The new year is a great time to check your finances and set goals for a successful year ahead. Whether you’re buying your first home, managing a mortgage, or just trying to save more, starting with a clear plan can help you reach your goals. Here are five simple steps to get 2025 off to a strong financial start.

Step 1: Create a budget

A budget shows you where your money goes and helps you make better choices. If you want to save or invest more in 2025, look at your budget to find areas to cut back. Then redirect that money toward your savings or investment goals.

Tip: Use an online budget tool or a simple spreadsheet to track your spending and stay on course.

Step 2: Set a savings goal

Whether you’re building an emergency fund or saving for something big, having a goal keeps you motivated. Start by setting up an automatic transfer to your savings account or prioritising savings before other expenses.

Tip: Write down your goal and make it specific. Start small if needed and build your savings habit over time.

Step 3: Tackle your debt

Paying off debt is crucial if you’re planning to apply for a home loan this year. Focus on clearing your debts, starting with either the highest-interest ones (to save money) or the smallest ones (for a quick win). Consolidating your debts into one loan can also make repayments simpler.

Tip: Work on paying off credit cards and personal loans first. Cut back on unnecessary spending to free up extra cash.

Step 4: Review your mortgage

Paying off your mortgage faster can save you thousands in interest. Simple strategies like making extra repayments, using an offset account, or splitting your loan into fixed and variable portions can make a big difference. You can also shop around for a better deal to reduce your costs.

Tip: Book a mortgage review this year to find ways to improve your current mortgage setup.

Step 5: Make the most of KiwiSaver

KiwiSaver is a great way to save for the future or buy your first home. Regular contributions from your salary, plus help from your employer and the government, can add up over time. Check that you’re in the right KiwiSaver fund and adjust your contributions if needed to maximise your savings.

Tip: Actively managing your KiwiSaver fund can make a big difference to your long-term savings.

Start the year right

By budgeting, saving, reducing debt, and reviewing your mortgage and KiwiSaver, you’ll set yourself up for a stronger financial future. For more money tips and advice for first home buyers, homeowners, and property investors, visit the Mortgage Express blog or talk to a Mortgage Express adviser for personalised help.