Meredith Moore is the Founder & CEO of Artisan Financial Strategies LLC. She is fascinated by the interplay between gender, money and power.
As the new year begins, many of us focus on self-improvement goals like health, career growth or family time. Yet one critical area often overlooked is financial well-being. A new year is the perfect time to reassess your financial habits and set the stage for a prosperous future. Whether you’re starting fresh or fine-tuning an already solid financial foundation, these actionable financial resolutions will help you reset, refocus and achieve your goals.
Get clear on your goals.
Financial success begins with knowing what you want to achieve. Set short-, medium- and long-term goals to guide your decisions throughout the year. Examples include:
Short-term: Build an emergency fund with three to six months’ worth of expenses.
Medium-term: Save for a down payment on a home or a dream vacation.
Long-term: Max out contributions to your retirement accounts or create a plan for financial independence.
Goals should be specific, measurable, achievable, relevant and time-bound (SMART). For example, “save $10,000 for an emergency fund by December” is much more actionable than “save money.”
Create or update your budget.
A budget is your financial GPS, helping you track income and expenses while ensuring you’re aligned with your goals. Here are three easy steps to create or refresh your budget:
1. Start with a clear picture of your current financial situation, including income, fixed expenses and discretionary spending.
2. Use the 50/30/20 rule, in which 50% of your income goes to needs, 30% goes to wants and 20% goes to savings or debt repayment.
3. Review last year’s spending and identify any areas to cut back or reallocate.
Free apps or even a simple spreadsheet can help you stay organized.
Automate, automate, automate.
Automating your financial resolutions can help you more easily maintain them. Consider these steps:
• Set up automatic transfers to your savings and investment accounts.
• Direct a portion of your paycheck into a high-yield savings account.
• Automate contributions to retirement accounts, such as a 401(k) or IRA.
• Use round-up apps to passively grow your investments.
Set it and forget it works wonders for growing your financial safety net.
Review and optimize your debt.
Debt can hinder your financial progress, but a strategic approach can help you regain control:
Prioritize high-interest debt: Use the snowball or avalanche method to pay off credit cards and other high-interest loans.
Refinance loans: Explore options to lower interest rates on student loans or mortgages.
Avoid new debt: Be mindful of impulse purchases and unnecessary credit use.
By addressing debt head-on, you free up resources to focus on your goals.
Review your retirement savings.
With retirement savings, the sooner you start, the better. If possible, aim to increase your contributions this year:
• Max out your 401(k) or IRA contributions if you haven’t already.
• Take full advantage of employer matches—it’s essentially free money.
• Reassess your investment strategy and ensure your portfolio is diversified and aligned with your risk tolerance.
Evaluate your insurance coverage.
Protecting your financial well-being is as important as building it. Look over your insurance policies and make sure you have sufficient coverage for all types relevant to you. Update beneficiaries and coverage levels to reflect major life changes.
Plan for taxes early.
Avoid the last-minute tax scramble by preparing throughout the year. Organize financial documents, including income statements, charitable donation receipts and investment reports. Consult with a tax professional to explore deductions, credits and strategies to minimize your tax liability. Adjust withholdings to ensure you’re not overpaying or underpaying.
Incorporate philanthropy into your financial plan.
Giving back can be both personally fulfilling and financially beneficial. If philanthropy is part of your goals, consider:
• Opening a donor-advised fund (DAF) for tax-efficient charitable giving
• Setting aside a percentage of your income for causes that matter to you
• Volunteering your time to create an even greater impact
Commit to financial education.
Continuous learning is key to financial success. Make it a resolution to enhance your financial literacy. Read books and articles or attend webinars on personal finance topics. Follow reputable financial advisors and thought leaders for insights. Engage with tools and resources that simplify financial decision-making.
Track your progress.
Resolutions are only as good as your commitment to them. Schedule regular check-ins (monthly or quarterly) to evaluate your progress:
• Are you on track with your goals?
• Have your priorities or circumstances shifted?
• What adjustments are needed to stay aligned with your vision?
Tracking your progress not only keeps you accountable but also builds confidence as you see results.
Get a fresh start for a bright future.
The beauty of financial resolutions is that they’re entirely within your control. By setting clear goals, staying disciplined and making incremental changes, you can achieve financial stability and set the tone for a prosperous year ahead. Remember, the key is progress, not perfection. Here’s to a strong start and an even stronger finish to your financial journey this year!
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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