Article What it means to be financially thriving

To be ‘financially thriving’ could be more than having money in the bank.

True financial wellbeing involves achieving a sense of stability and preparedness that allows you to live with peace of mind. Our research has found that we need a combo of both money and mindset building blocks to be financially ‘well’ – or, in this case, ‘thriving’.¹

This means having the resources to comfortably sustain your desired lifestyle, plan for the future, and weather any unforeseen circumstances.

This guide aims to provide valuable insights into how you could become financially thriving, and improve your quality of life.

What it means to be financially thriving

The concept of being financially thriving infers having a stable income, with manageable debt, sufficient savings, and investments – likely along with a thought-out plan for the future. No matter how far away retirement might feel right now.

It’s possibly more about being in control of your finances, rather than being controlled by them.

Financial stability, and worrying less about money, could have an impact on your mental health – leading to a more positive outlook on life and better overall wellbeing.

The rise of financial positivity

Thankfully, more people are starting to feel more optimistic about their finances already.

Our latest Financial Priorities research found that three-fifths (60%) of people in the UK are already feeling positive about their finances for 2025, which is up from 2024.²   

In contrast, the survey of 2,000 adults showed that just over a third (35%) are feeling negative about their finances for 2025 – this has fallen since 2024.

‘Unexpected expenses’ is the top financial concern. But, when asked for financial priorities, ‘enjoying life’ (34%) was on top for UK adults going into 2025. This was followed by ‘building up emergency savings’.²

To be financially thriving could be just that: to feel positive about managing financial expectations of both today and tomorrow, all while enjoying life. Here’s some tips on how you could achieve that.

Budgeting and managing expenses

Firstly, creating a realistic budget could be the best place to start. Begin by listing all your sources of income and detail your monthly expenses.

Use this to understand your spending habits and track every expense (no matter how small) to get a clear picture of where your money’s going.

Once you have a clear understanding of your expenses, look for unnecessary costs – like subscriptions you don’t use, or ‘those’ takeaway coffees – and direct these savings towards your financial goals, instead. This could top up your savings accounts or pensions (more on that later).

Building an emergency fund

An emergency fund is a financial safety net that can cover unexpected expenses such as medical bills, car repairs, or job losses. Having an emergency fund can help with financial security and peace of mind – and could avoid the stress of living pay-day to pay-day.

Everyone’s circumstances are different, but it’s recommended to have at least three to six months of living expenses saved to help keep you afloat in an emergency.³

Consider opening a separate savings account specifically for your emergency fund to avoid the temptation of spending it and start to learn to live within your means. Check out our article on how to build an emergency fund.

Managing debt

Not all debt is created equal – and it’s important to remember that debt isn’t a bad thing.

You could start by paying off a number of manageable small debts first, or choosing a chunky piece of debt. It could also be worth prioritising paying off high-interest debt to begin with to save money on interest payments.⁴

If you’re struggling with debt, consider getting help from a financial adviser – they can provide personalised advice and help you create a plan to get out of debt. MoneyHelper a free and impartial government-backed service can point you in the right direction.

Read our article on how to bounce back after debt and improve your financial resilience.

Invest in your future

Planning for retirement is essential for long-term financial thriving. The earlier you start, the more time your money potentially has to grow.

Contributing to your retirement from an early age (yes, even if you’re not thinking about it yet) could help you grow wealth and financial wellbeing over time.

If you’ve been auto-enrolled into your workplace scheme, take advantage of any salary sacrifice schemes on offer. These accounts offer tax benefits and could help you build the retirement fund you’re aiming for.⁵

Setting up a private pension or a Lifetime ISA could also help you plan for the future – making the prospect of later life more exciting. It's important to remember that the value of any money paid into a pension or ISA can fall as well as rise, and you may get back less than you paid in.

No matter your age, determine how much you’ll need to retire comfortably and create a plan now to achieve that goal. Consider factors such as your desired retirement age, lifestyle, and healthcare costs. For more information, read our step-by-step guide on how to plan for your retirement.

Check out the Retirement Living Standards for an accurate depiction of how much you could need for your ideal retirement – or speak to a financial adviser for advice. This will come with a charge, though.

Being financially thriving is a journey that requires discipline, planning, and continuous effort. But remember, the key to it is making informed decisions and staying committed to your financial goals.