As we approach the new year, personal finances are a top priority for many households. According to a recent survey by Allianz Life, 38% of Americans have identified financial stability as their main focus for 2025. To help you kickstart your financial journey in the coming year, CNBC reached out to certified financial planners for their expert advice. Here are some key resolutions to consider as you plan ahead:
- Create and Stick to a Budget: Kamila Elliott, Co-founder and CEO of Collective Wealth Partners, emphasizes the importance of budgeting. Max out your retirement contributions and set a personal financial goal, such as paying off credit cards or investing an additional $100 a month in an investment account.
- Track Your Spending: Barry Glassman, Founder and President of Glassman Wealth Services, highlights the significance of knowing where your money is going. By tracking your spending for a few months, you can identify areas where you can make adjustments and improve your financial habits.
- Focus on Estate Planning: Marguerita Cheng, CEO of Blue Ocean Global Wealth, stresses the importance of estate planning at any age. From setting up power of attorney documents to revisiting life insurance policies, taking steps to plan for the future can provide peace of mind for you and your loved ones.
- Review Your Insurance Coverages: Lee Baker, Founder of Claris Financial Advisors, suggests reviewing your insurance policies, including auto, home, disability, and life insurance. Ensuring you have adequate coverage can protect you in case of unforeseen circumstances.
- Optimize Your Tax Strategies and Retirement Planning: Take the time to review your tax strategies, retirement contributions, and cash flow. Look into opportunities like tax loss harvesting and maximizing your employee benefits to improve your overall financial picture.
- Automate Your Savings: Cathy Curtis, Founder and CEO of Curtis Financial Planning, recommends automating your savings to make it easier to reach your financial goals. By setting up automatic transfers from your checking account to a savings or investment account, you can build your savings effortlessly.
- Manage Overspending: Identify your spending weaknesses and set a budget to curb overspending. Tracking your expenses regularly can help you stay on track and avoid unnecessary purchases.
- Stay Invested: Despite market volatility and economic uncertainties, remember the importance of staying invested for the long term. History has shown that the market tends to recover over time, making consistent investing a smart strategy.
By incorporating these financial resolutions into your planning for 2025, you can set yourself up for a successful and secure financial future. Take control of your finances and make positive changes to achieve your goals in the new year.
