Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Out with the Old, In with the Portfolio Refresh: New Year’s Resolutions for Investors
Ruby Layram
29th Dec 2024
New Years resolutions are those promises we make to ourselves as we sweep up the last crumbs of the holiday pudding and look ahead with stars (or stock charts) in our eyes.
While the usual suspects like “exercise more” and “eat healthier” are worthy pursuits, why not aim for resolutions that can also make your wallet a little happier?
If you want to make 2025 the year that you become the next Warren Buffet, you could consider setting goals that will help you strengthen your investing skills.
In this post, I will share 10 investing resolutions – tailored to both beginner and advanced investors – that you could use to inspire your goals for 2025.
Why You Should Set Investing Resolutions
First, let’s address the sceptics.
“Resolutions? Aren’t those the things we break by February?”
Well, maybe when it comes to giving up chocolate. But for investors, resolutions are more than just fleeting promises—they’re a chance to recalibrate, learn, and set measurable goals.
As an investor, January is the perfect time to take stock of where you’re currently at and set the foundations for a solid year of smart financial decisions.
Here are a few reasons that you might want to consider setting investing resolutions on the 1st of Jan!
- They provide clarity: Knowing what you want to achieve helps cut through the noise of market trends and hot tips. Instead, you can focus on the steps that you need to take to achieve your goals.
- They build good habits: Small, consistent actions (like checking your portfolio monthly) can snowball into long-term success. These smart investing habits can build up overtime until you make good decisions on auto-pilot.
- They keep you accountable: In May 2024, it was reported that three quarters of us Brits don’t invest! Setting clear goals holds you accountable and makes it easier to get started.
New Year’s Resolutions for Beginner Investors
Let’s kick things off with 5 New Years resolutions that are perfect for beginner investors.
If you’re new to investing, the sheer volume of information out there can feel overwhelming.
But don’t worry—you don’t have to become the next Warren Buffett overnight! These resolutions are designed to build your confidence and lay the groundwork for future success.
1. Take an investing course
There are plenty of excellent investing courses out there that can provide you with the skills and knowledge that you need to take that crucial first step. Watch this space for our exclusive MoneyMagpie courses!
I always recommend taking a course – or at least attending a webinar – before you make any investing decisions.
Whether you’re starting from scratch or want to brush up on the basics, a course can help demystify the jargon and teach you the fundamentals.
If you don’t want to put loads of money into your education, platforms like Coursera and Udemy offer affordable courses tailored to beginners.
For example, the “Investing for Beginners” course on Udemy costs less than a nice dinner out and could save you from making expensive mistakes later.
2. Read an Investing Book
Books are an affordable source of wisdom and the best part? They’re written by experts who’ve already made (and learned from) their mistakes.
I also think that there is nothing better than the feeling of a good book in your hands.
Why not set a resolution to read 3 investing books in 2025? To make your resolution effective, consider using a reading journal to take notes of everything that you learn as you go.
My top picks include:
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- The Intelligent Investor by Benjamin Graham—an investing classic.
- The Little Book of Common Sense Investing by John C. Bogle—a guide to index funds.
- I Will Teach You to Be Rich by Ramit Sethi—a fun, modern take on personal finance.
Set a goal to finish one investing book by March. Trust me, it’s less daunting than it sounds!
3. Build an Emergency Fund
Before you start throwing money into the stock market, make sure you have a safety net. An emergency fund is like a financial cushion—it softens the blow if life decides to throw a curveball.
As a general rule of thumb, aim to have three to six months of living expenses in a high-interest savings account.This should give you enough money to cover any last minute expenses that rear their heads!
If you’re no good at saving (we’ve all been there!), consider using an auto-saver app like Plum or Moneybox. These platforms help you by automatically saving cash into a pot on your behalf.
4. Invest £1,000
Ready to put your money where your mouth is? Setting a goal to invest your first £1,000 is a great way to start.
If you split this goal into monthly investments, you only need to stash away £84 per month (for 12 months) to reach your target.
But, where should you put your £1000?
The best option for beginners is to open a Stocks and Shares ISA or use a robo-advisor like Nutmeg or Wealthify. These platforms automate your investing and help you to diversify your portfolio, without needing to spend hours doing research.
£1000 is an achievable starting point for any investor. But, remember to only invest money that you can afford to lose!
5. Diversify Your Portfolio Across 3 Types of Investment
Ever heard the saying, “Don’t put all your eggs in one basket?” It’s golden advice for investors. Diversifying your portfolio reduces risk and increases your chances of steady returns.
Once you’ve invested your first £1000, it’s time to get comfortable with diversification.
A great way to start is to try and spread your investments across 3 different asset types. For example, you could invest in gold (to hedge against inflation), stocks (for growth), and REITs (to gain exposure to the property market without buying property).
Over time, you may want to diversify even further with alternative investments and foreign markets. However, choosing 3 areas is a great place to start!
Investing Resolutions for Advanced Investors
For seasoned investors, the new year is an opportunity to refine your investing strategy and explore new horizons.
Here are resolutions to challenge your skills and broaden your portfolio.
1. Explore Alternative Investments
Why not use January as an opportunity to get a little adventurous?
Alternative investments—like commodities, private equity, or cryptocurrency—can add a splash of excitement (and diversification) to your portfolio.
Alternative investments often have low correlation to traditional stocks and bonds, which can help smooth out your returns.
If you’ve been in the game for some time, consider allocating 5-10% of your portfolio to Bitcoin, or even art. Platforms like Masterworks let you invest in fine art without needing to be a millionaire.
Alternative investments are a fun, and smart, way to broaden your horizons in 2025!
2. Invest in International Markets
Investing in alternative investments is not the online way to diversify in 2025. If your portfolio is heavily UK-focused, you might be missing out on growth opportunities abroad.
A great New Years resolution idea for experienced investors is to invest outside of the UK.
Look into global ETFs or mutual funds that include companies from the US, Europe, and emerging markets.
Be mindful of currency risk—investing in international markets can expose you to fluctuations in exchange rates.
3. Build £50 Per Month in Passive Income
Passive income is the holy grail of investing. Whether it’s through dividends, rental income, or interest payments, earning money while you sleep is every investor’s dream.
If you have been investing for some time, now could be a good opportunity to focus on income. This might mean reshuffling your portfolio to prioritise stocks with high dividend yields (like these top dividend stocks!), or REITs that offer passive returns.
Start by aiming for just £50 per month in passive income. If you invest in dividend stocks with an average yield of 5%, you will need to invest £12,000 to reach this goal.
4. Learn How to Read Earnings Reports
Earnings reports are like the report cards of the investing world—they show how a company is performing and can help you make more informed decisions.
I wrote a great guide on how to read earnings reports like a pro which can help you to get started.
Understanding these documents is an excellent way to strengthen your investing skills and spot more advanced investment opportunities.
5. Read (and Understand) the Financial News
Staying informed is half the battle when it comes to investing. But let’s be honest: financial news can sometimes feel like it’s written in a different language.
Consider setting a resolution to set aside 10 minutes each day to read reputable financial news sources, like the Financial Times or Reuters.
Pro Tip: Use our Investing Terms Glossary to look up any jargon that you don’t understand whilst you’re reading!
How to Set Effective Resolutions as an Investor (My Top Tips!)
Resolutions are only as good as the plan behind them. Here’s how to set goals that stick:
- Be specific: “Invest more” is vague. “Invest £1,000 in an ETF by March” is actionable.
- Make them measurable: Track your progress monthly. It’s motivating to see how far you’ve come!
- Start small: Don’t overwhelm yourself with too many resolutions. Focus on one or two key goals to begin with.
- Set deadlines: A goal without a timeline is just a wish. Get out your 2025 diary and set a date for when you want to achieve your resolution.
As we step into the new year, it’s time to put these resolutions into action. Start small, stay consistent, and don’t be afraid to adjust your goals as you learn.
Remember, investing isn’t about overnight success. But, by laying solid foundations, you can use simple habits and resolutions to build yourself a comfortable financial future.
Are you interested in learning more about investing? Why not sign up to the MoneyMagpie bi-weekly Investing Newsletter? It’s free and you can unsubscribe at any time if you find it isn’t for you.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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