It is hard to believe 2024 has just about come and gone, which means it is time to start thinking about New Year’s resolutions. Health and wealth routinely top most people’s list of goals. Racking up debt from holiday shopping and then trying to erase such debt is a classic resolution, but there more be more to consider.

Some general finance tips remain the same, while the current economy has introduced other unique money moves for 2025. My followers are well acquainted with my 4-step financial planning process, so it is only fitting that these resolutions follow accordingly.

1. Protection First

The two financial products that are age and health sensitive are life insurance and disability insurance. No one is getting any younger, and tomorrow’s health can never be guaranteed. Most workers recently finished selecting their group benefits for 2025, and one of these may have been group long-term disability insurance (GLTD).

Recognizing that income is the foundation of all financial planning, protecting it must always be top of mind. Based on one’s situation, individual disability insurance or supplemental insurance might be required to fill any gaps. For anyone who had a life changing event in 2024 such as getting married, having a baby, or taking on a mortgage it may be time review or obtain life insurance.

1. Build Liquidity

I always recommend maintaining an emergency savings of at least six months’ expenses in cash. So much of America’s anxiety around money comes directly from inadequate savings, akin to skating on thin ice.

The end of the year is a great time to have an honest review the budget, calculate average monthly expenses, multiply by six, and then compare this figure to what’s currently available in checking and savings accounts. If the number falls short, increasing liquidity is a great New Year’s resolution.

1. Eliminate Debt

This is one of the most popular, if not most popular, goals within personal finance. Holiday shopping is complete and for many people, credit card balances are the result. While interest rates fell in 2024 and are continuing to come down, credit card interest rates still may be over 20%. Paying off mortgages, student loans, or a car are all common concerns, but if persistent credit card balances are present, they should be the top priority.

Anyone fighting through credit card debt is likely there because Steps 1 and 2 were not fully adhered to, something to remember later in the year. Consumers dealing with credit card debt should focus on the highest interest rate debts first, and consider all possibilities to consolidate such debt whether through a 401(k) loan, Home Equity Line of Credit (HELOC), or 0% balance transfer. Anyone with debt resolutions should also keep an eye on their credit score as they seek to improve their situation.

1. Wealth Building

Investing and getting money to make more money is one of the greatest joys in financial planning, but in my opinion, it should not be considered until Steps 1-3 are taken care of.

Some things to consider for 2025 include rebalancing. The S&P500 is up roughly 24% in 2024, making for back-to-back 20%+ returns in the stock market, something that has happened only a few times in history. Many investor portfolios that have not been closely monitored may have a risk profile that looks vastly different than originally intended since this run up in equities.

On the fixed income side, many savers who have enjoyed higher CD interest rates over the past couple years that are auto-renewing are bound to lock in lower rates as the Fed continues cutting interest rates; they should be mindful of when such CD’s renew and consider alternatives.

Lastly, with the national debt eclipsing $36 trillion, and income tax rates still relatively low since the Tax Cuts and Jobs Act, Roth retirement contributions may be considered to provide potentially tax-free growth and distributions later in life.

Financial goals can make for great New Year’s resolutions, but they should be part of a larger, coordinated financial plan. Whether it is retooling the budget, working towards the classic 20% gross savings rate, or just cutting cable and consolidating streaming services, any improvement begins with intentional effort. Best of luck in achieving your 2025 New Year’s resolutions!

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Bryan M. Kuderna is a Certified Financial Planner™ and the founder of Kuderna Financial Team, a New Jersey-based financial services firm. He is the host of The Kuderna Podcast and author of ,"WHAT SHOULD I DO WITH MY MONEY?: Economic Insights to Build Wealth Amid Chaos"