5 Tips to Keep Your Financial Resolutions on Track in 2025

Jakarta, January 8, 2025 – The new year is a time when many Indonesians set financial resolutions to improve their lives. However, as 2025 begins, achieving these resolutions brings its own set of challenges. 

At the end of 2024, the government announced that the proposed VAT increase to 12% would apply to luxury goods. However, Indonesians should continue  to keep an eye on potential price increases on daily necessities, fuel, and the impact of new tax policies, like the vehicle tax surcharges and progressive vehicle taxes, which took effect on January 5, 2025.

 Other challenges including economic uncertainty, potential layoffs, and policy changes could further impact purchasing power. In spite of these, Indonesians should not hesitate to pursue and realise their financial resolutions. 

“With the right financial strategy, Indonesians can stay committed to their financial resolutions. The key is flexibility and realism—adjusting financial targets to current conditions and focusing on small but consistent steps to achieve long-term goals,” said Elian Ciptono, Head of Southeast Asia Expansion and Country Manager for Wise Indonesia.

Wise, a global technology company building the best way to send and manage money internationally, shares five practical tips to help Indonesians achieve their 2025 financial resolutions.

1. Monitor Price Increases in Daily Expenses

Price hikes on everyday items, delivery services, and similar services often go unnoticed during shopping. Over time, these price hikes can significantly affect your overall budget. Therefore, it’s important to carefully note the prices of your purchases and compare prices across stores or service providers to get the best deals.

2. Adjust Your Budget and Reassess Priorities

When drafting your daily budget, incorporate the latest price changes. Next, reassess your priorities and identify areas where expenses can be reduced to help you ensure your spending is within budget. 

3. Build an Emergency Fund

If you don’t already have one, make an emergency fund a top financial resolution this year. During emergencies, this fund ensures you won’t have to dip into money allocated for other needs. With an emergency fund in place, you’ll feel more secure and stay consistent with your financial goals.

4. Use smart platforms for managing international financial needs

If your financial goals involve international money transactions, such as sending remittances or paying tuition fees abroad, consider using platforms like Wise. Wise offers lower fees and better exchange rates compared to traditional services. Monitor currency exchange rates and try to make the transaction or convert money when the rates are favorable to avoid high costs from sudden transfers.

5. Don’t Hesitate to Adjust Your Resolutions with More Realistic Targets

Financial challenges, such as economic uncertainties, may require flexibility with your goals. Identify which targets are most important and prioritise them. Break down your annual goals into smaller, more manageable ones, such as quarterly or monthly targets, to stay motivated and effectively track progress.