Four Ways to Financially Embrace the Year of the Wood Snake

The symbol for the Year of the Wood Snake and the year 2025 on a red background.

(Image credit: Getty Images)

You can learn a lot from animals, what they represent and their behaviors. What can we take from the Year of the Wood Snake as we head into the Chinese lunar new year?

In the Chinese culture, the new year is the first day of the first month in the traditional Chinese calendar. According to the Western calendar, February 16 marked the beginning of the Chinese New Year — also known as Spring Festival — the longest and most important celebration for Chinese families across the globe. Because the Chinese calendar is lunisolar, meaning it is based on both lunar and solar cycles, it is celebrated on a different date each year.

The lunar calendar also defines the 12-year repeating cycle of the Chinese zodiac, with each year named after an animal and one of the five elements (wood, fire, earth, metal and water). This cycle, the Year of the Wood Snake, began on January 29 and will end on January 28, 2026.

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In Chinese culture, there is a belief that people inherit the animal's personality traits for the year they were born. The wood snake is charming, intelligent and creative but can also be ruthless, secretive and cunning. It appears you may have to be all of these things in matters of finance.

“Since 1900, the benchmark index is down an average of 2.9% in the Year of the Snake,” according to Capital IQ, as reported by the Los Angeles Times. “It has risen in only three of the nine snake years since 1900, marking the worst performance of any of the named lunar years.”

There may be uncertainty due to President Donald Trump, tariffs and trade. “In this environment, interest rates will likely stay elevated, and trading activities will remain volatile,” Carmen Lee, head of OCBC Investment Research, told The Straits Times.

Snake personalities carry attributes such as being determined, alert, smart, well-spoken and having an element of mystery. They work in a strategic manner to achieve goals and value knowledge and relationships.

The snake represents instinct, wisdom, transformation and resourcefulness.

Here are four ways you can use the snake’s traits to achieve or maintain financial stability in 2025:

1. Trust your instincts

Everyone has faced financial challenges, and it is tempting to look at quick fixes or what appears to be a way to help you get out of debt. Be on alert for scammers who claim to be lenders, loan servicers, financial counselors or representatives of government agencies and promise to help you with your mortgage.

According to the Federal Trade Commission, “(These kinds of) scammers target desperate homeowners looking to avoid foreclosure and stay in their homes. These scammers promise they’ll get changes to your loan so you can keep your home. But they want you to pay them an upfront fee before giving you any services or getting any results. Don’t do it. It’s illegal for a company to charge you upfront for promises to help you get relief on paying your mortgage. If you’re working with a lawyer, make sure they’re licensed in the state where you live and are reputable.”

Snakes are very powerful and slither around to survey the land. They avoid danger by hissing, rattling and biting (and sometimes they’re poisonous). They know when to hide, blending in with the environment, and when to retreat. In financial matters, you need to know when to trust your gut and retreat, especially when a deal or proposition seems sketchy. Ask a financial planner, a trusted friend or a lawyer about any deal that seems too good to be true.

2. Be wise about money and investing

Sometimes money can feel like it’s burning a hole in your pocket, which can lead to ill-advised decisions. Snakes are strategic, and you can be, too, when it comes to wanting to spend money. Determine your priorities, such as your mortgage, living expenses and emergency savings.

It is also important to pay off high-interest debt. Credit card balances increased by $24 billion to hit $1.17 trillion in the third quarter of 2024, and auto loan balances increased $18 billion to $1.64 trillion, according to a New York Fed report.

Strategies to pay off debt include:

In the snowball method, you focus on paying off the smallest balance first while also making payments on other debt. This method produces a sense of accomplishment that helps encourage you to take on your other debts.
In the avalanche method, you pay off debts with the highest interest rate first, while still making payments on other debts.

Also, consider your long-term investment goals, such as creating a diversified investment portfolio. Figure out the best wealth-building products that fit into your life and goals.

3. Transform your money mindset

Snakes transform themselves by shedding their skin, symbolizing rebirth and the ability to change. Everyone has the ability to move past mistakes or blips in our financial past. Maybe you’ve struggled with a lot of debt. Or perhaps you lent money to someone who never paid you back. Forgive yourself.

Some steps to help reset your money mindset include:

Think positively and believe you can achieve anything.
Stop comparing yourself to others, such as a friend who goes on fancy trips or a relative who owns a huge home.
Look at what is contributing to your current money situation and consider how you can make it better. Do you get coffee at the coffee shop or eat out a lot? Consider making your own coffee and making food at home.
Track your spending and make a budget.
Set attainable savings goals and consider opening a high-yield savings account, which offers a higher interest rate than traditional savings accounts. This can help you earn more on deposited funds.

4. Be resourceful in retirement

Many people don’t realize there are tools and resources out there to help prepare for retirement.

“Retirement is expensive. Experts estimate that you will need 70% to 90% of your pre-retirement income to maintain your standard of living when you stop working,” according to the U.S. Department of Labor.

The snake knows how to be resourceful and take advantage of an opportunity. If an employer offers a retirement savings plan, such as a 401(k) plan, take advantage of the matching contribution and the opportunity to build tax-deferred retirement savings.

Find out whether your company has a pension plan, which would be established or maintained by the employer or by an employee organization (such as a union) or both. Pensions typically provide retirement income or defer income until termination.

Not everyone has access to a pension, and those people should take advantage of the Roth option in their employer-sponsored plan, if there is one, and catch-up contributions. A designated Roth account is a separate account in a 401(k), 403(b) or governmental 457(b) plan that holds designated Roth contributions.

According to the IRS, “The amount contributed to a designated Roth account is includible in gross income in the year of the contribution, but eligible distributions from the account (including earnings) are generally tax-free. The employer must separately account for all contributions, gains and losses to this designated Roth account until this account balance is completely distributed.”

IRAs (Roth IRAs and traditional IRAs) and Social Security benefits can be combined to fund retirement. IRA distributions are not considered earned income for Social Security reasons, but they may be taxed as income.

If you create an account with SSA.gov, you can see what your Social Security benefits are expected to be at different ages.

Finally, it’s important to understand how your savings are invested. By diversifying, or putting your money in different types of investments, you are most likely to reduce risk and improve returns.

Be inspired by the snake and give it your best to make 2025 the best year ever.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. She is a CFP® professional, a Chartered Retirement Planning Counselor℠ and a Retirement Income Certified Professional. She helps educate the public, policymakers and media about the benefits of competent, ethical financial planning.