A Financial Glow Up in the New Year

With us just over a month into the new year, taking proactive steps to improve your financial health can set the tone for long-term success. As the past year has seen an easing of inflation, the aftermath of increased costs has left a lasting impact on savings and financial confidence and health.

In facing financial challenges, it’s crucial to explore practical solutions and money resolutions that help you brace for economic challenges, gain confidence in your budget, and benefit your overall health. The new year is the perfect time to take steps to improving your financial health by setting priorities, goals, and budgets, finding new ways to save money, preparing for potential emergencies, and finding a path to financial wellbeing, all helping to create a financial health glow up for yourself in 2025.

Set Specific Top Priorities & Goals

Trying to accomplish too much can feel overwhelming. Instead, pick your top priorities for the year:

Be Specific as Possible

  • Select specific action items, such as signing up for a budgeting tool or setting aside designated time to learn where your money is being spentThe level of specificity provides direction, so you know what steps to take next.
  • For example, if your top priority is to become debt free, then your specific goal might be to pay off $100 toward your debt balance each month.

Set Goals that Motivate You

  • Set goals that relate to the high priorities in your life.
  • To make sure that your goal is motivating, write down why it’s valuable and important to you. 

Write Your Goals Down

  • The physical act of writing down a goal makes it real and tangible. 
  • You have no excuse for forgetting about it. 

Make an Action Plan

  • Write down individual steps and cross each one off as you complete it.
  • You will realize that you are making progress towards your goal. 

Track Your Progress

  • Measuring Your progress as the year unfolds is a critical component of successful goal setting. Schedule a weekly or monthly check in with yourself to make sure you are meeting those goals

Automate When You Can

If your goal is to save more money, then setting up an automatic transfer each month can effortlessly help that goal turn into a reality. 

Adjust When Needed

  • It’s just as important to remember to stay flexible throughout the year, when unexpected challenges inevitability come up.
  • You might even need to change your goal at some point during the year, but that doesn’t mean you “failed”—just that life changed your plans. Dwelling on negativity won’t help your forward progress.

Budgets Set Up Long-Term Success

It’s easy to get caught up in the numbers and details in the budgeting process, here are some steps to follow to get started:

Determine Your After-Tax Income

  • If you get a regular paycheck, the amount you receive is likely your after-tax income, but if you have automatic deductions for a 401(k), savings, and health and life insurance, add those back in to give yourself a true picture of your savings and spendings.

Choose a Budgeting Plan & Track Your Progress

  • Any budget must cover all of your needs, some of your wants, and savings for emergencies for the future
  • For example, try the 50/30/20 rule as a simple budgeting framework.
    • Allow up to 50% of your income for needs.
    • Leave 30% of your income for wants.
    • Commit 20% of your income to savings and debt repayment.
  • Track and manage your budget through regular check-ins.

Automate Your Savings

  • Automate as much as possible, so the funds you’ve allocated for a specific purpose gets there with minimal effort.
  • If your employer allows, set up automatic payments from your paycheck to emerging savings, investment, and retirement accounts.

Practice Budget Management

  • Your income will change over time, so make sure to revisit your budget regularly, perhaps quarterly.
  • The budget you choose doesn’t have to last forever. If you find that your initial strategy isn’t working, try a different one.

Save like a Pro in 2025

Growing your savings is a crucial step toward improving your financial stability and health by achieving long-term goals. While it seems nearly impossible to save in 2025, here are some tips you can use to start implementing now:

Plan Your Meals & Shop with a List

  • This is an effective method to save money while ensuring you and your family a nutritious diet. If you decide what to cook in advance, you can reduce impulse purchases, the need for frequent grocery lists, and the temptation to order takeout.
  • Assess your weekly needs and create a menu that includes all meals and snacks. This approach helps to streamline shopping and helps you stick to your budget.

Audit Your Subscriptions

  • It’s easy to lose track of the cost of subscriptions, especially if they are automatically deducted from your account.
  • List all recurring payments, including streaming services, gym memberships, mobile apps, and subscription boxes.
  • Once you have a comprehensive list, evaluate which subscriptions you actually use and value. Cancel those you don’t need or use anymore, or consider switching to a lower cost plan, if necessary.

Use Cash Envelopes

  • Allocate specific amounts of cash to envelopes labeled for categories like groceries, entertainment, and dining out. Once an envelope is empty, spending in the dedicated category stops.
  • This system provides a clear visual of your spending habits, making it easier to adjust over time and encouraging discipline and mindful spending.
  • Leftover cash at the end of the month can go directly into savings or toward another expense. 

Unsubscribe from Unnecessary Marketing Emails

  • Are you frequently tempted by emails promoting sales or discounts? Consider removing yourself from mailing lists to limit your exposure to impulse triggers and focus on saving goals.
  • For those who want to stay informed about deals, use a separate email address for promotions. This keeps marketing messaging out of your main inbox and reduces distractions.

Sell Unused Items

  • Declutter your home and sell unused items to generate extra income for savings. Use platforms like eBay, Craigslist, or Facebook Marketplace to make it easy for buyers to find your products.
  • Host a yard or garage sale when you have a variety of items to sell, allowing you to offload multiple items in one day. 
  • Visit a consignment store that specialize in reselling clothing or specific goods.

DIY When Possible

  • Instead of hiring professionals for minor home repair or improvements, gardening, or creative projects, consider handling them yourself. Many tasks, such as painting a room, fixing a leaky faucet, or landscaping can be accomplished with basic tools and online tutorials.
  • For larger projects, you can borrow or rent tools rather than purchasing them.
  • While not every task is suited for DIY, it’s a great way to personalize your space or belongings while managing projects that benefit both your financial health and personal development.

Emergency Funds Take the Stress Out of Unexpected Expenses

  • An emergency fund is a cash reserve that’s specifically set aside for unplanned expenses or financial emergencies. Some common examples include car repairs, home repairs, medical bills, or a loss of income.
  • The amount you need to have in an emergency savings fund depends on your situation. Think about the most common kind of unexpected expenses you’ve had in the past and how much they cost. This may help you set a goal for how much you want to have set aside.
  • Creating a dedicated savings or emergency fund is one essential way to protect yourself. It’s also one of the first steps you can take to start saving. You can recover quicker and get back on track to reach your larger savings goals by putting money aside, even if it’s a small amount.
  • Set some guidelines on what constitutes an emergency or unplanned expense. Not every unexpected expense is a dire emergency but try to stay consistent.

A Path to Financial Wellbeing

Resources are available to create a plan to take control of your financial well-being and set a pathway to better financial health. There are steps that can contribute to a major impact on your finances and improve whole-person health.

Seek Emotional Support

Those who are stressed about money report they are able to better cope when they have emotional support. Talk to a family member or close friend. Visit a therapist or counselor in person or online. Many employers offer free or discounted counseling sessions through Employee Assistance Programs.

Consider Talking with your Credit Union or Bank

Many financial institutions offer online and in-person resources to help guide their members toward solid financial decisions.In addition to information about the products they offer, employees in local branches or on the other side of the phone are qualified to answer some of the more common and basic banking questions. More employers offer financial wellness programs to help employees take control of their finances and reduce stress. Financial wellness programs can help with money management skills such as: creating and sticking to a budget, building your credit score, reducing debt, and financial goal setting

Contribute to a Savings Account Regularly

A small amount is all it takes to get started. Automating the process can help make the decision “out of sight, out of mind.” Employers can often direct deposit paychecks into multiple accounts. Credit unions also offer this service. Directing an amount of your paycheck automatically into a savings account does not require the time to deposit the funds yourself. Understanding your debt, credit score, interest rates, and how many creditors you owe is the first step to paying down your debt. The most common strategies for paying down debt are:

  • Pay off the highest interest rate debt first by making larger payments
  • Pay off the smallest debt first and work your way up to the highest debt

Direct a Percentage of your Income to Savings

Even a small percentage will make a difference over time. Today many employers offer 401K plans with matching funds. A variety of other savings options allow you to invest small amounts of money to increase your long-term savings.

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