Smart Financial Resolutions for a Wealthier New Year
January 13, 2025
8 min read
Hey there! It’s Brian here—your not-so-typical numbers guy who genuinely loves finding ways to make your wallet practically burst with joy. Over the years, I’ve had the privilege of helping people turn financial chaos into clarity. Today, I want to walk you through some principles that have bolstered not only my personal finances but also countless others’.
It’s not about becoming a millionaire overnight but about building a system that works for YOU. Don’t worry, I’ll be sharing my own mishaps (yes, even financial advisors mess up sometimes) and lessons learned along the way.
Grab a cup of coffee—this will be like a chat with an old friend, peppered with some pro tips to help you secure that sweet financial future.
Assess Your Current Financial Health
Here’s a truth bomb for you—17% of Americans are now considered financially vulnerable, as revealed by the Financial Health Network. That’s almost 1 in 5 people struggling with basic expenses, savings, and debt.
I get it—back in my 20s, I thought I was fine just because I wasn’t deep in debt. But one unexpected car repair showed me how shaky my finances really were. Turns out, taking a hard look at where you’re starting is the first step to getting better. Don’t worry, we’ll tackle this together.
1. Taking Stock of Income and Expenses
First things first, write EVERYTHING down—your income streams and monthly expenses. Back then, I realized I was spending an absurd amount on takeout. Did I need sushi three nights a week? No. But seeing those numbers on paper was the wake-up call I needed.
2. Reviewing Debt Situation
Take a good, hard look at your debt. Student loans? Credit cards? List them all, along with their interest rates. Knowing your “debt landscape” can be eye-opening—you might even start questioning that store credit card you impulsively signed up for.
Buzz Bite: Did you know? The average U.S. household carries over $6,000 in credit card debt!
3. Checking Current Savings and Investments
When I first checked my savings, I laughed at the “rainy day fund” I thought I had—it was barely a drizzle fund. Evaluate your emergency savings and any investments. Are they growing or just sitting there, stagnant?
4. Understanding Credit Score and History
Your credit score is like the GPA of adulting. I won’t lie—mine wasn’t great in my early days, thanks to missed payments on a credit card I’d forgotten about. But knowledge is power. Pull your report and understand where you stand.
Being honest with yourself in this step is like stepping on the scale after the holidays. It’s tough, but SO necessary to move forward.
Build a Strong Financial Foundation
Your financial foundation sets the tone for everything else, so make it rock-solid. Think of this as building your money muscle—small, consistent steps lead to results.
1. Establish an Emergency Fund
I can’t stress this enough—an emergency fund is your financial best friend. A few years ago, my car broke down, and instead of panicking, I simply dipped into my fully funded emergency fund. The peace of mind I had is something I want everyone to experience. Aim for at least 3-6 months’ worth of expenses.
2. Create a Realistic Budget
Oh, budgets. I used to think of them as restrictive, but they’re actually liberating once you get the hang of it. My first budget failed miserably because I didn’t leave room for fun! Lesson learned—your budget should reflect not just your needs, but your values too.
Buzz Bite: Budgeting isn’t about cutting all the fun. Make sure to allocate 10-20% of your income for experiences that bring you joy!
3. Automate Savings
Automation changed my life. Set up transfers to savings or investment accounts as soon as your paycheck hits. Trust me, you won’t miss money you don’t even see. It’s like your future self thanking you in advance.
4. Organizing Financial Documents
Ever spent hours hunting down a receipt or a financial statement? Been there. Now, I keep everything organized in one secure app. The time you save is worth it.
Tackle Debt Strategically
Debt can feel like a massive burden, but with a plan, you can crush it. Think of it as a strategic game—you just need the right playbook.
1. Prioritize High-Interest Debt
That store credit card I mentioned earlier? Yeah, it had a 25% interest rate. Yikes! I tackled that first using the avalanche method (paying off high-interest debt first), and it’s one of the best decisions I made.
2. Consider Debt Consolidation
If you’re juggling a bunch of payments, consolidation might simplify things. I helped a friend combine multiple loans into one manageable payment with a lower interest rate, and they’ve been debt-free since.
3. Set a Repayment Timeline
When I set hard deadlines, I paid off debt faster. Write down your debt-free date and work backward to figure out monthly goals. Seeing the light at the end of the tunnel will keep you motivated.
4. Avoid New Debt
Simple but important—don’t add new obligations while you’re in payoff mode. Trust me, skipping that new gadget is worth it.
Boost Your Savings and Investments
Once your debt is under control, it’s time to make your money work for YOU.
1. Maximize Retirement Contributions
If your employer offers a matching 401(k), don’t leave free money on the table. I didn’t prioritize this until my late 20s, and it’s one of my biggest financial regrets. Start now.
2. Explore Tax-Advantaged Accounts
I love a good deal, especially when it’s from Uncle Sam. Use accounts like IRAs or HSAs to save for retirement or healthcare while cutting your tax bill.
3. Diversify Your Investments
Don’t put all your eggs in one basket. When I first started investing, I dumped everything into a single tech stock. Big mistake. Now, I have a diversified portfolio to weather market ups and downs.
4. Set Specific Savings Goals
Whether it’s a dream vacation or a new home, having clear goals motivates you to save smarter. Seeing your progress—even with small wins—feels amazing.
Buzz Bite: Did you know investing just $200/month with a 7% return can grow into nearly $240,000 in 30 years? Start small, dream big!
Increase Your Financial Knowledge
The financial world can be overwhelming, but learning the basics empowers you.
1. Tap Into Resources
Whether it’s podcasts, books, or online courses, there’s something for everyone. I owe much of my knowledge to late-night dives into personal finance blogs.
2. Understand the Market Basics
You don’t need to be a Wall Street expert, but knowing terms like “index fund” or “compounding interest” will go a long way.
3. Learn Tax Strategies
Taxes don’t have to be scary. I’ve saved thousands by learning simple strategies like adjusting withholdings or maximizing deductions.
4. Stay Updated
Stay curious. I set Google alerts for financial news, so I’m always in the loop. You don’t need to check daily, but staying informed helps you pivot when necessary.
Protect Your Financial Future
Protecting wealth is just as important as building it.
1. Assess Insurance Coverage
I once skipped renter’s insurance to save a few bucks—then my apartment flooded. Lesson learned. Make sure your insurance policies fit your life stage.
2. Get Serious About Estate Planning
Estate planning isn’t just for the wealthy. A basic will or trust ensures your loved ones are taken care of.
3. Protect Your Identity
Identity theft is no joke. I signed up for identity monitoring after a data breach, and I sleep better at night knowing my info is guarded.
4. Regular Check-Ups
Just like your health, your finances need routine check-ups. Quarterly reviews ensure you’re still on track.
Develop Additional Income Streams
Making more money can fast-track your goals.
1. Find Side Hustles
I started freelance consulting on weekends, and while it was a grind, it funded my travel dreams. Explore your skills—there’s likely a side hustle waiting for you.
2. Pursue Passive Income
Rental properties, dividend stocks—passive income streams take time to set up, but they’re worth it.
3. Maximize Career Earnings
Don’t overlook your 9-to-5. By upskilling and negotiating raises, I’ve substantially increased my long-term earning potential.
4. Pay Yourself With Investments
Reinvest dividends and interest rather than spending them. Over time, the compounding effect is jaw-dropping.
Implementation Strategy
Enough theory—it’s time for action.
1. Monthly Targets
Break big goals into bite-sized pieces. For example, I save $500 a month for larger savings goals like vacation funds or home improvements.
2. Tracking Systems
Apps like Mint or YNAB make it simple to track your progress. Watching those debt numbers drop or savings grow is incredibly motivating.
3. Regular Reviews
Every month, review your wins and areas for improvement. Celebrate small victories—they add up!
4. Stay Adaptable
Life happens, and your plan might need tweaking. That’s okay—what matters is consistency over time.
Small Steps, Big Wins—Go Crush It!
If I could sum up everything, it’d be this—small steps lead to big results. My financial success didn’t come from one big move; it’s been a series of small, intentional habits stacked on top of each other. Wherever you are right now, start today. The best time to build a secure future was yesterday. The second best time? Right now.
You’ve got this—I’m rooting for you! If I can turn my financial mess into a system I’m proud of, so can you. Cheers to acing your money game!
