Healthy Money Habits for 2025

Money Wise

Whether you’re dreaming of a big holiday, buying a new car, or saving for your first home, there’s no better time than now to start building money-saving habits that stick. The start of the year is when a lot of people set financial goals, but this can be done anytime during the year so don’t worry if you haven’t set yours yet or indeed if you’ve already lapsed a bit in trying to achieve yours.  January is a tough month for lots of people so February can sometimes be the month to keep going or even try again.

Employee Financial Wellness has worked with organisations across Ireland, offering financial education programmes that empower employees to take control of their finances. We’ve outlined some top tips to help you build healthy money habits without giving up the things you love.

Create a Budget That Works for You – Don’t scream just because we said budget, read on…….

Let’s face it, for many people ‘budget’ is a buzzkill word that screams restriction, but we prefer to see it as a tool to guide you to where you want to go financially. It’s not about saying no to everything fun; it’s about saying yes to the things that matter the most.

We recommend the 50/30/20 rule:

• 50% for needs (housing, bills, groceries).
• 30% for wants (yes, coffee counts!).
• 20% for savings or paying off debt.

Budgeting is a great way to track your finances while helping you spot on areas to save like unnecessary subscriptions.  It’s important to review your budget each month to make sure you are staying on track but don’t be too hard on yourself, simply adjust it for the next month and find a balance that works for you and future you.

Automate Your Savings

Saving doesn’t have to be hard work. Set up an automatic transfer to your savings account as soon as your paycheck comes in. Even small amounts—like €20 a week—can add up to over €1,000 by the end of the year. Treat it like paying your future self-first.

Cut Back, Not Out

You don’t have to say goodbye to the things you love to save money—you just need to be smart with your choices. Love dining out? Try limiting it to once a week as a treat and opt for home-cooked meals the rest of the time. Enjoy shopping? Wait 24 hours before making a purchase to avoid impulse buys. Small tweaks like these add up without making you feel deprived.

Build an Emergency Fund

If you don’t already have an emergency fund, make this the year you start one. Aim to save 3–6 months’ worth of expenses to give yourself a financial safety net for unexpected events, like car repairs or medical bills. Start small setting aside even €10 or €20 a week can make a difference over time.

By taking these small, practical steps, you can create a routine that fits seamlessly into your life. Healthy money habits aren’t about giving up the things you love—they’re about creating a future you’ll feel proud of.

Want some help and Guidance?

Remember as a member of our employee financial well-being programme you can register for webinars and book your one-to-one guidance clinics as often as you want on your dedicated portal page.

Beating Blue Monday Webinar: Empowering Your Mental and Financial Well-being

Money Wise

We recently held an online event with our CEO Nick Lawlor and Barbara Louise Brennan, Founder of Mental Health Matters during which we explored the close link between Financial Well-being and Mental well-being.  Here are some of the main points that were discussed and some simple tips that can help us all throughout the year if we encounter stress and anxiety caused by money worries.

Money as an Enabler

Nick discussed how money doesn’t directly bring happiness but serves as an enabler of life’s experiences and goals. A lack of financial freedom often leads to significant stress.

• Key Insight: It’s not about having more money but about using it wisely to achieve what truly matters in life.

The Link Between Money and Mental Health

Barbara emphasised that financial literacy changes how we view and manage money.

• Money and Worry: Financial concerns are among the top causes of stress and have a direct impact on mental health.
• Breaking the Stigma: Like mental health, financial health often carries shame and assumptions of judgment, which must be addressed through open conversations and education.

Tips for Financial and Mental Well-Being

1. Nick’s Framework: Label, Target, Do, Review.

• Label: Identify what you want to achieve.
• Target: Set clear, actionable goals.
• Do: Take the necessary steps to reach those goals.
• Review: Periodically assess your progress and adjust as needed.

2. Barbara’s Mantra: Ask, Pause, What’s True, What Can I Do?

• This approach helps you identify the root cause of your feelings and focus on actionable steps to address your situation if you find yourself feeling stressed or worried.

Final Thoughts: Avoiding Spend Creep

Nick cautioned against “spend creep,” where additional income leads to increased spending instead of achieving meaningful goals.  Due to Budget 2025 a lot of employees will have some extra money in their pay cheque this month and every month so it’s important to use this in a meaningful way that can help us achieve our own money goals.

• Focus on understanding your goals, labelling them clearly, and taking intentional actions to achieve them.

Ultimately, our webinar provided valuable insights into the powerful link between mental and financial health, shedding light on how understanding and managing these aspects can improve overall well-being.