5 New Year Financial Resolutions to Strengthen Your Finances

The Highlights

• • Start the year with a financial check-up by reviewing your cash flow, spending habits, savings, and debt so your goals are realistic and aligned with how you actually live.
  • Strengthen your foundation by refreshing your budget, paying down high-interest debt, and updating key financial details like beneficiaries, insurance, and estate plans.
  • Plan ahead and stay flexible by preparing for upcoming expenses, building emergency savings, and revisiting your financial resolutions regularly throughout the year.

Before diving into specific financial resolutions, it is helpful to begin with a quick financial check-up. Take a moment to review your income, spending, savings, and debt from the past year. Understanding where your new year finances stand will help make your money resolutions more meaningful and achievable. Look at your monthly cash flow, note any spending patterns that surprised you, and identify areas where you want to improve. This kind of review gives you a strong foundation for setting smarter financial resolutions in the year ahead.

1. What Budget Changes From Last Year Should You Keep This Year?

Did you spend less in certain categories — like travel, eating out, or entertainment — last year? Maintain some of those cuts and incorporate them into this year’s budget for an amazing ripple effect on other areas of your finances. For example, the money you saved on your weekly Friday night dinner-and-a-movie can be used to pay for an overdue home project or saved up for a real night on the town! Remember that every little bit counts!

This is also a great time to refresh your budget with a few practical financial tips. Consider:

• Breaking your spending into categories to get a clearer picture of where your money goes
• Using a simple budgeting method like 50/30/20 to guide your monthly spending
• Reviewing your fixed and flexible expenses to make sure they still align with your priorities
• Using budgeting calculators or automated apps that make it easier to track habits throughout the year
• Resetting your budget if it has not been updated in a while so it reflects your current lifestyle and financial goals

2. How Can Paying Down Debt Help You Keep More Money in Your Pocket?

Credit cards definitely have a role to play, particularly for unexpectedly large expenses. If you carried a balance over a few months last year before paying it off (or are still carrying a balance), make it your goal this year to zero your credit cards out each month! Remember: interest accrues throughout the month for many lenders – don’t pay charges you don’t have to!

If you are working toward paying down debt, consider the following strategies to help you stay motivated and save money over time:

• Use a structured payoff method such as
  • The snowball method: Paying off the smallest balance first.
  • The avalanche method: Targets the highest interest rate first
• Review your total debt to understand how much you owe and where you can make the biggest impact
• Monitor your credit utilization rate, since lowering it can improve your financial flexibility and credit health
• Aim to pay your full balance each month, keeping more of your hard-earned money in your pocket

3. What Financial Planning Steps Should You Take to Protect Your Future?

Be honest: when was the last time you updated your will? What about any trusts or other legal properties? These documents are critical estate planning tools that can really put your mind at ease. Sure, there’s some time and usually some cost associated with reviewing everything – including a potential meeting with an estate planning attorney, depending on the complexity of your situation – but it’s worth every penny should anything happen!

As you review your broader estate and legacy planning, consider taking the following steps:

• Check the accuracy of your will and make updates if you have had major life changes
• Review any trusts or legal properties to ensure they still reflect your wishes
• Consult with an estate planning attorney if you need support or have complex needs

It is also the perfect time to review and update your beneficiaries. In many cases, beneficiaries and addresses can be updated online with just a few clicks. Sometimes, you may need to complete a simple form, so see if the update can be done using a PDF. It is always worth checking in because if it has been awhile, you may be surprised to see who you listed.

To keep everything aligned with your current life stage and financial goals, consider:

• Verifying that beneficiary designations are correct across retirement accounts, insurance policies, and investment accounts
• Updating addresses or contact information if needed
• Ensuring your beneficiary choices match your intentions and overall estate plan

This is also a great moment to review your insurance coverage such as life, home, auto, and disability to make sure your policies still match your needs. Life changes quickly, and your financial protection should evolve with it.

You can strengthen your long-term financial stability by:

• Confirming that your insurance coverage levels still fit your lifestyle
• Adding or adjusting policies to reflect major life changes
• Coordinating insurance and estate plans so everything works together

Taking these steps strengthens your long-term financial stability and supports more confident decision-making throughout the coming year.

4. What Should You Be Doing Now to Prepare for Future Financial Needs?

The best financial planning considers your future. For example, are there any big expenses coming down the pipeline — tuition needs, vacation plans, or major home repairs, perhaps — that you’ll need to pay for? Let’s make sure your financial plan reflects any of these expenses.

To prepare for upcoming costs, consider:

• Identifying major expenses you expect this year such as tuition, travel, or home repairs
• Setting aside funds in advance so these expenses do not disrupt your monthly cash flow
• Adjusting your budget to reflect new priorities or financial goals

In addition to near-term expenses, think about your longer-term goals. Ask yourself:

• Are you saving enough for retirement to stay on track with your future needs
• Do you have an investment strategy that supports your objectives and timeline
• Is now a good time to consider education savings if your family is growing
• Should you review or expand your insurance coverage to protect your long-term financial health

And if you do not already have one, consider building or strengthening an emergency fund. Most experts recommend saving three to six months of expenses to protect yourself from unexpected financial setbacks.

To make your emergency fund goals more achievable:

• Start small with 25 or 50 dollars set aside automatically each month
• Increase contributions gradually as your budget allows
• Keep the funds in an accessible account so you can use them if needed

Even small, consistent contributions can create meaningful momentum and support your broader financial resolutions.

5. Why Is It Important to Review Your Financial Resolutions Throughout the Year?

Financial resolutions work best when you revisit them regularly. Set aside time each quarter to check in on your budget, savings, debt levels, and investment progress. Life can change quickly, and your financial plan should change with it. Regular reviews will help your new year financial resolutions stay on track and keep you motivated throughout the year.

During each quarterly review, consider:

• Revisiting your budget to ensure spending still aligns with your priorities
• Tracking your savings progress, including emergency fund contributions
• Evaluating your debt balances and adjusting payoff strategies if needed
• Reviewing retirement and investment contributions to confirm they match your long-term goals
• Noting any life changes such as new expenses, income adjustments, or family needs that may impact your financial plan
• Assessing your insurance coverage to make sure it continues to provide the protection you need

To support your ongoing progress, you can also:

• Use Forward Bank’s financial calculators to estimate savings growth, loan payoff timelines, or retirement needs
• Schedule time with a Forward Investment Services advisor for personalized guidance
• Set simple reminders or automate updates so staying on track becomes part of your routine

By building regular check-ins into your year, you can keep your finances flexible, intentional, and moving in the right direction.

Helpful Tools to Support Financial Resolutions

Use our financial calculators to estimate savings goals, map out debt payoff strategies, and explore retirement needs. These tools can help you visualize progress and make more confident financial decisions throughout the year.

• Savings Goal Calculator
• Loan Payoff Calculator
• Debt Restructuring Calculator
• Retirement Savings Calculator

By using the right tools, reviewing your progress regularly, and seeking guidance when you need it, you are taking meaningful steps toward a stronger financial future. And whenever you are ready for support, the Forward team is here to help you move your financial goals forward.