January 17, 2025

As the new year begins, many of us turn our attention to goal-setting. Whether it’s losing weight, training for a marathon, or spending more quality time with loved ones, the start of a new year feels like the perfect time to make our lives better.

Financial goals are often high on the list. In fact, a Fidelity study revealed two-thirds of Americans who set resolutions last year had money top of mind. It’s no wonder January is recognized as Financial Wellness Month!

If improving your financial health is one of your goals for 2025, consider the strategies below to get started on the right track.

Tackle Debt Strategically:  Debt is a common part of life, but managing it effectively is key to financial well-being. As those post-holiday credit card statements roll in, make a plan for tackling debt. 

  • Take Action:  There are two common approaches:  the snowball method and the avalanche method.  One method focuses on staying motivated by paying off small debts quickly.  The other prioritizes paying off high-interest debt first.  Remember… one less dollar of debt brings you one step closer to financial freedom.

Boost Your Savings:  After the holiday season of spending, shift your focus to saving. Whether your goal is a dream vacation, a down payment on a home, or an emergency fund, having a plan can make it achievable.

  • Take Action:  Define your savings goal and be specific about what you’re saving for and how much you need.  Then set a timeline broken down to manageable milestones, like save $1000 in my emergency fund by Memorial Day.  Then put it on auto-pilot by setting up automatic transfers to a savings account earmarked for your goal. 

Embrace Budgeting as a Tool for Freedom:  Budgeting doesn’t have to feel restrictive. Think of it as a spending plan that empowers you to allocate your income toward the things that matter most.

  • Tips for effective budgeting:  Identify your categories including essentials like food, housing, and transportation, but also allow for entertainment and savings.  Then track your spending.  Consider using apps and tools to monitor where your money goes.  And prepare to make adjustments because life changes and your budget will too.

Check and Improve Your Credit Health:  Your credit report is an essential tool for managing your financial life. Reviewing it annually can help you spot errors and protect against fraud.

  • Take Action:  Check your credit report at www.AnnualCreditReport.com.  This government-sponsored site allows you to obtain a free report each year from the three major credit bureaus.  Rather than requesting all three at the same time, consider getting a report from one bureau every four months to monitor your credit throughout the year.  Review the reports for errors and it something looks incorrect, file a dispute immediately.

Protect Your Identity:  In a digital world, protecting your personal information is more critical than ever. A few simple steps can safeguard your identity.

  • Take Action:  Monitor your accounts regularly for suspicious activity.  Avoid sharing your Social Security number unless absolutely necessary.  Ensure websites are secure (look for “https”) before entering personal information.  Be cautious with email and don’t open suspicious messages or click on unknown attachments.

Revisit Your Financial Plan After Major Life Changes:  Life is dynamic, and your financial plan should be, too. Significant milestones—such as a career change, a new baby, or approaching retirement—can impact your goals.

  • Review these things annually:  Insurance coverage, Retirement accounts and savings rates, Estate planning documents life your Last Will and Testament

Grow Your Financial “Know How”:  Knowledge is power when it comes to your finances. From books and podcasts to conversations with an advisor, there are countless resources to help you learn more about managing your money.

  • Start here:  Pick a topic that interests you, like investing or retirement planning.  Then, discuss your interest with a friend, family member or advisor to deepen your understanding and get recommendations for resources to learn more.

Improving your financial health doesn’t have to be overwhelming. Start small—pick one or two strategies from this list and commit to them. With consistent effort, you’ll feel better about how your money choices are making your life better.  And if we can help, just reach out!

Here’s to a prosperous year ahead!