As we welcome the new year, it’s more than just a change in the calendar – it’s an opportunity for a fresh start, a chance to set the tone for the months ahead. Beyond the excitement of new beginnings, the turning of the calendar brings with it a wave of resolutions — career ambitions, personal growth targets, and, notably, our financial goals.

The concept of 'New Year, New Financial Goals' is more than just a catchy phrase; it’s an invitation to rethink and revitalise how we manage our finances. If you often find yourself revisiting the same financial goals year after year, you’re not alone. It’s natural to consider financial improvements as the new year begins, but turning those intentions into tangible change is another matter. 

Now, here’s the simple truth: big goals often stem from small changes in our habits. So, as we step into 2025 with a few unchecked boxes from last year, let’s focus on the small adjustments that not only shape our goals but also influence our finances in ways that can make a significant difference. Here are five ways to improve your finances in the new year:

1. Practice mindful spending 

It’s all about hitting pause before making that purchase, especially during promotional sales. Take a moment to reflect on what you're buying and whether it aligns with your needs and budget. Similarly, resist the urge to follow trends and make purchases simply because they’re popular. Adopting this subtle shift in mindset can be a game-changer for your spending habits. After all, mindful spending isn’t just about the numbers; it’s about making choices that support your financial well-being.

Read also: How to Lose Your Savings In 10 Days (But, Maybe Don’t)

2. Regularly monitor your finances 

Regularly reviewing your finances is a smart way to ensure you're staying on track. Set aside some time periodically to take a closer look at your financial situation. This is your opportunity to assess your progress and make any necessary adjustments. Whether it’s reallocating funds in your budget or tweaking your savings goals, these check-ins help you maintain control over your financial journey. 

3. Build an emergency fund 

Building your savings during the good times for those unexpected rainy days is one of the best financial habits to start today. Life often surprises us with sudden expenses or unexpected income gaps. Aim to save at least three to six months' worth of living expenses in an easily accessible account. This fund acts as a financial safety net, providing both peace of mind and stability when times get tough.

4. Improve financial literacy 

Enhancing financial literacy equips you with the insights required for informed decision-making, fostering new saving habits through effective budgeting, goal setting, risk awareness, debt management, emergency planning, investment knowledge, and positive behavioural changes. Commit to a weekly habit of engaging with educational resources, such as reading books, following respected financial blogs, or listening to informative podcasts. 

5. Make EPF as your financial ally

Have you ever considered how the EPF serves as a cornerstone for enhancing your financial well-being? Within the framework of the EPF, there are features that contribute to bringing you closer to your financial goals. Let’s explore how these factors can support your journey to achieving your goals:

a) Budgeting and expense tracking 

Effective budgeting is a key pillar of financial success. Start by creating a detailed budget that outlines your income, expenses, and savings targets. With user-friendly tools like the Belanjawanku app by EPF, you can easily monitor spending habits and pinpoint areas to cut back, making your financial goals more achievable. 

It allows you to plan and track your monthly and yearly expenses, curbing unnecessary spending and steering you more effectively towards your financial goals.

With the flexibility to choose between estimates from the Belanjawanku guide or the Rule of Thumb budgeting method, which suggests allocating 45% for necessities, 35% for commitments and 20% for savings — you can tailor your approach to suit your preference. This helps you compare your expenses against the recommended budget and gain a clearer understanding of your financial situation. 

You can easily download the app from the Apple App Store, Google Play Store and Huawei App Gallery. 

b) Boost your savings 

Easily contribute to your EPF account through the Voluntary Contribution feature on the KWSP i-Akaun app, giving you the flexibility to grow your savings with contributions as little as RM10. Seize this opportunity to take charge of your financial future and watch how these small contributions can lead to substantial growth over time. 

Moreover, you can take advantage our Voluntary Excess (VE) feature, allowing you to contribute above the statutory rate, whether initiated by you or your employer. This option streamlines your financial planning, eliminates the need for manual monthly savings, and ensures consistent contributions.   

By leveraging these options, you not only create a reliable backup plan, but you also witness your savings grow steadily. This fosters a deep sense of security and peace of mind as your savings accumulate over time.   

Read also: Boost Your Savings with Your EPF Account 

Optimise EPF savings for long-term growth with (almost) zero effort

As part of the government’s efforts to prepare for our retirement, a portion of our monthly salary is contributed to the EPF. Typically, this amount remains untouchable unless special circumstances arise. 

While it may be tempting to withdraw and use the money for the growing expenses of daily life, you’ll benefit far more by leaving your savings in your EPF. 

It's important to understand that your savings in the EPF will continue to grow over time, in addition to the contributions you make. While it may not seem like much in the short term, the compounding effect will steadily increase the value of your money significantly over time.