Time for a Financial Reset: Your Guide to Achieving Money Goals in 2025

As we embark on a new year, many of us find ourselves reflecting on our finances. With more than half of U.S. consumers planning financial resolutions for 2025, it’s clear that the desire for better financial health is widespread. At Extreme Investor Network, we understand that making a financial reset doesn’t have to begin on January 1st. If you haven’t set your goals yet, don’t worry! The perfect time to begin is now.

Why Now Is the Ideal Moment for a Financial Reset

Financial advisor Jordan Awoye, managing partner of Awoye Capital in New York City, highlights that the start of the year offers an excellent opportunity for a financial reset. You can assess last year’s achievements, recognize any mistakes, and approach the new year with a clean slate. Plus, with the 2025 tax filing season kicking off on January 27, you’ll find it’s the perfect juncture to review your finances and set your intentions for the year ahead.

Understand the Challenges

According to a recent poll by Discover, common resolutions include saving more, earning more, spending less, improving credit scores, and building emergency funds. However, nearly all respondents anticipate hurdles that might impede these goals, such as inflation, the economy’s state, or unexpected expenses. It’s vital to view these challenges as temporary roadblocks rather than barriers.

Focus on What You Can Control

Staying focused on your financial goals is essential, even when external factors like economic downturns or budgeting regrets can weigh you down. Certified financial planner Corbin Blackwell advises maintaining a positive mindset. Take small, consistent steps toward your financial objectives. Whether it’s saving a little every month or chipping away at debt, every action counts.

Define Your Strategy: Save or Invest?

One major component of your financial reset involves determining whether to save or invest your money. As Natalie Taylor, a CFP and founder of The Goodland Group, suggests, it’s crucial to align your asset allocation with your specific time frames.

Some goals, such as building an emergency fund or paying off small debts, warrant a more conservative approach—what Taylor describes as “base hit” strategies. Focus on high-yield savings accounts or CDs, which can provide you the necessary liquidity without risking your principal.

On the other hand, if you’re looking to tackle “home run” goals—like funding your child’s education or buying property—you may consider a more robust investment strategy involving a diversified portfolio. Evaluate your risk tolerance and investment horizon before making any moves.

Actionable Steps to Achieve Your Financial Goals

Ready to reset? Here are actionable steps for your financial journey:

1. Build a Better Budget: Start by tracking your monthly income and expenses. Ask yourself, "Am I spending more than I’m earning?" If so, identify unnecessary costs and consider ways to increase your income. Aim for at least three to six months’ worth of living expenses saved in an emergency fund to avoid falling back on credit cards during financial setbacks.

2. Address High-Interest Debt: Prioritize paying down high-interest debts, such as credit cards, which often come with rates above 20%. If you have both savings and debt, assess the interest rates to decide whether to allocate more money towards savings or debt repayment. Most advisors agree that reducing high-interest debt should take precedence.

3. Long-Term Savings and Investing: Once you’ve established some financial stability, turn your focus to long-term investments. Contributing to an IRA or 401(k) is vital for retirement planning. Additionally, consider opening a taxable brokerage account for extra funds you can invest over time. The sooner you start investing, the better you set yourself up to harness the power of compound interest.

Motion Over Emotion

Finally, remember that achieving financial success is defined by your unique vision of success. The strategies and steps you put in place today lay the groundwork for a more secure financial future.

At Extreme Investor Network, we’re committed to helping you navigate your financial journey. By signing up for our Money 101, an eight-week newsletter series aimed at improving financial wellness, you’ll gain essential insights tailored for building a robust financial foundation.

Start your journey today and redefine your relationship with money—we’re here to guide you every step of the way!