby Boomers (64%) are more likely than Gen Z (44%) to set a goal to spend less on non-essential items.
Millennials (35%) and Gen X (42%) are more likely than Gen Z (22%) to set a goal to pay off debt.
ASIC’s Moneysmart tips to help Australians stick to their financial goals
Have a clear plan – no matter how big or small your financial goal is, having a plan helps you stay on track.
Set a specific time frame to achieve your goal – develop a time frame for your goal, with smaller goals to achieve along the way. You can break your goals into short term (0 to 2 years), medium term (3 to 5 years) and long term (more than 5 years).
Tell your family and friends – people who publicly commit to their goals are more likely to achieve them.
Regularly review your progress – make a habit of checking your money. The more you know about your financial situation the better you can manage it, especially when you make realistic plans.
Celebrate your achievements – even a small win can change your habits. So, take the time to celebrate small wins as well as the big ones.
Visit moneysmart.gov.au/goalsetting for access to free tools and tips to reach your financial goals in 2025.
