As we step into 2025, it’s time to set new intentions and create a plan to achieve your financial goals. Whether you crushed your money targets last year or felt like you were just getting by, this is the perfect opportunity to reflect on your progress and reset for success. By taking a thoughtful approach to your finances, you can start the year with clarity, confidence, and a solid plan to reach your goals in 2025.
Here’s how you can reflect on your 2024 financial journey and start building momentum for an amazing year ahead.
Step 1: Reflect on Your 2024 Spending
Understanding where your money went in 2024 is the foundation of your financial reset. Spend 15–20 minutes reviewing your budget, bank statements, or budgeting app to identify trends in your spending. While reviewing your spending ask yourself the following questions:
- Did my spending align with my financial goals?
- Where did my money go?
- Were there any unexpected expenses?
- How am I feeling about where I am right now?
As you are reviewing this data, think about the financial goals that you have for the new year. Then categorize your spending into groups like housing, groceries, and entertainment. Look for patterns and ask yourself if those spending habits support your 2025 financial goals. Adjust your spending goals accordingly and get ready to rock this new year.
Step 2: Celebrate Your Wins and Acknowledge Setbacks
Financial progress isn’t just about the numbers—it’s also about the lessons you learn along the way. Take time to celebrate the wins, whether it is paying down debt, saving a little extra, or sticking to your budget for a month.
Equally important is reflecting on setbacks without judgment. These moments offer valuable insights into ways that you improve moving forward. Write down three financial wins from 2024 that you’re proud of and one money lesson you learned. Keep this on a sticky note on your bedroom mirror or as wallpaper on your phone so that you can keep your wins top of mind throughout the year.
Step 3: Define Your Financial Goals for 2025
Clear and specific goals will act as your roadmap for the year. Avoid vague statements like “save more money” and aim for actionable targets instead. For example:
- Save $5,000 for an emergency fund by December.
- Pay off $2,000 in credit card debt by mid-year.
A simple way to get start this process is by writing down your top 1–3 financial goals for 2025. Then break these goals into smaller, manageable tasks you can tackle each month.
Step 4: Build a Realistic 90-day Budget
A fresh year calls for a fresh budget! Your budget should reflect your current needs, financial goals, and any adjustments you want to make for the new year. Start small by planning for the first quarter, and give yourself room to adjust as needed.
You can use the Financial Reflection and Success Workbook to create a 90-day budget that aligns with your financial goals. This spending plan will help you prioritize your financial goals while staying flexible.
Step 5: Refresh Your Emergency Fund or Start a Savings Challenge
If your emergency fund needs a boost, make it a priority for 2025. Even small contributions can add up over time. Also, think about starting a savings challenge like the 52-week challenge or a “no-spend” week to keep saving fun and engaging.
There are lots of challenges to choose from so don’t get caught up trying to pick the right one. Simply choose one savings strategy that works for your lifestyle and commit to it for January. Building momentum early in the year will make it easier to sustain throughout 2025.
Take Action Today
Reflecting on your finances isn’t just about looking back—it’s about creating a plan to move forward with purpose. Whether you’re starting fresh or building on last year’s progress, these five steps can help you create the financial clarity you need to achieve your goals in 2025.
Ready to take the next step? Download the free 2024 Financial Reflection and Success Workbook to guide you through these exercises and set yourself up for success this year.