5 Financial Resolutions for the New Year
As the new year begins, it’s the perfect time to set financial goals to help you grow and protect your wealth. Whether you're planning to build on your current assets or simply become more disciplined with your finances, these five resolutions can help you achieve financial security and peace of mind.
1. Reassess Your Budget and Spending Habits
In 2025, take a closer look at your monthly expenses. Even small tweaks can lead to big savings. Start by reviewing subscriptions, lifestyle costs, and discretionary spending to identify areas where you can trim back. Allocating more to your savings or investments will make a noticeable difference over time. You may discover opportunities to invest or save more efficiently by tracking your spending.
2. Maximize Retirement Contributions
One of the best ways to ensure long-term financial success is by maximizing contributions to your retirement accounts, such as IRAs and 401(k)s. If you haven’t already, consider increasing your contribution percentage or setting up automatic contributions to make it easier to stay on track. And if you're 50 or older, take advantage of catch-up contributions, which allow you to save even more for retirement, helping you close any gaps in your retirement planning.
3. Automate Your Investments
One of the easiest ways to stay disciplined with investing is to set up automated contributions to your investment accounts. Automation takes the guesswork and temptation out of investing, ensuring you consistently put money toward your financial future. Whether weekly, monthly, or quarterly, automating your investments can help you stay on course. Regular, automated investments can help average out price fluctuations in the market.
4. Build or Strengthen Your Emergency Fund
Financial security isn’t just about investing—it’s about having enough liquidity to handle life’s unexpected expenses. If you haven’t already, aim to build an emergency fund that covers three to six months of living expenses. This will give you peace of mind and prevent the need to tap into your investments during turbulent times. If you’re self-employed or have a fluctuating income, consider saving up to a year’s worth of expenses.
5. Review Estate Planning and Insurance Needs
Take the time this year to update your estate planning documents—wills, trusts, and powers of attorney. Looking over these key documents ensures that your assets will be distributed according to your wishes, reducing stress for your loved ones during difficult times. Review your life, home/renter’s, and health insurance policies to be sure your coverage is adequate and aligns with your current life stage.
The new year is an opportunity to fine-tune your financial strategy, no matter where you stand on the wealth spectrum. By taking proactive steps today, you'll be well on your way to building a more secure financial future in 2025 and beyond. Whether automating your investments, strengthening your emergency fund, or reviewing your estate plan, setting and sticking to these financial resolutions can help you stay focused and confident as you pursue your financial goals.
