As we say goodbye to 2024 and welcome 2025, it is a great time to reflect on our goals and dreams. Whether it is improving our health, enjoying hobbies, or spending more time with our loved ones, we all have something we want to achieve. Along those lines, have you thought about your financial goals?

Best Strategies For Planning And Budgeting

Set SMART Financial Goals

When setting financial goals, make sure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of telling yourself to "save more money," try something specific like "save $5,000 for an emergency fund by the end of the year.”

SMART goals give you clarity and make it easier to track your progress. Start small and build up as you go.

Spend Less Than You Earn

This one might seem obvious, but if your income has decreased or expenses are rising, it is important to adjust your spending habits. It can be tempting to continue spending like you did prior to retirement. Rutgers University offers a simple spending plan worksheet to help you get a clear picture of your expenses. Click here to download the worksheet.

Be Future-Minded

Research shows that people who are “planners” are more successful financially and feel better about their financial situation than those who do not prioritize planning. Planning includes calculating the savings needed for future goals and preparing for potential challenges like debt or emergencies.

Prioritize Debt Repayment

If you have debts, make a plan to pay them off as quickly as possible. Focus on high-interest debts first, as they can cost you more in the long run. You can use the snowball method (paying off the smallest debts first) or the avalanche method (tackling the highest interest debts first) to stay motivated and make steady progress.

Save And Invest Regularly

Make regular deposits to savings plans like a 401(k). A good strategy for beginners is dollar-cost averaging. For example, if you invest $100 in a mutual fund every month, you buy more shares when prices are low and fewer when prices are high. This may help you build wealth over time. Automate your savings through employer retirement plans or automatic investment plans.

Credit Utilization Rate

Keep your credit use below 30% of your total available credit. You can calculate this by dividing the total amount on all your credit cards by your total available credit. Using more than 30% of your available credit can impact your credit score.

(Total Outstanding Balances on Credit Accounts) / (Total Credit Limits) x 100 = Credit Card Utilization Ratio

Evaluate Your Emergency Fund

Life is known to throw us some curve balls, whether that is with unexpected medical costs, income or job loss, or home repairs. It is important to have a safety net. Do you have enough saved to cover three to four months of expenses if needed? Asking yourself questions like this can help you understand what you need for your emergency fund.

Review And Adjust Your Plan Regularly

Financial planning is an ongoing process. Regularly review your budget and goals to ensure you are on track. Review your subscriptions (sometimes it is easy to forget about them) and take a look at your daily habits. As life changes, you may need to make changes to your plan. Stay flexible and be ready to adjust as needed.

Get Started On Your Financial Journey

This year, take control of your finances and achieve your goals. With Sun Canyon Bank by your side, you will have the support and guidance you need. Contact us today to schedule a consultation and take the first step toward a bright financial future.