Hey Taylor – I set some fitness goals for myself as New Year’s resolutions, but a few weeks into January I’m wanting to get my financial life in order. If you had to make a beginner’s to-do list for me, what might it look like? – Nena

Hey Nena – No reason why you can’t focus on fitness and finance for the year. Everyone’s situation is different, but if we’re talking about basic financial goals for the year, here are some starting points:

–1. Build an emergency fund. If you haven’t already started an emergency fund, 2025 is the year to make it a priority. It’s hard for people to start with this because there are so many other pressing bills, but you have to be prepared for the unexpected if you ever want to get ahead.

Having three to six months’ worth of living expenses saved up in a high-yield savings account can make a world of difference when things go wrong. If you’ve already got some savings, ask yourself if it’s really enough. Inflation and rising costs mean that what seemed like a solid emergency fund a few years ago might not cut it today. If that’s the case, aim to increase it by 10% this year. This won’t be easy but setting aside just $50 a month that you’d otherwise spend on food or fun will make a huge difference.

–2. Pay off debt. Since you’re already focused on fitness goals, think of debt as the extra weight that’s slowing you down. It’s not just the monthly payments that drain your budget; it’s the interest that keeps piling up. So, let’s make the goal to get rid of the highest interest debt you have. Prioritize the expensive stuff to make the biggest impact. If you can pay off just one credit card, you immediately free up some monthly spending that can go toward your emergency fund or another outstanding balance.

–3. Invest in your future. If you need to pay off debt and beef up your emergency fund, it’s really hard to imagine investing in retirement as well. Even if you can only spare $50 or $100 a month, starting to invest now will have a huge impact on your future wealth. Time is your best friend when it comes to investing, and the sooner you get in the game, the more you’ll benefit from compounding interest.

Focus on these three things and you will probably have a successful year. Good luck!

TAYLOR J KOVAR
CHIEF EXECUTIVE OFFICER
CERTIFIED FINANCIAL PLANNER™