Looking to make the most of your finances in the new year? Some may think taking financial risks or chasing trends is key to maximizing potential.
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But, according to financial advisor at 4 Generations Wealth Management, Michael Fiammetta, the best thing one can do next year is the same thing he or she can and should be doing every year: master the basics.
Here are 10 awesome things you can do for your finances in 2025 and every subsequent year thereafter.
Earning passive income doesn’t need to be difficult. You can start this week.
Contributing as much as you can as early as you can to your 401(k) or IRA — within annual limits — “is one of the smartest moves you can make for your future self,” according to Fiammetta.
This is because nothing helps grow your retirement savings over time like compound interest. Can’t afford to contribute the maximum amount? That’s okay. Fiammetta argued that boosting contributions by a mere 1% in 2025 will impact your financial future.
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If your investments are concentrated in one sector or asset class, consider diversifying stat.
“A diversified portfolio–spanning stocks, bonds, real estate, and more — reduces risk and positions you for long-term success,” said Fiammetta. This way, if one or two investments don’t perform well, others can balance out the loss.
No one likes to think about it. But what would happen to your money if you meet your untimely demise? In the absence of an estate plan, the state would determine who gets your assets based on unique intestacy laws that establish priority order beginning with closest living relatives.
But what if you wish to dictate particular amounts to specific individuals, or you prefer to pass assets to extended family and charitable organizations? Make sure a trust or will is put in place. Having a say in how your money is divided up ensures your preferences are honored and your legacy is carried on. It could also help loved ones avoid probate.
Don’t assume that just because you put an estate plan in place years ago, your job is done. Life circumstances change. As do state and federal laws.
“Life changes like marriage, children, or even retirement mean it’s worth reviewing this annually,” said Fiammetta. This will ensure your money goes to the right people.
