New data shows that 74% of consumers prioritise saving and investing as top financial goals next year, with a clear strategic focus on making their cash work harder for them while limiting tax exposure.
As we enter the new year, Matt Ford, CEO and co-founder of Sidekick, shares his top tips for starting an investment journey in 2025 and explains why intelligent cash management isn’t just for the ultra-wealthy.
Be strategic
The way people invest can create enormous wealth disparities. High-net-worth individuals can access a variety of uncorrelated, diversified alternative investments that help deliver higher returns.
In fact, the ultra-wealthy have generated three times the returns of the average investor over the past 20 years, according to research released by JP Morgan in 2021.
They can put more of their wealth to work and hold investments for a longer period of time because they can always just borrow against their assets if they need cash.
But investing shouldn’t be closed off in this way. It’s important that everyone participates.
A good first step is to diversify your investments, spreading your money across assets like stocks or bonds within a managed portfolio.
This approach helps balance risk, making it easier to get started without needing to make every investment decision yourself. A long-term perspective and patience are key.
Take the plunge
As the old Chinese proverb goes, the best time to plant a tree was 20 years ago, the second best time is now. The same applies to investing. The earlier you begin investing, the longer you can hold investments and allow compounding to work its magic.
Starting with a small, consistent monthly amount can add up significantly, especially over the long haul. The key is to make investing a habit, knowing it’s about building momentum.
People can spend months, even years, toying with the idea of investing - if that’s you, don’t waste any more time. Make 2025 your year!
Crunch the numbers
One of the most common concerns of first-time investors is that they don’t know how much to set aside. The answer is: whatever you can afford. Retail investing has been democratised in several areas, so if you’re just starting out, you need very little - many platforms let you begin with as little as $1.
You can buy a fraction of a share or ETF with no trading fees and see how the value increases or decreases in real time while markets are open.
What matters most is setting a regular, manageable amount to invest each month that suits your current investing journey. Over time, these contributions will compound and grow, helping you build a portfolio that aligns with your goals.
Weigh up the risk
Risk tolerance varies from person to person, and getting this balance right is essential. The ultra-wealthy approach risk carefully, often balancing higher-risk investments with stabilisers like bonds or real estate to ensure they’re positioned for growth and protection.
A balanced approach that mixes stocks (higher risk) and bonds (lower risk) is typically a solid choice for beginners. This way, you benefit from growth opportunities without taking on too much volatility.
Investing is about progress over perfection - set goals, choose a risk level that suits you and keep in mind that a steady, long-term approach often yields the best results.
Educate yourself and keep a finger on pulse of changes
The world of finance is constantly changing. Follow reputable news sources to stay updated. You could even consider taking an online investing course, reading investment guides or watching videos to deepen your understanding of investment principles.
Financial regulations are regularly updated and new government policies can affect investments. Be aware of changes to tax laws, pension contributions and investment options in 2025, and if you're ever unsure about your investment choices, it may be worth consulting a certified financial advisor to get tailored advice.