New Start: Tips for Your Financial Wellness

Key Takeaways

The start of a new year is often a great time to set goals for yourself. And if you're like many people, financial security ranks high. In fact, New Year's resolutions about money ranked at the top for 2025—specifically, most people want to save more money.^* Also, on the list was paying down debt.

So, where can you start to help with your financial future? Financial consultants Ryan Adams, Jimmy Merdian, Sarah Pedersen and Addison Tantillo share their top three tips. These tips can help you improve your financial wellness this year or anytime. They will also help you start and stick to your resolutions.

Financial Wellness Tip 1: Create or Revisit Your Budget

Love or hate them, budgets can be a key to better financial wellness. A budget helps you take control of your finances (rather than having your finances control you). Tracking expenses can help you find money to save more for emergencies, your future and things you've always wanted to do.

"People who dislike budgets often haven't tried it," Ryan says. He suggests starting with a simple budget. That could mean starting with an annual budget rather than keeping track of one every month.

Addison agrees. "Going through the budgeting process can help you understand where your money goes. And often, people are surprised by what they're spending."

Sarah says to look out for “forgotten” expenses during the budgeting process. “Watch for reoccurring fees associated with memberships, subscriptions and services. These can often be overlooked. If you find a service you are not using, contact the retailer to end the service, and you may even be able to get a refund.”

Addison also says budgeting does not have to look the same for everyone. “You can make your budget your own and track it how you want. Not everyone needs a detailed budget spreadsheet.”

Does Everyone Need a Budget?

We think so; however, you might not need a detailed budget. If you have a good emergency fund and pay down your debt regularly, you may be able to be more flexible. It's smart to watch those two things. If one goes off track, it might be time to focus more on a budget.

Nowadays, managing your budget with apps and your phone is simpler. Our consultants suggest using technology to monitor your spending if you can.

Reviewing your budget once a year can help you stay on track. Also, consider occasional expenses that don’t happen every month. "Be prepared for unexpected expenses, as they can disrupt your budget," advises Addison.

"Revisiting your budget can help you evaluate if it’s working for you," says Sarah. Opportunities such as bonuses or raises may also spring up throughout the year. These opportunities allow you to reassess and establish a new investment objective. On the flip side, if your debt has increased, it may be a good time to rethink your spending habits and plan to pay off that debt.

Keeping Your Emergency Fund on Track

Saving for emergencies can help prevent busting your budget. Investing in an emergency or rainy-day fund should be just as strategic as any other investment you have. “For emergency funds, investors may want to consider a high yielding money market to capture some interest,” says Sarah. “It may also help savings not sit stagnant and give it a chance to keep up with inflation.”

She continues: "Money market accounts are designed to help preserve capital, which may make them an ideal consideration for emergency funds. Many money markets also allow you to write checks from the account, which gives investors extra flexibility."

Financial Wellness Tip 2: Get a Financial Checkup

When a new year starts, our consultants say it's a good time to check your finances, like an annual medical checkup. At the end of the previous year, people may have faced changes. These can include retirement or new health care and insurance costs. And, of course, the increased cost of living is something to keep an eye on.

Where do you start? Reviewing all your year-end financial statements and checking your net worth can be two good ways to help you assess your financial health for the new year. You also want to review your assets and liabilities and see how you are tracking toward your goals.

"Look at your savings accounts, investments and debt at the start and end of last year. This will help you understand your financial situation," says Jimmy. It can also inspire you to make changes and motivate you to improve your finances now and in the future.

Financial Checkups Are Easier When You Have an Existing Plan

If you don’t already have a financial plan, it's a good idea to get one for the new year. While having a checkup at least every year is important, having a plan may be the best place to start.

"Many people believe they're too busy for a financial plan or think they have more urgent matters to deal with," Ryan explains. "We're here to assist with that. Clients will need to gather their information, and that's probably the most time-consuming part. However, other than that, we create the plan to fit your goals."

Addison says, "It’s our job to do the legwork. After we finish, we can go over the plan with the client. Typically, that review will take less than an hour."

Of course, the more details you can provide the better. However, our consultants say they can help you create a plan, even if you don't have exact numbers to start with.

At what age should you start getting a financial plan? A plan is good for any age—it's not just for those nearing retirement. In addition, the plan may not cost as much as you think. Check out our prices for financial planning with personal financial consultations.

Financial Wellness Tip 3: Invest More for Your Future

Our third tip to help improve your financial standing is to increase investing where possible. And it might not be as complicated or painful to your budget as you think.

"Start by revisiting your retirement plan contribution limits and income," Addison says. "If you received a raise, it might be a great time to put any extra toward your future." He also says the start of a new year is a good time to review your prior year’s IRA contributions. “If you didn’t max out your contributions before December 31, you can still contribute for last year until your tax filing deadline.”

Sarah says if you have a retirement plan at work, consider increasing your contribution by 1% or 2% each year. "If your contributions are pretax, you might not see much change in your paycheck. This is because it lowers your taxable income.”

No 401(k)? Jimmy says, "You can still boost your retirement savings. Increase your contributions by a percentage or a small dollar amount each year in an IRA. Just remember the annual limits."

Remind yourself by marking it on your calendar. Saving more can be especially easy if you have automatic investments already set up for your IRAs. "Do that every year," says Sarah. "And before long, you could max out your contributions without making a huge dent in your budget."

Improve Your Financial Wellness by Choosing One Tip

Our consultants are sharing their three top tips for financial wellness, however there are more to consider for your New Year's money goals or resolutions. You could plan to pay off debt, increase your credit score or combine old retirement accounts into one. However, choosing one goal to focus on for the year may give you a better chance of keeping your resolution.

"Whatever money resolution you make for this year, make sure you choose one that's doable for you.” Jimmy says that making good choices with your money can improve your financial health for many years. “If you need help with your financial goals, we are here to help.”