Six ways to set yourself up for success in 2025

If you’re hungry for more on this topic, listen to “Grounded Guidance for a Serious Go-Getter.” It's the latest episode from 'What Should I Do With My Money', a podcast that peels back the curtain on financial advice, matching real people, asking real questions about their money, with experienced Financial Advisors.

Revisiting your finances at the start of a new year may not seem as exciting as making other resolutions, such as exercising more or taking steps to reduce stress in your life, but it’s important to remember that your financial wellness is often closely connected to your physical and mental health.¹

The good news: Improving your financial wellbeing can be easier than you might think. Here are six simple steps you can take to help set yourself up for financial success in 2025 and beyond.

Start the year by revisiting your budget. Assess your average monthly income, as well as your fixed and variable expenses, and determine your financial priorities for 2025 to develop your ideal budget. Reassessing your spending plan is critical now, as you’re likely to spend more on everyday items like groceries or gas with continued inflation.

This exercise can help you determine your top priorities for 2025. For example, maybe you’re looking forward to putting extra income toward a bucket-list vacation over the summer. Or perhaps you’re planning to save even more for retirement.

If you’re having trouble getting started, this worksheet can help.

It’s always a good idea to double-check that you have adequate funds set aside for a rainy day—that’s especially true in times when the economy may be slowing from its once-robust pace. Economic growth has slowed this year, with gross domestic product (GDP) expanding at just 2.8% in the third quarter of 2024, down from 3% in the second and 4.4% in the third quarter of 2023.²

Particularly in an uncertain economy, an emergency fund can help keep you financially afloat in unforeseen life circumstances, such as a change in your or a loved one’s employment situation.

A general rule of thumb for an emergency fund is saving three to six months’ worth of living expenses in a safe, liquid account. But your lifestyle can change over time, so if you have an emergency fund 

Even if you’re already good about managing debt, consider taking steps to help reduce and consolidate it further. For example, if you’re expecting a raise or year-end bonus, consider applying the extra income to any loan or credit card balances with high interest rates.

Then, think about consolidating any remaining debt, which can let you swap the varying interest rates on multiple loans, credit lines, or cards for a potentially lower rate on a single loan. Reducing the number of loans you carry can also help simplify your financial life and ease monetary stress.

Check whether you’re still