5 Ways to Be Smarter with Your Money in 2025

Year after year, financial goals are among the most popular New Year’s resolutions—and this year is no exception. According to recent research from the CFP Board, survey respondents named “saving more money,” “reducing debt,” and “improving money management skills” as some of their top resolutions for 2025.

Makes sense, of course. Though money doesn’t necessarily buy happiness, prioritizing smart money management can help you create financial stability—which in turn can lead to less stress and potentially more opportunities to reach your personal goals.

With that in mind, we’ve put together a few tips to help you get off on the right foot financially in 2025, so you can approach the new year with confidence.

1. Make a Point of Reviewing Your Financial Plan Annually

Reviewing your financial plan can help provide motivation and clarity—which could be especially useful if you’re feeling uncertain about what’s ahead for you personally this year. Scheduling a review can give you and your financial advisor time to ensure the information you’re working with is still accurate and includes any important changes in your life. You also can make sure your plan still reflects your goals, and that you understand what you need to do to keep your plan on track.

2. Set a Budget and Define Your Financial Goals

People tend to put off setting a budget because they think it will be too restrictive. But the truth is, if done right, budgeting is about giving your money purpose—which ultimately puts you in control. You don’t have to wonder where your money is going every month—you’re in charge of those decisions. Without a budget and well-defined goals, on the other hand, it can be easy to let your finances drift away from your priorities. Your resolutions to save more money, invest for the future, or reduce high-interest debt may be more difficult to push aside if you hold yourself accountable with a written plan and specific strategies.

3. Assess and Update Your Insurance Coverage to Protect What You Have

The new year can be a great time to reassess your insurance coverage. You can note any relevant events that may have affected your insurance needs, and your financial advisor can help you proactively address potential threats and gaps with an up-to-date, customized and comprehensive risk management plan. Finding the right coverage at the right cost can help you feel more confident that you, your family, your assets and your legacy remain secure.

4. Keep More of Your Money by Prioritizing Tax Planning

Taxes are an inevitable part of life, but that doesn’t mean you have to pay more than your fair share. If your goal is to save more money in 2025, there are several different investment accounts (including IRAs, 401(k)s, health savings accounts (HSAs), and 529 plans) that can help you build wealth while also offering a tax benefit. There are also specific types of investments that can help reduce the drag of taxes on any taxable accounts you own. You can refer to Octavia’s 2025 Guide to Proactive Tax Planning for more information on ways to help maximize your tax savings, and how changing tax laws and inflation-related adjustments might affect your tax bill going forward.

5. Plan for Now, But Also What’s Next

As you think about your financial goals and lay out strategies to help reach them, it can also be helpful to plot out a timeline for success. If your goal is to pay off a high-interest credit card and improve your credit score, for example, how long should that take—six months, a year, or longer? If you hope to buy a new or second home, what’s a realistic timeframe? And how might your short- or medium-term goals affect long-term goals like saving for a comfortable retirement or leaving a legacy for your loved ones? A holistic plan that takes all your objectives into account—and looks at how one financial goal might impact another—can be key to achieving what you want.

Focusing on Your Financial Health in 2025

If you’ve made it a goal to be smarter with your money this year, congratulations! You’ve already taken a big step toward helping to boost your financial well-being.

To really set yourself up for success, though, it’s important to have a proactive plan with specific strategies, measurable goals and a timeline that confirms your commitment.

We hope you’ll let Octavia provide any help you might need to realize your ambitions in 2025 and beyond. Schedule time now so we can discuss what’s next. We can’t wait to share the potential opportunities we see for you and your family in this new year.