(Almost) every financial lesson learned in 2024

A couple months into 2025, it’s safe to say that the financial landscape of the UK in 2024 was shaped by a combination of ongoing global challenges and domestic shifts. With the aftermath of inflationary pressures to evolving investment trends, several key financial lessons have emerged from the tumultuous year. Reflecting on these will not only help individuals and businesses make smarter decisions moving forward but also provide insight into the resilience and adaptability required in today’s economic climate.

Inflation and the Need for Strategic Saving

Source: The Office for National Statistics, 2025

The lingering effects of inflation, which peaked in previous years as above, continued to pose challenges in 2024.

While inflation rates have moderated somewhat, the reality is that prices remained high for essentials, from food and energy to clothes and baby products. For individuals, this has underscored the importance of maintaining a strategic approach to financial planning.

Many realised that it is no longer adequate to rely solely on a traditional savings account with a relatively low interest rate. They instead moved towards a diversified savings and investment portfolio. It’s all about purchasing power – which you lose the longer you leave cash vulnerable to inflation.

Throughout the year, it became painstakingly clear for businesses in the UK that cost management can be as critical as revenue. This includes increased diligence for operations, suppliers, and office necessities.

Resilient property

The UK property market experienced its own set of unique complexities in 2024. While the housing boom of the post-pandemic cooled slightly, property remained a key asset, with many wealthy individuals adding a second property to their portfolio.

The affordability crisis has, however, highlighted stark divides in homeownership prospects, particularly among younger generations.

The lesson here is that real estate continues to be a robust investment, but it’s no longer a “safe haven”, with many wealthy individuals having to reallocate parts of their financial plans to support their children financially with the property process.

Of course, Government schemes, such as Help to Buy and shared ownership, remained instrumental in supporting first-time buyers, but the broader picture indicates a need for more innovative solutions to tackle housing inequality. For potential investors, the emphasis shifted toward a more diverse rental market with a focus on cities outside of historically popular London, where returns are on offer without the premium price tag.

Digital Transformation and FinTech Disruption

In 2024, the financial services sector saw even more advancements in digital transformation.

Fintech startups continued their trend of disrupting traditional banking and investment practices, with the landscape being increasingly defined by technological innovation.

As such, the UK highlighted the need for traditional services to modernise in line with the expectations of clients, offering a more flexible digital-first solution. It also presents a new opportunity for increased accessibility to financial freedom – greater autonomy for individuals who may otherwise be unable to access financial advice.

Interest rates and borrowing

Interest rates were a hot topic in 2024; the Bank of England adopted a cautious approach in light of ongoing inflation concerns.

For homeowners and businessowners this reinforced the need to carefully plan (and stick to)a debt repayment schedule.

It makes a case for proactive financial planning.

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.