As we enter 2025, it’s time to take stock of your financial health and set yourself up for success in the coming year. Here’s a comprehensive check-up list to help you prepare financially for 2025:
Create and Stick to a Budget
Start by tracking your income and expenses for a month to identify areas where you can cut back. Create a realistic budget that allows you to save while covering your needs. Use budgeting apps or spreadsheets to categorize your expenses and set spending limits for each category.
Build an Emergency Fund
Prioritize saving for unexpected expenses. Aim to set aside 3-6 months of living expenses in a readily accessible account. Automate transfers to your savings account to ensure consistent growth.
Pay Down High-Interest Debt
Create a structured debt payoff plan, prioritizing high-interest debts first. Consider debt consolidation options or negotiate with creditors for lower interest rates. Use the debt snowball or avalanche method to accelerate your progress.
Boost Retirement Savings
Maximize contributions to your 401(k) or IRA. If your employer offers a 401(k) match, ensure you’re contributing enough to get the full match. Review your investment portfolio and consider diversifying to balance risk and returns.
Set SMART Financial Goals
Establish Specific, Measurable, Achievable, Relevant, and Time-bound financial goals for 2025. For example, “Save $10,000 for a home down payment in two years” or “Pay off $5,000 in credit card balance within 12 months”.
Improve Your Credit Score
Pay bills on time and in full, keep credit utilization below 30%, and monitor your credit report regularly for errors. Avoid opening too many new credit accounts.
Invest in Financial Education
Take time to learn about personal finance, investing, and money management. Consider attending workshops, reading financial books, or following reputable financial blogs.
Review Insurance Coverage
Ensure all your insurance policies are up to date and provide adequate coverage. This includes life, disability, property, and long-term care insurance. Consider an umbrella policy for additional protection.
Plan for Taxes
Review your year-end statements and assess your tax liabilities. Meet with a tax strategist to optimize your tax planning for 2025 and avoid unnecessary taxes.
Update Estate Planning Documents
Ensure your will, healthcare and financial powers of attorney are up to date. Consult with an estate planning attorney about trusts and other tools to protect your assets and facilitate wealth transfer.
By following this check-up list, you’ll be well-prepared to tackle your financial goals in 2025. Remember, the key to financial success is consistency and regular review of your progress. Make these resolutions a part of your routine, and you’ll be on your way to a more secure financial future.
About the Financial Authors
Alexander Langan, J.D, CFBS, currently serves as the Chief Investment Officer at Langan Financial Group. In this role, he manages investment portfolios, acts as a fiduciary for group retirement plans and consults with clients regarding their financial goals, risk tolerance and asset allocation.
With a focus on ERISA Law, Alex graduated cum laude from Widener Commonwealth Law School. He then clerked for the Supreme Court of Pennsylvania and worked in the Legal Office of the Pennsylvania Office of the Budget, where he assisted in directing and advising policy determinations on state and federal tax, administrative law, and contractual issues.
Alex is also passionate about giving back to the community, and has helped establish The Foundation of Enhancing Communities’ Emerging Philanthropist Program, volunteers at his church, and serves as a board member of Samara: The Center of Individual & Family Growth. Outside of work and volunteering, Alex enjoys his time with his wife Sarah and their three children, Rory, Patrick, and Ava.
About the Financial Planning Firm – Langan Financial Group
Langan Financial Group is an award winning independent financial planning firm with 10+ independent awards and over 100+ 5 star reviews.
Langan Financial Group has two financial planning locations – Harrisburg, Pa and York, Pa. Established in 1985, Langan Financial Group offers a broad range of financial planning services for individuals and organizations.
By being an independent firm, we are not required to sell any specific products or meet any specific quotas. As such, we are able to focus more on providing fiduciary services and customizing a specific personalized financial plan according to your needs.
Disclosures
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
