January Financial Checklist: Best Ways To Kick Start 2025

ByAshley Hours Categories Family Finances

In our last blog we discussed the importance and power of setting financial intentions to set the tone for a successful financial year ahead. Today, we want to dive deeper into a few areas you can work on to start the year off on the right foot. January is the perfect time to take control of your finances and start outlining your financial checklist. A fresh start brings opportunities to evaluate your goals, review your progress, and make adjustments to ensure financial success. Let’s take a look at our January financial checklist to kickstart your year:

1. Set Financial Goals for the Year

  • Reflect on what you want to achieve financially in the next 12 months.
  • Establish SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound.

2. Review Your Budget

  • Analyze last year’s spending and identify areas for improvement.
  • Update your budget to reflect any changes in income or expenses, and most importantly, sit down and put pen to paper to create a real budget.
  • Allocate funds to various buckets within your monthly budget for upcoming events or major purchases.

3. Evaluate Your Savings

  • Check the balance of your emergency fund and set a goal for your desired amount.
  • Plan contributions to savings accounts for specific goals, like vacations, home renovations, or retirement.
  • Consider automating your savings to ensure consistency.

4. Tackle Debt Strategically

  • List all outstanding debts, including balances, interest rates, and minimum payments.
  • Prioritize high-interest debt and create a systemized plan to attack it while also tackling other goals.
  • Create or adjust your debt repayment plan to stay on track.

5. Review Investment Portfolios

  • Assess the performance of your investments over the past year.
  • Ensure your portfolio aligns with your current risk tolerance and financial goals.

6. Plan for Tax Season

  • Organize receipts, tax forms, and other necessary documents.
  • Contribute to tax-advantaged accounts, such as IRAs or HSAs, before the April 15th deadline.

7. Update Insurance Policies

  • Review your health, life, home, and auto insurance policies.
  • Ensure you have adequate coverage and shop around for better rates if needed.
  • Update beneficiaries or overall estate plans if there’s been a major life change since you’ve last reviewed.

8. Assess Retirement Plans

  • Review contributions to retirement accounts like 401(k)s or IRAs.
  • Increase contributions if possible to maximize employer matches and account for updated 2025 retirement contribution limits.
  • Evaluate whether your retirement savings are on track with your long-term goals.

9. Automate and Simplify

  • Set up automatic payments for recurring bills to avoid late fees.
  • Automate savings and investment contributions to ensure consistency.
  • Consolidate accounts where appropriate to streamline management.

12. Educate Yourself

  • Commit to improving your financial literacy and those around you.
  • Empower yourself and your peers to push the ball forwards on making smarter and more informed financial decisions.
  • Subscribe to personal finance blogs or podcasts to stay informed. Check out our podcast Launch Financial and other blogs!

13. Celebrate Wins

  • Reflect on last year’s accomplishments and take pride in your progress.
  • Reward yourself for reaching milestones, but stay mindful of your budget.

By tackling or adding these checklist items to your agenda this month, you’ll begin to set a solid foundation for an organized and strong year ahead. Financial planning is an ongoing process, so revisit your goals and adjust as needed throughout the year to stay on track. If you have any questions in building your yearly financial checklist, email info@shermanwealth.com or schedule a complimentary intro call here.