Planning Your Financial New Year’s Resolutions

As 2025 approaches, many Americans are taking stock of their financial goals and planning ahead. Nearly 9 in 10 Americans (86%) have at least one financial resolution for the New Year. Whether it’s building savings, managing debt, or preparing for retirement, setting clear, actionable resolutions can pave the way for success.

Determining specific goals is key to turning resolutions into results. By focusing on practical, measurable steps, you can make meaningful progress in your financial journey. Here are six financial resolutions to consider as you step into the New Year.

Build an emergency fund

Unexpected expenses can strike at any time, and having an emergency fund can provide a critical safety net. Experts recommend saving 3-6 months’ worth of expenses, but if you’re starting from scratch, focus on building even a modest cushion. Small, consistent contributions can grow into a reliable fund over time.

The need for emergency savings is more pressing than ever. According to 2022 Consumer Financial Protection Bureau data, 24% of Americans have no emergency savings, while 39% have less than one month’s income saved. Use tools like emergency fund calculators to set realistic savings goals and take the first steps toward financial security.

An emergency fund isn’t just about peace of mind—it’s about protecting your long-term financial goals. By preparing for the unexpected, you can avoid relying on credit cards or dipping into retirement savings when unplanned expenses arise.

Create or update your budget

A realistic budget is one of the most effective tools for managing your money. Start by listing your fixed and variable expenses, then track your monthly spending to identify areas for improvement. Adjusting your budget to reflect your current goals can help you stay on track financially.

Budgeting isn’t just about numbers – it’s about confidence. Research shows that only 36% of Americans have a written financial plan, but among those who do, 96% feel confident they will reach their financial goals. Using budgeting apps or online tools can make tracking your progress easier and more effective.

Updating your budget is also an opportunity to prioritize your goals. Whether you want to save more, pay off debt, or invest in your future, a clear and adaptable budget can serve as a roadmap to achieving your financial resolutions.

Set a retirement savings goal

Saving for retirement is one of the most important long-term financial priorities, yet many Americans feel unprepared. Studies suggest that individuals need over $1 million saved today to retire comfortably in many states. While this figure may seem daunting, it’s never too late to start or increase your contributions.

Begin by setting a specific savings goal for 2025. This could include starting a new retirement account, maxing out your IRA contributions, or increasing your 401(k) savings. Don’t overlook employer match programs, which can significantly boost your retirement savings at no extra cost. Automating contributions can also simplify the process and ensure consistency.

If you haven’t yet contributed for 2024, there’s still time! The IRS allows retirement contributions for the previous year until the tax filing deadline in April. 43% of individuals wish they could go back in time and start saving sooner. Take advantage of this opportunity to give your retirement savings an extra boost before focusing on 2025.

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Diversify your investment portfolio

While traditional investments like stocks and bonds are foundational, diversifying into alternative assets can help you manage risk and maximize returns. 69% of ultra-high-net-worth individuals include alternative assets in their portfolios, highlighting the value of diversification in achieving long-term financial growth. Consider expanding your portfolio with options like real estate, private equity, or even cryptocurrency.

One way to simplify diversification is through the Universal IRA. This innovative IRA allows you to hold both traditional and alternative investments, such as real estate, private equity, or cryptocurrency, all in one place. With the Universal IRA, you gain more flexibility and control over your investments, making it easier to explore new opportunities while maintaining a balanced portfolio.

As you explore diversification, focus on assets that align with your interests and financial goals. Whether you’re passionate about real estate or intrigued by emerging markets, investing in what you understand and value can lead to smarter, more confident decision-making.

Increase your financial literacy

Improving your financial knowledge is one of the best investments you can make in yourself. Financial literacy remains a challenge for many Americans—less than 50% are considered financially literate. From understanding retirement accounts to learning about tax strategies, increasing your financial literacy can empower you to make better decisions and build long-term wealth.

Start by taking a financial education course, subscribing to newsletters, or reading blogs to expand your knowledge. By committing to ongoing education, you’ll not only feel more confident but also be better equipped to achieve your financial goals. Knowledge is power, and in the world of personal finance, it’s also a pathway to success.

Equity Trust offers many education courses that can help you learn more about investing in your future. Whether you need an overview on rules and regulations or a master course in real estate investing, our courses provide valuable information to help guide your financial journey.

Plan for regular financial check-ins

Consistency is key – 65% of people who financially plan feel financially stable, compared to only 40% of non-planners. Schedule monthly or quarterly “financial health days” to assess your spending, savings, and investments. These check-ins allow you to adjust for changes, track progress, and celebrate milestones.

Use these sessions to revisit your goals, identify areas for improvement, and ensure your plans remain aligned with your current circumstances. Staying on top of your finances requires regular review.

Financial check-ins aren’t just about staying accountable – they’re about celebrating progress. Recognizing your achievements, no matter how small, can keep you motivated and focused on the bigger picture.

Just get started

Setting financial resolutions is the first step toward a better financial future, but action is what makes them a reality. Whether you’re building an emergency fund, planning for retirement, or diversifying your investments, the time to begin is now.

If you’re ready to get started or want to learn more, schedule a call with an IRA Counselor today