New Year’s Resolutions–Let’s Thrive in ‘25
As we enter 2025, I find myself looking forward to what this new year will bring. It feels sort of magical to flip the calendar over and ponder the possibilities. After spending the last few months winding down 2024 and focusing on year-end financial tasks, I find it refreshing to shift my focus to making improvements for both my financial and personal life. Naturally, what’s January without a few New Year’s resolutions, right? Like most folks, I’d like to get a few more steps in each day and drop a few pounds. Sure, my daughters snickered hearing this after watching me enjoy a few too many pieces of pie these past couple of weeks, but I’m not deterred.
New Year’s resolutions often have a bad rap, but that doesn’t mean that we don’t still make the effort. A recent poll found that about 37% of Americans say they attempt them, with 87% saying they were very or somewhat likely to keep it through the year₁. The top resolutions cited include improving financial mental and physical wellness, which isn’t surprising. Also not surprising is how challenging it can be to stick to them, with most folks losing their motivation within 2 to 4 months of the new year₂.
But making positive changes doesn’t have to be hard. Resolutions don’t need to be grand or life changing. One-time steps and small adjustments can add up to real change and give us a sense of accomplishment too. So, I’d like to spend our time this week reviewing some areas you might focus on to position yourself for greater success, both financially and health-wise, without requiring a serious time commitment.
Let’s start with a quick one. Take a few minutes and check your credit report. Just like you may regularly review your budget, make it a point to check your credit report at least annually, and ideally quarterly. Your credit score is a quick indicator of your credit health, but also offers a more detailed look at your history. Your credit is an important part of your finances and regularly reviewing it also can help you spot potential fraud.
If you want to make improvements to your physical and mental health, take time to understand your employer-offered benefits. Not only does your employer likely offer a variety of financial and retirement planning resources (which you should absolutely take advantage of!), but many also offer broader wellness benefits such as in-house fitness facilities, subsidized gym memberships, daycare services, social groups and activities, mental health resources, and more. Some additional financial benefits may also include student loan management or even access to financial advisors. Make sure you’re looking beyond your paycheck and making the most of your compensation package now to reap the maximum benefits throughout the year.
Do you want to focus on your relationships and social connections? These don’t have to cost a thing, and the rewards can be significant. For example, schedule quality time with family, even if it’s just eating dinner together a few times each week. And put your phone down at dinner. Plan monthly outings with friends so you can make memories and not excuses. Have weekly date nights with your partner. It might feel awkward to have to schedule time for romance, but you’ll likely find yourself looking forward to it and making room for it in your week if it’s on the calendar.
On the financial side, take a look at your spending and eliminate unnecessary recurring subscription fees. For example, I signed up for a monthly car wash membership last year but soon realized that I’m not using it nearly enough to justify the expense. In fact, I find that I really enjoy washing my car myself on nice weekend afternoons, so I cut that one out pretty easily. Perhaps you signed up for a few trial cable channels, and you’re now getting charged a pretty penny each month. Do you watch enough TV to make the cost worthwhile? You might consider paring back to just one or two channels, watching your favorite series for a while and then switching to a new channel every few months. This way you still have access to fresh content but aren’t paying for multiple channels at once.
Take a look at the interest rates you’re paying. The past few years have been a roller coaster of interest rate hikes and decreases, and you might find that there are opportunities to refinance or consolidate loans and credit cards. If you bought a home within the past couple of years, your mortgage interest rate may be higher than today’s rates. Run the numbers to see if it makes sense to refinance. Also, take a look at credit cards offering low introductory rates. Some cards today are offering 0% interest for up to eighteen months on balance transfers, which could save you a lot of interest. Of course, be sure to read all of the terms and conditions, especially how the interest rate will change after the introductory period, as well as any additional annual fees assessed. Your goal here is to alleviate the burden of indebtedness and pave the way for long-term financial stability.
And of course, revisit your retirement plan and create specific action steps. Consider increasing your 401(k) contributions in order to gain the full match from your employer, even if it’s just by 1%. Does your employer offer a Roth option? This can be a great opportunity to help you mitigate future tax risks. Have you built downside risk mitigation strategies into your retirement plan? If not, why? With market volatility expected to continue well into 2025, it’s crucial to be proactive and ensure you have a plan to not only grow your money but help protect it from unnecessary losses.
Making improvements in our lives is always a positive thing, whether you call it a resolution or just personal growth. Your life is the result of your choices, so make 2025 really count.
And as always - be vigilant and stay alert, because you deserve more!
Folks, have a great week and may we all thrive in ’25!
Jeff Cutter, CPA/PFS is President of Cutter Financial Group, LLC, an SEC Registered Investment Advisor with offices in Falmouth, Duxbury, and Mansfield, MA.
Insurance offered through its affiliate, CutterInsure, Inc. We do not offer tax or legal advice. Jeff can be reached at jeff@cutterfinancialgroup.com. This information is intended to provide general information. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain a better understanding of the subject of the article. Different types of investments involve varying degrees of risk, including the potential for loss. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Market data and other cited or linked-to content is based on generally available information and is believed to be reliable. Cutter Financial does not guarantee the performance of any investment or the accuracy of the information contained in this article. Cutter Financial will provide all prospective clients with a copy of Cutter Financial’s Form ADV 2A, Appendix 1, applicable Form ADV 2Bs and Form CRS as well as the firm privacy policy. Please contact us to request a free copy via .pdf or hardcopy. 1. https://tinyurl.com/bdfkkmzu 2. https://tinyurl.com/bdfkkmzu
