|

Start 2025 On The Right Financial Foot

ByAshley Hours Categories Budgeting, Financial Planning

The start of a new year is a natural time to reflect, reset, and realign with your financial goals. Whether you’re aiming to build savings, plan for a major life milestone, or boost retirement savings, setting financial New Year’s resolutions can help you reflect on the year prior, benchmark your financial status, and set the tone for a prosperous year ahead. Here’s how to approach the process thoughtfully and effectively.

Before diving into new goals, take time to review your financial journey over the past year. Reflection helps you identify what worked, what didn’t, and what adjustments you need to make moving forward.

  • Celebrate Wins: Acknowledge your financial achievements, no matter how small. Did you increase your emergency fund, pay down debt, or stick to a budget? Celebrate these wins to build momentum.
  • Identify Challenges: Look at areas where you struggled. Perhaps you overspent on discretionary items, didn’t save as much as you planned, or failed to track expenses/stick to your budget. Pinpointing these challenges can help in creating a plan to avoid them moving forwards.
  • Review Spending Patterns: Use budgeting tools or bank statements to analyze your spending habits. Identify trends and areas for improvement.
  • Evaluate Progress Toward Goals: Did you achieve the financial goals you set last year? If not, why?

Once you’ve reflected on the past year, it’s time to set new financial resolutions. Using the SMART framework ensures your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Distinguish between wants versus needs as you map out your SMART goals for 2025. With your goals in place, take actionable steps to lay a strong foundation for the year ahead.

Whether it’s creating a financial plan for the first time, adjusting/increasing your retirement savings for the year, automating after-tax savings and payments to ensure accuracy and consistency, or seeking professional advice, any small or large step to address and plan for your financial year is a strong start to the year. Remember, momentum is important and consistency throughout the year is the key to staying on track.

The new year offers a fresh opportunity to take charge of your financial future and get started on a strong note. By reflecting on the past, setting SMART goals, and creating a solid plan for the year ahead, you’ll be well-positioned to take on the year thats ahead. Remember, progress takes time, and consistency is key. If you are interested in creating a financial plan or strategy for 2025, email info@shermanwealth.com or schedule a complimentary intro call here.