As we step into 2025, it's the perfect time to reassess and set new financial goals. Whether you're preparing for retirement, building wealth, or simply aiming for better financial health, having clear and achievable goals is crucial. In this post, we'll guide you through assessing your current financial situation, defining your goals, creating a realistic budget, developing an investment strategy, and monitoring your progress.
- Know Your Net Worth: All assets -and liabilities = Net Worth. Know your net worth and track it each year.
- Analyze Your Spending Habits Understand where your money is coming from and where it's going. Identify your spending weaknesses, strengths, and opportunities
- Evaluate Debt: Identify high-interest debts ( credit cards, personal loans, etc. anything above 7%) and create a plan to pay them down.
- Short-Term Goals: Set goals you want to achieve within the next year, keep it simple, less = more. 1-3 financial goals.
- Medium-Term Goals: Plan for goals within the next 3-5 years, keep it simple, less = more. 3-7 financial goals
- Long-Term Goals: Focus on retirement planning and other long-term financial objectives.
- Track Your Spending: Use tools or apps to monitor your daily expenses. We love YNAB ( not a promotional just who many of us use)
.- Automate and Prioritize Savings: Allocate a portion of your income to a saving account before spending on discretionary items.
- Adjust as Needed: Regularly review and adjust your budget to stay on track.
- Diversify Your Portfolio: Spread your investments across different asset classes to reduce risk.
- Automate your retirement investments: like 401(k) / IRA's, try and save around 10% of your personal income. It you can't do that, start lower. Just starting is so powerful!
- Rebalance Regularly: Periodically review and adjust your portfolio to maintain your desired asset allocation.
- Regular Reviews: Schedule regular check-ins to review your financial plan and progress.
- Stay Informed: Keep up with financial news and trends that may impact your goals.
- Seek Professional Advice: Consult with a financial advisor to ensure your plan remains aligned with your goals.
If this feels overwhelming, you don't know where to begin, or you simple want a financial team around you, then Let's Talk.
Our Financial Planning Membership and is ideal for helping you get and stay strong financially in 2025 and beyond.
This is why we are in business and would love to help you!
All the best,
Your Wela Financial Advisory Team
Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. This article and images may have been enhanced by utilizing artificial intelligence (AI). Brent Forrest & Associates, LLC dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Wela may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
You'll get timely market updates, actionable info straight to your inbox, and get to know us along the way