After a year marked by the ongoing effects of inflation and rising living costs, many people are entering 2025 with a renewed commitment to financial responsibility. According to Fidelity Investments, nearly two-thirds (65%) of Americans are planning to set a financial resolution for the year ahead, reflecting a shift toward more thoughtful and disciplined money management. Whether you’re looking to overhaul your personal finances, save for a major life milestone, or simply gain better control over your spending, it’s never too late to make meaningful changes.

A strong starting point is to take a close look at your financial situation—reviewing your income, expenses, debts, and savings. By analyzing your sources of income, tracking your expenditures, and listing your debts, you’ll gain clarity on what needs immediate attention. Similarly, assessing the health of your savings will help you determine if you’re on track to meet your long-term financial goals.

Setting Clear Financial Goals
Setting clear financial goals is essential for securing your financial future. Be specific about your objectives – whether it’s paying off high-interest debt, building an emergency fund, saving for retirement, or planning for a major purchase. Clear goals help keep you focused and motivated throughout the year.

Once your goals are defined, the next step is creating a realistic budget. One effective approach is the 50/30/20 rule: allocate 50% of your income to essentials, 30% to discretionary spending, and 20% to savings and debt repayment. Budgeting tools can provide additional support to help you stay on track. It’s also crucial to monitor your discretionary spending, as small, everyday purchases can add up quickly and hinder your progress toward your financial goals.

“Financial wellbeing is essential, whether you’re just starting your financial journey or have years of experience. By understanding how to manage your finances properly, you’ll be equipped to make informed decisions about spending and saving, while also improving your well-being by increasing confidence and reducing stress.”
– Jayna Gougler, Senior Corporate Wellness Coordinator

Tackling High-interest Debt
One of the most critical elements of financial health is addressing high-interest debt. Whether it’s credit card balances, personal loans, or mortgages, high-interest debt can weigh heavily on your finances. Focus on paying it down as a top priority, using strategies like the debt avalanche method (tackling the highest-interest debt first) or the debt snowball method (starting with the smallest debt to gain momentum). You can also explore options such as balance transfer credit cards or debt consolidation loans to reduce interest rates and accelerate your repayment. At the same time, it’s essential to build an emergency fund, which provides a financial cushion in case of unexpected expenses. Aim to save at least three to six months’ worth of living expenses in a high-yield savings account to ensure you’re prepared for life’s uncertainties.

Save for Retirement as Early as Possible
In addition to building an emergency fund, prioritizing retirement savings is essential for securing your financial future. The earlier you start saving for retirement, the more time your money has to grow. One of the most effective strategies is to maximize contributions to tax-advantaged retirement accounts like 401(k)s, IRAs, or Roth IRAs. These accounts not only reduce your current taxable income but also offer tax benefits that can help accelerate your savings, either through tax-deferred growth or tax-free withdrawals, depending on the account type.

If your employer offers a 401(k) match, make sure to contribute enough to take full advantage of this “free money.” Another important area to focus on is investing. Start small and build your portfolio over time, ensuring you diversify your investments to manage risk. For beginners, low-cost index funds are an excellent option as they provide broad exposure to stocks and bonds with minimal fees. The earlier you begin investing, the greater your potential for long-term growth and financial security.

Work with a Trusted Financial Advisor
At BSI, we strongly encourage employees to work with a financial advisor, such as our trusted partner at Legacy Planning. Partnering with a financial advisor provides personalized, expert advice tailored to each individual’s unique financial situation. This collaboration can be a game-changer in helping employees achieve their long-term financial goals, whether they’re focused on retirement, wealth-building, or navigating complex tax strategies. The advisors at Legacy Planning offer a comprehensive range of services, from retirement planning and investment management to tax optimization and estate planning. Their expertise helps employees create a financial roadmap that aligns with their goals, providing the clarity and confidence needed to make informed decisions.

If you don’t already have a financial planner, it’s essential to find one with the right experience, credentials, and a proven track record. Look for an advisor who understands your unique financial situation and personal values, and who can provide strategies tailored to your specific needs. It’s also crucial to understand the advisor’s fee structure—whether they are fee-only, commission-based, or a hybrid model—to ensure their compensation aligns with your financial priorities. By taking the time to choose the right financial advisor, you can make more informed decisions, achieve better financial outcomes, and gain the peace of mind needed to confidently work toward securing your financial future.

Make Intentional Decisions that Support Your Long-term Vision
Creating habits that align with your long-term goals and values is essential for building a life of financial security and personal fulfillment. It starts with a deep understanding of what truly matters to you—whether it’s financial independence, family security, personal growth, or making a positive impact in your community. Once you have clarity on your values and objectives, you can develop daily financial habits that support them. For instance, if you prioritize financial security, you might make it a habit to automate your savings and investments, ensuring consistent contributions toward your retirement fund or emergency savings.

Similarly, if freedom and flexibility are important to you, you might focus on minimizing debt and creating multiple streams of income. The key is to make intentional decisions that support your long-term vision, whether it’s resisting impulsive spending, living below your means, or choosing work that brings you both income and fulfillment. Over time, these habits compound, helping you stay on track and make progress toward achieving your financial goals, all while staying true to your values. Just as with any meaningful change, it requires discipline and consistency, but by aligning your financial behaviors with your personal principles, you can build a future that reflects the life you truly desire.

Safeguard Yourself Against the Unexpected
Another crucial element of financial stability is safeguarding yourself against the unexpected. Our benefits consultants go beyond traditional insurance by providing benefit solutions that protect employees in case of unforeseen events. In addition to standard health and life insurance, we offer coverage for critical illnesses, long-term short-term disability (STD), hospital indemnity, and more. These benefits help ensure that employees and their families are financially supported during challenging times, whether it’s dealing with a serious illness or recovering from an accident. With BSI’s comprehensive benefits packages, employees can focus on their recovery without the added stress of financial uncertainty.

Thrive in the Year Ahead
Getting financially on track in 2025 is about developing habits that align with your long-term goals and values. While it takes consistent effort, the right strategies will help you build a more secure and prosperous future. Partnering with a financial advisor and taking advantage of employee benefits will provide the support needed to safeguard your financial health. Start small, stay committed, and continuously refine your financial plan as your life evolves. By doing so, you’ll be well-positioned to achieve your financial goals and thrive in the years ahead.

(1) https://newsroom.fidelity.com/pressreleases/fidelity-s-16th-annual-resolutions-study–americans-gearing-up-for-unexpected-financial-events-in-20/s/5613c543-fa52-4539-a690-a9d833773754