6 Things to Know About Financial Planning in the New Year

Does your new year’s plan include a glass of bubbly, followed by an oath to be the perfect planner, spender and saver in 2025? Welcome to the club! There’s nothing like an improbable aspiration to do everything differently, from organizing your entire home to swearing off cat videos forever. It could happen!

Want to be better with money in the new year for real? An ongoing commitment to follow up on your plans requires a bit of discipline, but once you’re on a roll – no matter how small – it won’t feel like it. You might even become excited by the prospect of a more promising and stable future. We recommend a more realistic path supported by smart financial services, starting with the six lessons below.

1. Don’t Be Too Scared to Better Manage Your Finances

The first thing to know about financial planning is that it can apply to anyone. The term may sound a bit intimidating, but it can apply to anyone who has a few dollars and wants to build on them while controlling where they go. That includes folks who fit any of these descriptions:

1. Dream of a more financially secure future
2. Have any debt
3. Have an income, however uneven or unpredictable
4. Aspire to make more money someday
5. Avoid talking about money due to stress or embarrassment
6. Want to start financing goals like buying a home or going back to school

It’s ok to be nervous as you get started. You don’t need an accountant to gain a deeper understanding of your relationship with money – just some common sense and an openness to learning.

2. Being Better with Money in the New Year Starts Now

The next thing to know? It can start at any time. Realistically, securing your financial future requires a willingness to get started even if you don’t feel “ready.” If you’re like many of us who wait for January 1 to get your ducks in a row, consider this your planning phase. It can take more than a few days for changes in spending habits to take root. There may be a little trial and error involved, and that is ok.

3. Create Financial Goals – Starting with an Emergency Budget!

One thing every American should have is a contingency or emergency budget. Add a column to your budget spreadsheet that can help cover you in case of a car accident or medical emergency. You never know when you will be faced with an unexpected expense. And if it never happens, dip into it for a vacation you’ve always wanted to take.

4. Address Bad Habits That Have Nothing to Do with Money

This piece of wisdom is not repeated enough. Sometimes the way people spend does not happen in a vacuum. Someone who lacks control may have an underlying addiction that also should be addressed, possibly in therapy.

Examine your life more broadly. What is a habit you have that you can control and might be holding you back? What’s your time management like? Most people regret wasting time on activities that don’t move their lives forward and may even hold them back. If you spent less time on social media, maybe you could get up a half hour earlier in the morning. That time adds up into hours you could spend pursuing personal goals. Perhaps more important, reducing screen time has been shown to help people feel more calm and in control of their lives.

5. New Year’s Money Goal: Find New Sources of Inspiration

Don’t get stuck in the same cycle of denial. Try to come up with things you haven’t tried before, no matter how small. We’ve got some ideas:

• Create a visual representation of your money – and life – goals. A 2025 vision board, perhaps?
• Work on your financial literacy. Start by reading our other financial blogs here.
• Try something new – like “loud budgeting.” Look it up on TikTok. Young people are finding inspiration by sharing their goals with others, but there’s no age limit for building a community of like-minded people to share money ideas with.
• Journal about money habits you hope to change. People swear by this method. Write down your goals regularly. No matter how unrealistic, journaling about your future vision can reset your internal clock and orient you in the right direction.

6. Use CCEA Financial Services in Illinois

CCEA Currency Exchanges know about the kinds of money issues happening in the neighborhoods where we are located. Allow a CCEA Currency Exchange near you to provide the convenient, daily support you need to handle financial tasks responsibly in the new year.