New Year, New Financial You: Expert Advice for 2025
As the clock strikes midnight on December 31st, many of us vow to tackle our financial to-do lists. But what do financial advisors, who work with clients every day, think should be top priorities for 2025? From budgeting to estate planning, here are some expert tips to help you achieve your financial goals.
Start Small, Win Big
“Begin with manageable goals and celebrate your wins,” advises Lee Baker, a certified financial planner and founder of Claris Financial Advisors in Atlanta. “It’s better to make progress gradually than to try to change everything at once and risk getting frustrated.”
Mindful Spending
Take a closer look at where your money is going. “Understanding your spending habits and aligning them with your goals and values is crucial,” says CFP Jude Boudreaux, a partner and senior financial planner with The Planning Center in New Orleans. Identify areas where you can cut back and make adjustments to ensure your spending reflects your priorities.
Streamline Your Finances
Review your credit and debit card statements to identify unnecessary subscriptions, apps, and memberships. “Cancel anything you don’t use and negotiate better deals on services you need,” suggests Ted Jenkin, a CFP and founder and CEO of oXYGen Financial in Atlanta.
Invest with a Clear Head
When the market fluctuates, it’s tempting to react. But research shows that the best days often follow the worst. Create a personal investment policy statement to stay focused on your goals and avoid emotional decisions. “This will help you rebalance your portfolio and avoid costly mistakes,” says CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
Boost Your Income
Take advantage of the new year to discuss your salary and value with your supervisor or boss. “Research your market worth and prepare a clear, concise pitch for why you deserve a raise,” advises Cathy Curtis, a CFP and founder and CEO of Curtis Financial Planning.
Estate Planning: Don’t Wait
Estate planning is often overlooked, but it’s essential for anyone with young children or property. “Complete your estate plan, including wills, trusts, and powers of attorney, to ensure your wishes are honored,” says Louis Barajas, a CFP and CEO of International Private Wealth Advisors in Irvine, California.
Family Money Conversations
More than half of Americans never discussed money with their parents. “Schedule regular family meetings to discuss financial goals, long-term care needs, and estate planning,” recommends Lazetta Rainey Braxton, a CFP and founder and managing principal of The Real Wealth Coterie.
Invest in Your Marriage
A successful marriage is key to personal happiness. “Invest time and money in your relationship by having open money conversations and scheduling regular date nights,” says Tim Maurer, a CFP and chief advisory officer at SignatureFD.
Plan Ahead
Avoid procrastination by planning for deadlines and milestones throughout the year. “Get started early on tasks like tax returns and required minimum distributions to avoid last-minute stress,” advises Lee Baker of Claris Financial Advisors.
Give Back
For those with the means, consider giving money to loved ones now rather than waiting. “This can help identify family values and direct money towards a purpose,” says Jude Boudreaux of The Planning Center. Take advantage of the annual gift tax exclusion, which increases to $19,000 per recipient in 2025.
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