As the calendar turns to 2025, it’s the perfect time to focus on setting intentions for the year ahead. While many resolutions fade as quickly as they are made, financial intentions should be grounded in actionable steps which can create lasting benefits. Here are some simple habits to help you start the year off right and build momentum toward your financial goals.
- Automate Your Savings
Make saving effortless by setting up automatic transfers to your investment account, or your retirement accounts such as a 401(k) or IRA. Even small, consistent contributions can compound over time, helping you build financial security without needing to think about it regularly. You can also automate deposits to your savings such as bank accounts or mutual funds.
- Review Your Budget
A new year is a great time to review your budget. Does it still align with your goals and priorities? Look for areas where you can trim unnecessary expenses, such as unused subscriptions or dining out, and reallocate those funds toward savings or debt repayment. Also, review your insurance premiums and work with your agent to determine if they can be reduced.
- Check Your Financial Health
Conduct a quick financial checkup:
- Review your credit report for accuracy.
- Assess your emergency fund—aim for at least three to six months’ worth of living expenses.
- Evaluate your insurance policies to ensure adequate coverage for your needs.
- Review your will, living trust, and beneficiary designations to make sure they are up to date.
- Set SMART Goals
Instead of vague resolutions, set SMART financial goals—Specific, Measurable, Achievable, Relevant, and Time-bound. For example, “Save $5,000 for a summer vacation by July 1” is a clear and actionable goal.
- Celebrate Small Wins
Progress, no matter how small, deserves recognition. Whether it’s paying off a credit card balance, reaching a savings milestone, or sticking to your budget for a month, celebrate your achievements to stay motivated.
Looking Ahead
In addition to implementing these habits, consider attending our upcoming webinar, Top 10 Planning Opportunities for the New Year, where we’ll explore advanced strategies to help you make 2025 your best financial year yet. The webinar will be held on January 21 at 4:00 pm ET. Don’t miss this chance to gain valuable insights for your financial future. Click here to register for the zoom webinar.
Here’s to starting the year right!