Written By: Ian Gallagher

As the calendar flips over to a new year, millions of Americans make New Year’s resolutions to improve various aspects of their lives—better health, more travel, or perhaps more time with loved ones. But here’s the hard truth: only 9% of people who set New Year’s resolutions actually follow through and achieve them. This year let’s change that. Why not use this time to get your finances in order and start the year with a solid financial plan?

It’s easy to make resolutions without a clear path to success, but with a little effort and intention, you can set yourself up for financial success in 2025. Here’s how to make the most of your financial check-up as we step into the new year:

1. Give Yourself a Financial Check-Up

Just like you might schedule a physical check-up at the doctor’s office to assess your health, the new year is the perfect time for a financial check-up. Take a deep dive into your current financial situation:

• What are your savings looking like?
• How much debt are you carrying?
• Are your investments performing as expected?

Start by reviewing the past year. What went well financially? What could have been better? Understanding where you stand financially is the first step for making meaningful progress towards a positive financial future.

2. Update Your Savings Goals

If you haven’t already set up a savings goal, now’s the time to start. Whether you’re building an emergency fund, saving for a big purchase, or preparing for the future, having a specific goal is key to staying on track. Look at your income and expenses and determine a reasonable amount you can save each month. If you already have savings goals, take this time to assess if they need adjustment for the coming year.

Perhaps you can aim for an emergency fund that covers six months of living expenses or start saving for a down payment on a house. Having a clear, measurable target will help you stay motivated and focused.

3. Set a Debt Reduction Goal

One of the most powerful ways to improve your financial health is by tackling debt. Make it a priority this year to set a clear goal for paying down loans and credit card balances. Whether it’s paying off your credit card, car loan, or student loans, setting a target amount to pay down can help you stay focused.

Be realistic. Don’t commit to paying off everything in one year if it’s not feasible. Start with manageable amounts—perhaps focus on high-interest debt first—and create a plan that will allow you to achieve steady progress.

4. Contribute to Your Retirement Plan

One of the most important aspects of your financial future is retirement. Whether you’re in your 20s or your 50s, it’s never too early—or too late—to start saving for retirement. If you have access to a 401(k) or other retirement plan through your employer, consider contributing as much as you can to take advantage of any employer matching programs.

Even if you don’t have an employer-sponsored retirement plan, look into individual retirement accounts (IRAs) or other options to ensure you’re building wealth for your golden years. This year, aim to make consistent contributions to your retirement plan, even if it’s just a small percentage of your income.

5. Rebalance Your Portfolio

If you’re already investing, it’s important to take the time to rebalance your portfolio each year. Over the course of the year, your investments may have shifted in value, and your asset allocation might not align with your goals anymore. A good rule of thumb is to review your portfolio annually and make adjustments to stay on track with your long-term objectives.

Rebalancing can involve buying or selling investments to return to your desired allocation of stocks, bonds, or other assets. If you’re unsure how to proceed, consider consulting with your financial advisor to help guide your decisions.

6. Review Life Insurance Needs

As your life circumstances change, so do your life insurance needs. A new year is a good time to review your policy and determine if it still meets your needs. Have you had any major life changes like getting married, having children, or buying a house? These milestones might require an update to your life insurance coverage to ensure your loved ones are properly protected.

If you don’t yet have life insurance, consider whether it might be a good idea to explore options, especially if you have dependents or significant financial obligations.

7. Set Realistic Financial Goals

The most important tip for financial success this year is to set realistic and achievable goals. It’s tempting to aim for big, audacious financial changes, but taking small, consistent steps will lead to more lasting results. Setting goals like “save $100 a month” or “pay off one credit card this year” is much more manageable than trying to tackle everything at once.

Remember, progress is a journey, not a race. Instead of focusing on perfection, focus on improving. You’re much more likely to succeed by creating a plan you can realistically follow throughout the year.

Learn From the Past, Focus on the Future

As you enter this new year, reflect on your previous financial habits and use those lessons to guide your resolutions. Did you set financial goals last year? If so, what worked? What didn’t? Learning from past mistakes or successes will empower you to create more realistic, attainable goals this year.

Incorporating these steps into your new year’s resolutions can help you improve your financial situation and build a brighter future. By updating savings goals, tackling debt, contributing to retirement, and reviewing your insurance, you’ll be well on your way to a more secure and prosperous 2025.

The new year is full of promise and with a clear, focused financial plan in place, you can make this the year you take control of your money and your future. Here’s to achieving your financial goals in 2025!

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