No matter what you're hoping to accomplish in the new year, you'll need to set goals to get there. Personal finance is no exception. With effective planning, you can make 2025 the year where you make significant progress toward the future you want for yourself. To help inspire your journey, we'll be sharing 7 examples of money goals that can help you achieve greater financial stability.
A fundamental step in achieving all your money goals is to establish a monthly savings plan. By setting aside a portion of your income regularly, you can work toward both short-term and long-term objectives. Maybe this year you choose to implement the 50/30/20 rule, so you know exactly what percentage of your funds are being sent to your savings account each month. Also, consider any specific purchases you're working toward – a new car, new home, your child's college education – and how much should be put toward each event.
With tools like automatic transfers from your checking account to a dedicated savings account, you can simplify this process and make it a seamless part of your financial life. Consistency is key to building a stable financial foundation.
Emergency savings give you a safety net, providing a buffer for unexpected expenses like medical bills or car repairs. How much money do you need to start with? Your financial situation will help determine an amount that makes the most sense – but a common rule of thumb is to save at least three to six months' worth of living expenses in this fund. This may vary based on individual circumstances such as employment stability and financial obligations.
By prioritizing this fund this year, you can handle unforeseen challenges without dipping into your regular savings or landing in debt. Look at it this way: An emergency fund is an investment in your peace of mind.
If you have a significant amount of debt you've been wanting to pay off, like student loans or a high-interest credit card, this could be a priority for your 2025 plan. Start by evaluating your current outstanding debts to understand the complete financial picture and where you could be making extra payments. Next, choose a repayment method, like snowball or avalanche. You might explore options like debt consolidation or balance transfers to simplify repayments or reduce interest costs.
This is another area where automatic payments can help simplify the process and establish these payments as part of your routine. Establishing a structured plan and sticking to it consistently will pave the way toward a debt-free future.
Contributing the maximum allowable amount to your retirement accounts, such as a 401(k) or an IRA, helps you take advantage of tax benefits and compound interest. To begin working toward this financial goal, assess your current income and retirement needs to determine the optimal contribution level.
Making regular contributions towards your retirement plan helps in building a substantial nest egg and achieving your long-term objectives. Even if it feels like you're far from retirement age, starting early and staying consistent helps you grow steadily over time.
This could be the year where you approach financial decisions with more confidence. To accomplish this, you can spend time looking into resources on financial planning, like books, workshops, or webinars. When you feel proficient in areas like credit scores, investments, and retirement planning, you can begin making life changes for the better. It's a good idea to set aside a specific time or a set number of hours each week to dedicate to financial learning. Remember, this will be an ongoing process.
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Exploring entrepreneurship or a side gig as another source of income is a great way to use your unique skillset or passions to earn more. Depending on your expertise, this could be freelancing, tutoring, pet sitting, or running a small online store. Incorporating multiple streams of income not only boosts your earnings but also helps you learn lucrative business skills and expand your professional network.
If you're ready to take action toward your financial dreams this year, it's important to pick goals that align with your values. With these common examples of financial goals, you can begin choosing your specific objectives. This is the first step in your success – whether that’s establishing emergency savings, preparing for retirement, or increasing your income
Addition Financial is here to help you navigate your financial plan. Discover a wide range of personal accounts and digital tools that help you improve your money management, one step at a time. We're excited to help you start 2025 off on the right foot by helping you meet all of your money goals. Join us today!