New Year, New You

New Year, New You

Happy New Year folks and I can’t believe it is 2025 already.  Coming out of the gates hot, I figured resting time is done, and now it is time to start planning for what hopes to be a great year for us all.  Generally speaking, around now you should have an idea of a few things for this year. New salary, bonus time, big financial expenditures, and simply life goals.  I figured why not give you some guardrails and help you plan a good part of the year as no time is better than the present.

Here is a starter list of things I think pertinent to get off on the right foot:

1. Budget small- You should now be able to understand your monthly run rate on expenses in your household.  Create some sort of budget whether it is super detailed or loose, of what you plan to spend month in and month out.  This is foundational and extraordinarily important to make sure your finances are healthy and sustainable. 
2. Budget big- I love doing this each year.  I try as best I can to predict my non-regular expenditures for the year.  Call this vacation, camp for the kids, home projects, charitable gifts, and the like.  These are things outside of your monthly run rate that you anticipate in the year ahead.  I highly suggest once you have a sense of the total dollar amount, you create a plan out of either monthly income or that year-end bonus to how you plan to fund these larger expenses.
3. Adjust your savings- With a new year generally comes a new income.  It is super critical that you carve out some of those newfound funds to bolster your retirement savings.  Even if it means simply increasing your 401(k) 1% it can go a long way to further your financial situation.  I’m a big fan of the saying life is a cinch by the inch but hard by the yard.  Lots of small acts are easier and more palatable usually than large acts, and this is no exception.
4. Bonus time- Not everyone gets a bonus, but for the group that does start planning what and how you plan to allocate it.  The worst sin is having it hit your bank account with simply no plan as that generally is a squandered opportunity.  If you need help give us a ring and we can help you strategize.
5. Tax Prep- Ever since we owned a tax company it has become very evident that organization is key.  You are going to start receiving year-end tax documents by truckload.  Save them and keep them organized.  Additionally, if you are subject to quarterly taxes start preparing yourself.  The final comment on taxes is this year was a good one in the markets, thus large non-qualified investment accounts be prepared for a little extra capital gains this year.
6. Debt- If you have destructive debt, ie credit cards at 15-20%, create a plan and attack it like hell.  This can be a financial plan’s death knell and if you don’t come up with a well-crafted plan it can spiral out of control.  Create a plan and fight to stick to it so that you can be as financially healthy as possible. 
7. One big goal- What is that one big financial goal you want to achieve this year?  Could it be getting out of that credit card debt, or perhaps eclipsing the million-dollar investment mark?  Regardless, I am a big fan of creating a big audacious goal and letting it be my guiding light each year.  Pick something, write it down, and look at it often.  Whatever it is, let it empower you and drive you this year.
8. New Year’s resolution- Finally how can we start the new year without a New Year’s resolution?  Let’s look at this differently than the one big goal.  Rather, what is the one thing you have been totally neglecting or dragging your feet on?  Is it getting a will, purchasing that life insurance, or something else that you know you need to do but just haven’t?  Again, write it down and look at it often.

I truly wish everyone a very happy and healthy New Year.  May this year bring us closer together as a Nation and world than further apart and let’s all strive to be one percent better than we were last year. 

Stay wealthy, healthy, and happy!