Dear Mr. Market:
Ah, the start of a new year—the smell of fresh planners, gym memberships, and resolutions destined to be abandoned by February. But not this year. Not for you. Why? Because when it comes to financial planning, you’re ready to write it down—and studies show that writing down your goals makes you 42% more likely to achieve them. So, grab that pen and let’s get to work. Here’s your top 10 financial planning checklist for the new year.
Read more: 42% More Likely to Succeed? Write Down Your 10 Financial Goals for 2025!
1. Create or Refresh Your Budget Think of your budget as the foundation of your financial house. If it’s shaky, everything else is at risk. This shouldn’t be done by just eyeballing things; use a spreadsheet or find one of many apps/tools available online. Review your spending habits, plug any leaks, and allocate resources toward your top priorities. Make room for saving and investing—not just spending.
2. Build (or Rebuild) Your Emergency Fund The unexpected is, well, expected. A good rule of thumb? Three to six months worth of expenses tucked away in a high-yield savings account. Bonus points if you automate contributions to make saving effortless.
3. Maximize Retirement Contributions Contribute as much as possible to your 401(k), IRA, or Roth IRA. For 2025, the IRS has increased contribution limits—don’t miss out. And if you’re over 50, catch-up contributions are your new best friend.
4. Review Investment Allocations Markets evolve, and so should your portfolio. Rebalance allocations to ensure your risk level matches your goals. Remember: investing isn’t about timing the market, it’s about time in the market.
5. Tackle Debt Strategically Not all debt is created equal. Prioritize high-interest debt first (we’re looking at you, credit cards) while maintaining manageable payments on lower-interest loans like mortgages. Consolidation might be a smart move too.
6. Optimize Tax Strategies It’s not what you make—it’s what you keep. Meet with your tax advisor to discuss harvesting tax losses, Roth conversions, and charitable contributions that might save you money.
7. Update Estate Plans If you have kids, own a business, or just want to make life easier for loved ones, make sure your will, trusts, and beneficiary designations are up to date. A little planning now avoids big headaches later. Additionally, if you have everything legally buttoned up, don’t forget to fill out the My Portfolio Guide, LLC template that we call a “Letter to My Family”. (click here to revisit that if you haven’t done so already)
8. Insure What Matters Most Your family, your income, and your health—these are non-negotiables. Review life insurance policies, health coverage, and long-term care options. Don’t forget to evaluate property and liability coverage too as this should ideally be done an annual basis.
9. Plan for Big Expenses Whether it’s a dream vacation, a child or grandchild’s college tuition, or a home renovation…large expenses need strategy. Start earmarking funds now to avoid panic later.
10. Track Progress Regularly Financial plans aren’t ‘set it and forget it.’ Schedule quarterly reviews to measure progress and adjust as needed. Treat your finances like a business—after all, your net worth is your bottom line.
The Power of Writing It Down
Look, we all know intentions are great, but actions win the game. Studies reveal that writing down goals increases the likelihood of success by 42%—a stat too good to ignore. So write it down, revisit it often, and take control of your financial destiny this year.
New year, new financial you? Absolutely. And My Portfolio Guide, LLC will be right here, cheering you on. We encourage you to reach out directly to us with your list of specific goals and not only will you find yourself more accountable but it helps us calendar reminders and check-ins to make sure we’re on track with you. Think of this “exercise” in another way…
If your goal is to get physically fit in the year to come and you know that your personal trainer is waiting for you at 5am in the gym, you’re more likely to show up!
Ready to Tackle 2024?
Whether you’re fine-tuning your budget or planning your retirement roadmap, don’t go it alone. Let’s make this year one for the financial record books.
Happy Planning and best to you in 2025!
