In the first few months of the new year, many people are setting personal goals to improve their health, relationships, and overall well-being. But one area that often gets overlooked is financial health. At Mirus Financial Partners, we believe this is the perfect time to evaluate your financial situation and adopt smart habits that can create long-term wealth and stability. Here are some financial resolutions to stick with this year that will make a meaningful difference in your financial future.

1. Build an Emergency Fund

Life is full of surprises, and not all of them are pleasant. Whether it’s an unexpected car repair, medical expense, or job loss, having an emergency fund can be a lifesaver. Ideally, you should aim to save three to six months’ worth of living expenses in a separate, easily accessible account. To get started, set a realistic goal. If saving three to six months’ worth of expenses feels overwhelming, start with a smaller target like $1,000. Automate your savings by setting up an automatic transfer to a dedicated emergency fund account every payday. Cut non-essential expenses by looking for areas in your budget where you can temporarily cut back, such as dining out or subscription services, and redirect that money toward your emergency fund.

2. Increase Retirement Contributions

Retirement may feel like a distant goal, but the earlier you start saving, the more time your money has to grow. Increasing your contributions to retirement accounts like a 401(k) or IRA can significantly boost your financial security in the long run. To enhance your retirement savings, maximize employer matching if your employer offers a 401(k) match, making sure you’re contributing enough to take full advantage of it. Take advantage of catch-up contributions if you’re 50 or older, allowing you to contribute extra to your retirement accounts. For 2025, the catch-up contribution limit for 401(k)s is $7,500, on top of the regular $22,500 limit. Increase contributions gradually by committing to raising your retirement contributions by 1% of your income each year. Over time, these small increases can make a big difference.

3. Pay Down Debt

Carrying high-interest debt, like credit card balances, can be a major roadblock to achieving your financial goals. Make 2025 the year you tackle your debt head-on by creating a repayment plan. Focus on high-interest debt first by using the avalanche method to pay off debts with the highest interest rates while making minimum payments on others. Consolidate your debt if you have multiple high-interest debts by considering consolidating them into a single loan with a lower interest rate. Avoid new debt by committing to spending within your means and using credit cards responsibly.

4. Learn About Investment Opportunities

Investing is one of the best ways to grow your wealth over time, yet many people avoid it due to fear or lack of knowledge. This year, resolve to educate yourself about investment opportunities and consider how they can fit into your financial plan. To get started with investing, understand your risk tolerance by assessing how much risk you’re comfortable taking based on your financial goals and time horizon. Diversify your portfolio by spreading your investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk. Work with a financial advisor who can help you develop an investment strategy tailored to your needs and goals.

5. Create or Update Your Financial Plan

If you don’t have a financial plan, now is the time to create one. And if you already have a plan, make sure it’s up to date. A solid financial plan acts as a roadmap, guiding you toward your goals and helping you make informed decisions. When creating or reviewing your financial plan, consider your short-term and long-term goals, identifying what you want to achieve in the next year, five years, and beyond. Review your budgeting and cash flow to ensure your spending aligns with your priorities and that you’re saving enough for your goals. Protect your assets and loved ones by reviewing your insurance coverage and updating your will or trust if necessary.

6. Schedule Regular Financial Check-Ins

Make it a habit to review your financial progress regularly. Whether it’s monthly, quarterly, or semi-annually, scheduling financial check-ins can help you stay on track and make adjustments as needed. During your check-ins, review your budget to ensure you’re sticking to it or to make adjustments if necessary. Evaluate your goals to see if you’re making progress toward your short-term and long-term objectives. Examine your investments to ensure your portfolio is performing as expected or to determine if rebalancing is needed.

7. Ask Mirus Financial Partners to Help

You don't have to go it alone. At Mirus Financial Partners, we’re here to help you achieve your financial resolutions and create a brighter financial future. Contact Mirus for guidance on saving, investing, or planning for retirement. Let’s make 2025 the year you take control of your finances and turn your resolutions into results.