
January is Financial Wellness Month – Financial Smart Goals
After a busy (and costly) holiday season comes January – Financial Wellness Month. This makes it the perfect time to set the stage for your financial journey in 2025.
Setting realistic financial goals is more than just listing what you’d like to achieve. It’s about creating a roadmap that guides your spending, saving, and investing decisions throughout the year. Whether you want to pay off debt, build good credit, or start saving for the future, establishing specific and actionable financial goals can give you a solid foundation to build upon.
In this article, we’ll discuss practical tips to help you set and achieve SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) financial goals that align with your long-term objectives. With a clear plan and a commitment to follow through, you can take control of your financial future.
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- Create a Plan to Pay Back Your Student Loans
As of Q2 2024, Americans hold a total of $1.74 trillion in student loan debt, covering both federal and private loans.Student loans can feel like a heavy financial burden, but having a plan can make repayment manageable and less overwhelming. Begin by assessing the total amount you owe and the interest rates and terms of each loan. Understanding your debt is the first step in creating a realistic repayment plan.Consider setting a target amount to pay each month, or aim to pay a little extra on your principal balance whenever possible to reduce the interest over time. If you’re struggling, look into options such as income-driven repayment plans, loan consolidation, refinancing, or even federal student loan forgiveness programs.“The key is to create a manageable, consistent repayment strategy and stick to it,” advises Michael Norton, Senior Vice President, Investments at David Lerner Associates, Inc.“Paying down your student loans can free up income for other financial goals and give you peace of mind as you make progress.”
- Learn About Debt & How to Manage It
Debt is a reality for many people, but managing it responsibly can reduce financial stress and improve your credit health.
Start by listing all your debts, including credit cards, personal loans, and any outstanding medical or personal debts. Knowing your total debt picture will help you set priorities.One popular approach is the “debt snowball” method, where you focus on paying off your smallest debt first and then move to the next. Alternatively, the “debt avalanche” method targets high-interest debt first to reduce the overall interest you pay. Whichever strategy you choose, committing to a plan will bring you closer to financial freedom.Setting small, achievable milestones, like reducing debt by a specific amount each month or quarter, can keep you motivated. Managing debt well is an essential step toward financial wellness and achieving your larger goals. - Building Good Credit
Good credit is more than just a number; it’s a valuable asset that opens doors to better loan terms, lower interest rates, and even favorable insurance premiums. Improving your credit doesn’t happen overnight; consistent habits can lead to steady progress.Start by reviewing your credit report from all three major credit bureaus. Look for errors and dispute inaccuracies that could drag your score down.Paying your bills on time is one of the most important ways to build good credit. Set up automatic payments or calendar reminders to avoid missed due dates. Additionally, keep your credit utilization ratio low—aim for using less than 30 percent of your available credit. If you carry balances on credit cards, try to pay them off or at least reduce the balance each month.By maintaining good credit habits, you can establish a strong financial reputation that will benefit you in the long term. Whether you plan to buy a home, secure a loan, or simply want peace of mind, good credit can be a valuable tool. - Think Long Term: Set Up Savings, Investments & Retirement Accounts
Setting long-term financial goals allows you to build a solid foundation for your future. One of the best ways to start is by establishing a savings account specifically for long-term goals, whether it’s an emergency fund, a down payment for a home, or a future vacation. Consider setting up automatic transfers into your savings account each month, so you consistently put money aside.Investing is another powerful way to grow your wealth over time. If you’re new to investing, consider consulting with a financial advisor who can guide you based on your risk tolerance and goals. Mutual funds, stocks, and bonds can be part of a diversified investment portfolio that helps you achieve your long-term financial aspirations. Start small if you need to, but remember, consistency is key.Retirement accounts, such as a 401(k) or an IRA, offer tax benefits and compound growth, making them ideal for long-term wealth-building. Contributing even a small percentage of your income toward retirement can make a big difference over time. Review your retirement plan regularly, especially as you approach milestones like getting a raise or paying off debt, to see if you can increase contributions. - Set SMART Financial Goals to Stay on Track
The concept of SMART goals can be incredibly helpful in financial planning. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. When setting your financial goals, make them as detailed and realistic as possible. For example, instead of saying, “I want to save money,” a SMART goal would be, “I will save $10,000 for an emergency fund by setting aside $800 from each paycheck for the next 12 months.”Breaking down your goals into smaller, actionable steps can make them feel more manageable. Review your progress regularly, perhaps once a month or every quarter, to see if you’re on track. Adjust your plan as needed, but remain committed to the goal.SMART financial goals not only give you direction but also boost your motivation as you see tangible progress. By setting achievable objectives, you’re more likely to maintain positive financial habits throughout the year.
- Create a Plan to Pay Back Your Student Loans
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Pave A Prosperous Future this Financial Wellness Month
Financial wellness is an ongoing journey, and January offers a fresh opportunity to set meaningful financial goals for the year ahead.
Setting financial goals is about more than just saving money; it’s about creating a lifestyle that aligns with your values, ambitions, and dreams.
Remember, achieving financial wellness is not an overnight accomplishment. It’s about taking consistent, intentional steps toward a more secure and prosperous future. Embrace the process, celebrate small victories, and stay focused on the bigger picture.
Are you ready to make 2025 your year of financial success? Start by setting clear, achievable goals and acting today. Visit David Lerner Associates to learn more about financial planning, investment opportunities, and personalized strategies for building a secure financial future. Let’s work together to make this year your most financially rewarding one yet!
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.