As the new year quickly approaches, people are readying their New Year’s resolutions and goals, hopeful for a brighter year and a new, improved self. But you don’t have to wait until January to start making a change.
There are many steps you can take right now to get ahead on your goals and start 2025 off with a more impactful bang — especially when it comes to your finances. From designing a comprehensive financial game plan to automating your savings and investments, taking these steps now will ensure you set yourself up for success in 2025.
For deeper insights into these steps and more, read on to hear from the members of Kiplinger Advisor Collective and their best tips for a prosperous new year.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Begin with the end in mind
“By starting with, ‘What do I want to achieve in 2025?’ you can then calendar key dates, automate key actions to save for your goal and be more on the lookout for pain points that may cloud the road ahead. It's easier and more fun to achieve goals when you're specific, set milestones, think through what could get in the way and automate whatever possible.” — Joe Saul-Sehy, Stacking Benjamins
Review and reassess your goals
“Now is a great time to review the progress you have made this year on your goals. Reassess those goals based on where you are financially and see if you need to reprioritize based on events that have happened. If you just recently got married or had a child, those are significant life events that necessitate you update your goals to make sure you are ready for this new phase of life.” — Mario Hernandez, Longevity Wealth Management
Design a comprehensive financial game plan
“The most important step anyone can take to protect and improve their financial health is to create a comprehensive financial game plan. A solid financial plan starts with understanding your overall financial picture. Your credit report provides a holistic view of your financial life. Reviewing this will give you the clarity to make informed decisions about protecting your financial health.” — Rod Griffin, Experian
Implement a defined benefit pension plan
“For individuals with regular recurring income from their business of $400,000 or more, consider implementing a defined benefit pension plan. This can shield substantial income from tax. The contributions can be made by September 15 of the following year, but the plan must be in place before December 31 of this year. Special planning may be needed for those with a high number of employees.” — John Goralka, The Goralka Law Firm
Create a monthly household budget
“Creating a monthly household budget sounds so obvious as to be ridiculous, but I know many seven-figure earners who get into serious financial trouble because they’ve budgeted carefully for their business but not themselves. With secure online tools that do the math for you, there's simply no excuse for going into the new year without a personal budget.” — Howard Dvorkin, Debt.com
Automate savings and investments
“Automate savings and investments aligned with specific 2025 goals. First, define clear financial objectives (e.g., emergency fund, retirement contributions) and then set up a budget that allocates funds toward these priorities. Automate monthly transfers to savings and investment accounts to make consistent progress without needing to think about it. Regularly review progress quarterly to stay on track.” — Amrita Choudhary, Wasabi Technologies
Understand your cash flow cycle
“Spend time understanding your cash flow cycle for the upcoming quarters. How much cash do you have and how fast are you spending it? For business owners, having a robust rolling forecast, encompassing financials and operational logistics, is key to setting your business up for success. Using tools like data visualization dashboards can make these numbers more clear and actionable.” — Dan DeGolier, Ascent CFO Solutions
Cut down or eliminate debt
“Take a hard look at your higher-interest consumer debt and plan to pay it down or off entirely. This is crucial if you hope to buy a home, as many loans have specific debt-to-income ratios you must meet to qualify. Your credit score may also improve if you pay down debt. Not only will cutting debt improve your odds of getting favorable mortgage terms, but it'll also free up cash for closing costs.” — Laura Ostrem, Success Mortgage Partners, Inc.
Consider the life you really want
“As you set goals for the year, think past the numbers for financial goals. Instead of aiming for financial metrics, consider the broader life you want to create and how money can support it. For example, think about the work-life balance you want, what that means for the money you'll earn and how to shape your other goals around the impact that has on your financial situation.” — Dana Miranda, YOU DON'T NEED A BUDGET
Establish a habit of regular financial reviews
“Taking the time to assess your finances consistently — monthly, quarterly or at least twice a year — gives you a clear picture of where you are and keeps you focused on where you’re headed. You need to focus on where you want to be and do routine checks to see what adjustments might be needed.” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
Make a small increase to your 401(k) contributions
“One small step anyone can take to set themselves up for success in 2025 (and beyond) is to increase their 401(k) contributions by just 1%. Many people will get a pay raise in the new year, whether due to inflation or their performance. Since you have yet to get the pay increase, you won't notice the hit to your spending. To paraphrase advertising exec Rory Sutherland, you won't feel poorer, just less rich.” — Michael Gainor, Wells Fargo Advisors
Reduce your monthly bills
“Hack your monthly bills by canceling unused subscriptions, bundling services, increasing insurance deductibles, negotiating rates and lowering your data plan. Compare rates with competitors and switch to save and reduce costs. For example, online-only wireless carriers like Mint Mobile have more affordable plans such as Mint Kids with unlimited talk, text and 5GB of data for just $15 per month.” — Andrea Woroch, Woroch Media Inc. / Andrea Woroch
Related Content
- For Financial Planning Success Now, Start by Looking at the Past
- What’s Standing in the Way of Your Successful ‘Money Mindset’?
- Are Your Financial Plan and Adviser the Right Fit for You Now?
- Five Year-End Financial Planning Strategies for a Down Market
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
IRS Says You Made a Tax Return Mistake? A New Law Could Help You Fight BackTax Law Updated taxpayer protections change what the IRS must explain on error notices and how long you have to respond.
