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Making Your Money Work: Sustainable Financial Goals For 2025

Posted by: Nick L. in Tips

Did you make New Year’s Resolutions? If you did, you are in great company. Approximately three out of every ten Americans make resolutions. Goals related to saving money, eating healthier, and exercising more are the most common areas of focus. The bad news is that as January passes, most will fizzle out and forget about their intention. While New Year’s Resolutions are a great idea, it can be frustrating to have another year pass without making any headway. We’ve compiled a few ideas for sustainable financial goals that can help you save more money and establish habits that will help you to grow your personal wealth.

Expect the Unexpected

People really underestimate the power of having cash that is easily accessible to use when things pop up. An unexpected illness, car repair or other emergency could have you reaching for your credit card without a plan to pay it off. It is a good idea to keep at least three months’ worth of living expenses in savings. If you do not currently have cash reserves, set a small goal. Work on saving $1000, then when you have that, keep going until you have one month’s reserves. Once you have enough for one month’s expenses, work towards two months of expenses. Before you know it, you will have enough cash to avoid a financial calamity if faced with the unexpected.

Check your Spending

Do you have automatic charges for apps, websites or streaming services? It’s a great idea to take inventory of these types of pay services. If you don’t use them enough to justify the ongoing cost, cancel them. Be aware that some memberships and apps renew automatically. Be aware when they are set to bill again and cancel them before they automatically renew.

Are there other places you could avoid overspending? Whether it is making coffee at home, bringing your lunch, or shopping out your home and auto insurance, it is a good practice to know how your money is spent and eliminate spending that doesn’t provide value to your lifestyle. Freeing up cash flow can give you more money to do things that matter to you.

Checkup on Savings

The beginning of the year is a great time to evaluate your savings. The new tax year may mean opportunities to increase savings in your IRA, Roth IRA and Employer Sponsored Plans. For 2025, IRA and Roth IRA limits remained the same, however 401k limits were increased from $23,000 in 2024 to $23,500 in 2025.

If you reach age 50 in 2025, you will be able to take advantage of catch-up contributions. IRAs and Roth IRAs allow for an additional $1,000, while most employer plans (401k, 403b, and 457 allow for an additional $7,500. New in 2025, participants who are ages 60-63 and will not reach their 64th birthday are eligible for an even larger catch-up.

Even if you cannot afford to maximize your contributions, there are still opportunities to improve your long-term savings strategies. Aim to save 15% of your wages in retirement. If you are below that, increase your savings by 1 or 2% annually until you reach 15%. Know that most people started small and increased savings over time and small changes can really add up.

 Make (or update) your Plan

According to Schwab’s 2024 Modern Wealth Survey, only 36% of people have a written financial plan. While you may not have given formalized planning any thought, having a plan can help you know what to save, how to create tax efficiency, plan for inflation and give you an idea of what your money might be worth at retirement time. It’s important to get on top of your future well in advance. Most people don’t plan to fail in retirement, they fail to plan for retirement.

If you have a formalized plan in place, congratulations! You are ahead of the game. Regular reviews and updates to your plan will show your progress and allow you to make changes as you go.

Not sure where to start? Our team of trusted advisors can help you to set your goals and monitor your progress. Contact us today to get started.

 

Rebecca Agamaite

Investment Advisor Representative 


Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University.

Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

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