New Year, New Financial You
Happy New Year to you and welcome to 2025. The new year often carries the opportunity of new beginnings and creating resolutions to better yourself. Many of my past New Year’s resolutions have been recycled over the years and consist of the typical subjects: hitting the gym, eating better, and finally completing that list of projects around the house. But an often-forgotten resolution that needs to be considered is financial health. As we embrace 2025, including money goals in your resolution list is not just smart, it’s essential for long term wellbeing.
Financial planning might not give you the immediate satisfaction of completing a workout, but its impact can be just as transformative. Whether you are dreaming of homeownership, planning for retirement, or simply wanting to build a stronger financial foundation, now is the perfect time to set your financial compass for the year ahead.
Start by preparing a review of your current financial situation. Review your spending patterns from 2024, identify areas where money might be slipping through the cracks, and be honest about your financial habits, both good and bad. Use this as your starting point to establish your financial New Year’s resolutions.
Next, set SMART financial goals that are Specific, Measurable, Achievable, Relevant, and Time bound. Instead of vague intentions like “save more money,” try “save $200 monthly by reducing dining out and $100 monthly by reducing entertainment expenses.” These types of goals make them actionable and trackable.
Consider these areas for your financial resolutions:
- Build or boost your emergency fund to cover 3 to 6 months of expenses.
- Increase retirement contributions by at least 1% of your income.
- Reduce high interest debt using the snowball or avalanche methods.
- Review and adjust your investment portfolio allocation.
- Update or create essential documents like wills and healthcare directives.
Remember, financial health is not about drastic changes, but about sustainable habits. Start small, celebrate progress, and adjust your goals as needed. Consider working with a financial professional who can provide personalized guidance and help keep you accountable.
Your future self will thank you for making financial wellness a priority this year. After all, the best time to plant a tree was 20 years ago. The second-best time is now.
Want professional guidance on your 2025 financial journey? Consider consulting a local CPA or CERTIFIED FINANCIAL PLANNER® professional. We are here to help you turn those financial resolutions into reality.
Chris Laughhunn, CPA, CFP® is a Tax & Accounting Principal for Keller & Associates CPAs, PLLC and an Associate Advisor for Keller Wealth Advisors.
Published in the Victoria Advocate.
