As 2025 approaches, it’s time to reflect on your financial progress and set new goals for the year ahead. Whether you’re saving for a major life event, planning for retirement, or simply aiming to improve your financial habits, the start of a new year offers the perfect opportunity to create a solid financial strategy. Here are a few tips to help you set and achieve your financial goals in 2025.

1. Reflect on 2024

Start by evaluating how you did financially in 2024, including how much you spent, how much you earned, and how much you saved. Did you achieve your goals? Were there any unexpected challenges that impacted your finances? Reviewing your successes and setbacks will help you identify what worked and what didn’t. This self-assessment will serve as a foundation for setting realistic and meaningful goals for 2025.

2. Set SMART Financial Goals

To maximize your chances of success, make your goals SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying, “I want to save more,” specify, “I will save $5,000 for an emergency fund by December 31, 2025.” This approach gives you a more tangible, measurable goal and will help you stay focused throughout the year.

3. Prioritize Debt Management

If debt is part of your financial picture, 2025 can be the year you tackle it head-on. Start by listing all your debts, including credit cards, student loans, and personal loans, along with their interest rates and minimum payments. Consider using strategies like the debt snowball method (paying off the smallest balances first) or the debt avalanche method (prioritizing high-interest debt). Reducing debt frees up money for other financial goals and will give you peace of mind.

4. Build Your Emergency Fund

An emergency fund is like a financial safety net, and is there to cover you if you run into any unexpected costs or lose your income. If you don’t have one yet, aim to save at least three to six months’ worth of living expenses. If you already have an emergency fund, consider increasing it to cover higher costs or unforeseen expenses. Automating your savings through a separate account can make this goal easier to achieve.

5. Maximize Retirement Contributions

Retirement may seem far off, but consistent contributions now can have a significant impact later. In 2025, review your retirement accounts, such as 401(k)s or IRAs, and increase your contributions, if possible. Take advantage of employer matches and consider catch-up contributions if you’re 50 or older.

6. Reassess Your Investments

A new year is an excellent time to review your investment portfolio. Ensure your asset allocation aligns with your risk tolerance and long-term goals. If your portfolio has drifted from its target allocation due to market changes, rebalancing can help maintain the desired balance.

7. Plan for Major Expenses

Are you anticipating big expenses in 2025, like buying a home, getting a degree, or taking a dream vacation? Start saving now by creating a dedicated fund for these goals. Breaking large expenses into smaller, manageable savings targets can make them more achievable.

8. Work with a Financial Advisor

Navigating your financial journey can be complex, but you don’t have to do it alone. A financial advisor can help you assess your current situation, set realistic goals, and develop a comprehensive plan for achieving them. Regular check-ins throughout the year will keep you on track.

Reach Your 2025 Financial Goals

At DeSantis, Kiefer, Shall & Sarcone, our experts will help you reach your financial goals for 2025. No matter where you’re at in your financial journey, our team will work closely with you to come up with a plan that gets you to where you want to be. Contact us so you can get started making 2025 your most financially successful year yet!