New Year, New Money Habits: 4 Money Moves to Make in 2025

It’s the third week of January and its the perfect time to focus on making your money work harder for you. Last year’s economic ups and downs challenged many wallets, but now is your moment to create positive momentum for your financial future. No matter where you are in your journey, here are 4 actionable steps will set you on the path to success:

1. Boost Your Emergency Fund

An emergency fund is your safety net when life throws surprises your way—whether it’s an unplanned medical expense or a sudden job change, having an emergency fund (aka rainy day fund). Some financial experts suggest saving 6-9 months' worth of living expenses. Yes, that is a lot here are some tips on how to start.

Start Here to build an emergency fund:

Begin with what’s manageable, try to start saving $10 or $40 per paycheck. Place these savings in a high-interest savings account so that this money can earn more over time.
Set up automatic transfers, from your checking account to the High Interest Savings Account, to make saving effortless. Consistency is key—small deposits grow into a solid cushion before you know it.

2. Ditch the Budget and Upgrade to a Spending Plan

Traditional budgets can feel restrictive, much like crash diets. A spending plan, on the other hand, empowers you to manage money in a flexible, realistic way.

A spending plan helps allocate funds for needs, wants, savings, and debt repayment while giving you room for guilt-free fun. It evolves as your income and goals change.

Pro Tip: Use the 20/50/20/10 rule as a starting point—allocate 20% to yourself first (pay yourself first rule), then 50% for essentials (Rent, mortgage, car payment, utilities, etc.), 20% for deb repayment, and 10% for fun!

3. Create a Debt Payoff Strategy

Debt can be a stepping stone or a stumbling block—it all depends on your strategy. Get started by listing all your debts and crafting a clear payoff plan.

Choose a Strategy:

The Snowball Method focuses on clearing small debts first, building motivation with each win.
The Avalanche Method targets high-interest debt, saving more in the long run.

Pick the method that suits your style and commit. If you have a lot of debt to pay off, start with the Snowball method can be a great way to start to tackle debt. This process also builds your confidence and once you start on this journey you can switch to Avalanche method to pay of debt faster.

4. Find a Financial Advisor You Trust

Working with a financial planner or an advisor can give you expert guidance and a custom strategy. The key is finding someone who aligns with your goals.

How to Choose Wisely:

Ask about their approach to financial planning and how frequently they meet clients.
Share your financial dreams and evaluate their roadmap for helping you reach them.
Ensure they are a fiduciary, meaning they’re legally obligated to act in your best interest.

A good planner becomes your trusted partner for navigating major milestones—whether it’s buying a home, starting a business, or planning for retirement.

The Bottom Line

The path to getting good with money is progress, not perfection. Small, and consistent actions add up. So, start today, stay focused, and make 2025 the year you step into greater financial freedom and confidence.