According to a December survey conducted by Discover Personal Loans, over half of U.S. consumers expressed plans to set financial goals for 2025. However, if you missed the opportunity to craft some resolutions at the start of the new year, financial experts say it’s not too late to get started. In fact, the present moment is an ideal time to establish these goals.
Jordan Awoye, managing partner of Awoye Capital in New York City, points out that the beginning of the year is perfect for a financial reset. "It’s like starting fresh with a clear slate, giving you the chance to evaluate the past year’s performance and decide your priorities moving forward."
With the 2025 tax filing season kicking off on January 27, it’s an excellent opportunity to revisit last year’s finances and align your goals for the upcoming months, advises Awoye.
When it comes to resolutions, many people focus on saving and earning more, spending less, boosting credit scores, and consolidating or paying off debt, as per insights from Discover. Despite these intentions, most respondents highlighted obstacles like inflation, economic conditions, and unforeseen expenses that might hinder their progress.
A poll by Morning Consult, on commission from Discover, surveyed over 2,200 adults in early November to gather these insights.
Focus on What You Can Control
While you can’t control the economy or erase past financial missteps, they shouldn’t hold you back from progress. Corbin Blackwell, a certified financial planner with Betterment in New York City, warns against a negative mindset. "If you’re down on yourself, it can perpetuate a cycle of inaction. Even starting with small steps can make a difference, whether it’s saving a little or gradually paying down debt."
Determine Your Strategy: Save or Invest?
Natalie Taylor, a certified financial planner and founder of The Goodland Group in Santa Barbara, California, advises tailoring your asset allocation based on your time frame. Understanding market volatility is crucial to your planning process.
Some goals, like building a solid emergency fund, might require a conservative saving strategy. Taylor refers to these as "base hit" goals, often requiring less aggressive investment approaches. For such goals, consider high-yield savings accounts or certificates of deposit for a stable and diversified approach.
On the other hand, ambitions like funding a child’s education or planning an early retirement might fall into the "home run" category. These typically call for more aggressive investment tactics, including a diversified stock portfolio, Taylor notes.
Steps to Take Now to Achieve Your Financial Goals
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Build a better budget: Monitor your monthly expenses and savings. As Awoye puts it, consider if more money is coming in than going out, and find ways to cut unnecessary costs or create additional revenue streams alongside your current ones. Setting aside funds for emergencies should be a priority—aim for saving three to six months’ worth of expenses to cover unexpected costs without resorting to credit cards.
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Tackle high-interest debt and save simultaneously: While advisors recommend focusing on high-interest debt—like credit cards, which can have rates as high as 20%—simultaneously building savings is possible. Your decision might rest on comparing interest rates: the rate you’re paying versus the rate your savings could earn.
- Invest for the long term: Allocate savings for needs that are at least a decade away. Consider contributing to an IRA, 401(k), or other retirement plans and put any surplus into a taxable brokerage account for additional growth potential. Your investment choices and timing should align with your specific goals.
Completing a financial reset is vital for laying the groundwork to attain your financial objectives. As Blackwell emphasizes, "Your financial success hinges on your personal definition of what success looks like."
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