Find out what experts suggest that you should put on your financial to-do list for 2025!
According to a Bankrate survey, paying off debt is one of the top financial goals for many people this year. However, financial advisors also highlight other priorities that you should add to your financial to-do list, which can help build long-term benefits. So, keep reading and find out what the experts are saying.
Align Your Budget with Your Goals
“A little bit of time spent on understanding your actual spending and then deciding if it lines up with your goals and values is time very well spent”, said Jude Boudreaux, a partner and senior financial planner with The Planning Center in New Orleans.
So, ask yourself:
- Are your spending patterns consistent with your values?
- Should you adjust them?
Reviewing your finances can highlight areas for improvement and ensure you’re maximizing your resources. “Mindful spending that reflects personal values can lead to greater satisfaction and stronger relationships”, noted Rianka Dorsainvil, a certified financial planner, founder and senior wealth advisor at YGC Wealth.
Reduce Unnecessary Expenses
High credit card debt and rising costs make this a great time to cut back on spending. Ted Jenkin, CFP and CEO of oXYGen Financial, recommended reviewing past credit and debit card statements. Look for subscriptions, apps, or memberships you no longer use and cancel them.
Also, consider cutting streaming service expenses. Multiple subscriptions often exceed the cost of traditional cable. Consolidating accounts or sharing services within a household can save money. Grocery shopping habits, like impulse buys, are another area worth monitoring, he added.
Create an Investment Policy Statement
Market fluctuations can tempt you to make reactive investment decisions, but this often leads to missed opportunities. CFP Carolyn McClanahan, founder of Life Planning Partners, suggested creating a personal investment policy statement to prevent that. For example, if your portfolio is 80% equities and 20% fixed income, rebalancing to these levels during market shifts can keep you on track without overreacting.
Negotiate a Pay Raise
The new year is a prime time to meet with your employer and discuss your contributions to the company, according to Cathy Curtis, a certified financial planner and founder of Curtis Financial Planning. Research your market value and prepare a concise pitch outlining why you deserve a raise, she advised. She also suggested considering whether opportunities for better compensation might exist elsewhere.
Schedule Family Money Meetings
Setting up formal family meetings can foster intergenerational wealth discussions. Lazetta Rainey Braxton, a certified financial planner, founder and managing principal of The Real Wealth Coterie, advised scheduling at least two annual gatherings to address topics such as financial goals, long-term care needs, and estate planning.
Plan Ahead for Financial Deadlines
Whether it’s filing taxes or meeting required minimum distributions, starting early can reduce stress. “Think about all the things that come up over the course of the year and plan for it early. Avoid waiting until the last minute. You and your advisors will benefit“, said Baker of Claris Financial Advisors in Atlanta.