10 smart money decisions to make in 2025

• As with every new year, individuals and businesses often make decisions about their finances, and the same may be true for 2025
• These decisions must be made in alignment with smart and implementable strategies
• From saving and staying off debt to budgeting, TheRadar highlights 10 smart strategies to help you achieve your financial goals in 2025

It may be just a few days into the new year, but what better time to outline, plan, and implement those money goals you have in your head than now?

In 2025, it is essential to align your financial goals with smart, time-tested, and implementable strategies so you don’t burn out or feel overwhelmed while chasing those goals.

In this regard, TheRadar has highlighted 10 essential smart decisions that will get you closer to achieving your money goals by the end of the year.

10 smart decisions to make about your money in 2025

1. Stay off debts

Nothing derails one’s financial goals like constantly being in debt. Although there are good debts like mortgages or debts for future goals like tuition, being in debt constantly puts you in an anxious state, drains your resources, and limits your ability to save and invest.

Therefore, to achieve your financial goals for 2025, avoid being in debt as much as you can.

You can do this by paying off debts as quickly as possible, living within or below your means, and avoiding an ostentatious lifestyle. Always bear in mind that if you can’t afford it right away, it can wait.

3. Adopt a frugal style to your spending

A smart way of building wealth is to be frugal in your spending.

As much as there are times when you feel the urge to splurge on items you have always wanted or to compensate for delaying gratification, it is important to bear that spending above your means is one sure way of derailing your financial goals.

One way to curtail excessive spending is to prioritise your needs and only spend on essentials.

Also, avoid situations that will trigger you to spend on impulse or things not planned for.

3. Have a budget

The foundation of all smart money decisions is budgeting. A budget gives you a roadmap for deciding what is important and guiding you toward achieving your goals. It is essential to help you make informed decisions about how to allocate your money.

A budget also helps you keep track of your income, expenses, and savings and ensures you stay focused without getting yourself into any undue financial stress.

For whatever it is you are saving for, having a budget helps you gain control over your finances, allowing you to prioritise, work towards them and build a secure financial future.

4. Monitor where your money goes

To stay on top of your money goals in 2025, consciously start keeping tabs on where the bulk of your spending goes.

Doing this helps you know if your spending aligns with your financial goals for the year, know which areas to start spending less on, and ensure you are on track.

For instance, if your goal for the year is to invest more in your business, pay tuition, pay rent, start up your building project, buy a car, or anything else, tracking your spending will help you know if you are still on course or not.

5. Save, save, save

The importance of saving cannot be overemphasised. Saving literally saves you.

Saving is very vital to attaining your financial goals, for emergencies, and in times of financial strain.

The general rule of thumb about saving is to adopt the “pay yourself first” strategy. This strategy proposes that you set aside a percentage of your income for savings before paying for anything else.

One of the helpful ways of saving without “feeling it” is to adopt the old-fashioned but time-tested ajo or akawo way where you save a certain amount daily with itinerant merchants.

Another helpful way is to open an account with a commercial bank or financial technology (fintech) company where a certain amount of money (salary, if you earn one) is deducted from your account monthly or weekly and saved for you until a set maturity date.

You may also consider OPay’s save-as-you-spend strategy. This feature on the fintech app involves deducting a certain percentage of all your spending and saving it for you until a set maturity date.

Some of these banking options sometimes come with interests, presenting you with a win-win situation.

6. Consider getting an insurance

Insurance is one way of getting back on your feet when an unforeseen negative event comes knocking. It helps you bounce back without having to start from scratch.

Whether you are considering life insurance, vehicle insurance, educational insurance, health insurance, or any other type of insurance, you are well on your way to protecting your financial foundation from losses due to unexpected negative turn of events.

7. Invest your money

With surging inflationary pressures tugging at the seams of Nigerians’ finances, there is no better option to hedge against inflation than investing in securities that ensure your finance doesn’t lose its value over time.

Five major ways of ensuring you are ahead of the curve is to diversify your investment portfolio by investing in bonds, stocks, mutual funds, Real Estate Investment Funds, Treasury bills, and commercial papers. These assets are recommended because they tend to appreciate or maintain the same value over time.

The other ways are to invest in real assets, invest in securities, consider savings accounts with high yield, and invest in yourself.

 8. Set financial goals

Beyond mouthing it, it is important to set goals about your finances. Set goals for how much you want to earn in the year, how much you want to save, and what percentage of your earnings you want to spend per time.

Your financial goals should be set as short-term, medium-term, or long-term, giving you a sense of what you are expected to have achieved at every given time.

Also remember that like other life goals, your financial goals should not be arbitrary, haphazard, or done on the spur of the moment.

These goals should adopt the SMART strategy; it should be Specific, Measurable, Achievable, Relevant, and Time-bound.

9. Plan for retirement

If you are a young person, the best way to run away from the anxiety of going broke in old age is to plan towards your retirement or the inactive stage of life.

In Nigeria, it is often a common sight to see retired (government) workers queuing endlessly or even protesting for their pensions and gratuities.

Young people can escape such a trap by considering multiple sources of income that allow them to take care of their needs now and later on in life.

You may consider building a business venture and creating systems that ensure the business thrives without your constant presence.

You can also upskill or acquire knowledge in any area of interest so you can begin consulting for people.

Another helpful tip is to consider investing in or buying shares of businesses with good or high return on investment (ROI). This way, your money works for you even when you are old and feeble.

10. Pack. Your. Lunch

Food expenditure is one of the biggest things eating into the finances of the average Nigerian.

According to the National Bureau of Statistics (NBS), the escalating inflation rate in Nigeria led households to dedicate the largest portion (54.9 per cent) of their earnings to food expenses in the last six months of 2024.

The surging headline inflation of 34.60 per cent and food inflating of over 40 percent means that Nigerians spend more on food.

Also, the prices of food in most retail outlets have surged in response to inflation.

Therefore, to ensure your entire financial decisions for 2025 are not sacrificed on the altar of food, it is important to pack your lunch if you are a worker or business person.

This ensures you reduce or spend minimally on eating out during lunch hours.

As a bonus point, packing your lunch helps you eat healthy and stay away from junk, which is equally a win if you ask me.

Vision Board for 2025: Tips for turning dreams into reality

Meanwhile, TheRadar earlier reported that the start of a new year feels like a blank canvas, brimming with potential, hope, and the excitement of fresh beginnings. 

But how often do those January resolutions fizzle out by March? If you’re tired of setting goals that never seem to stick, it’s time to try something more intentional: a vision board.