As 2024 nears its end, now is the perfect time to consider your plans for next year. Where do you want to travel? What hobbies do you want to commit more time to? How can you make better use of your money?

The last question is something this article can help with. Read on for some smart financial tips that should help you do more with your money in 2025.

Keep an eye on changing interest rates

Interest rates don’t really matter to me, do they? Think again. They impact everything from your savings and debt to new loans and mortgages. The official Bank Rate (which influences all other interest rates) is set by the Bank of England. It’s been much higher than usual since the pandemic, peaking at 5.25%.

But recent signs are positive and we saw the first drop in interest rates since the end of 2021 in August 2024. All being well, interest rates should continue to drop over the coming months and years.

What does this mean for you? Falling interest rates mean saving becomes less attractive and lending money becomes more affordable. This could be good news if you’re looking to buy your first home or remortgage your existing one. The interest charged on personal or business loans may also come down, potentially opening new possibilities for you in 2025.

Use expected interest rate changes to plan the best path for your money, whether that’s saving, investing or borrowing.

Make better use of fintech

Technology is changing the financial industry in the UK and around the world. You won’t see many of the developments directly, but there are plenty of ways to incorporate fintech into your day-to-day life.

Most digital banking apps offer a range of features such as forecasted balances, remote card freezing and in-built budgeting tools to help you stay on top of your monthly finances. If you haven’t already, explore what your bank has to offer and use it as best as you can.

It may also be worth exploring other fintech avenues such as blockchain, digital currencies and user-friendly investment platforms. Stock trading has never been more accessible with the latest apps, websites and platforms giving you all the tools needed to get started with investing.

Find ways to diversify your income

Times are still tough for many people and the government has warned that the looming October budget will necessarily continue this trend. In a fragile economy like this, finding ways to increase and diversify your income is crucial.

Having different income sources means you’re less reliant on one. Should the worst happen, you’ll find it easier to stay afloat. But how can you make more money? The answer is out there – you just need to be creative and put your thinking cap on.

Doing more in your current job could be the way forward, or it might be a case of starting a side hustle, getting a second job or investing in things that provide passive income. Find the method that works for you and commit.