Financial Planning Health Checkup Tips for 2025

As we set our fitness goals for 2025, it’s also a good time to complete a financial checkup. Here are a few areas to consider:

Create and Stick to a Budget: Track your income and expenses to identify areas where you can cut back and save more.
Use Free Financial Tools: Utilize budgeting apps and financial calculators to help manage your finances effectively.
Set Financial Goals: Establish both short- and long-term goals to stay motivated and focused.
Pay Down Debt: Focus on paying off high-interest debt first to reduce financial stress and save on interest payments. Talk to your financial/investment advisor about the difference between good and bad debt.
Use the 80/20 Rule: Set aside 20% of your monthly income (pay yourself first) for savings and allocate 80% for everything else.
Build an Emergency Fund: Aim to save 3-6 months’ worth of living expenses to cover unexpected costs.
Review and Adjust Insurance Policies: Ensure you have adequate insurance coverage for health, life, and disability. Also, update your insurer or advisor if you’ve had a change of address or beneficiary.
Take Advantage of Tax Benefits: Stay informed about tax deductions and credits to maximize your tax savings.
Monitor Your Credit Score: Regularly check your credit report and score to maintain good credit health.
Seek Professional Advice: Consult with your portfolio manager/investment advisor for personalized guidance and strategies.