Kickstart Your Year with a Financial Check-Up: 8 Steps to Prosperity

Last updated on
by Ella Karrels
in Post Catgories: Community

The new year is the perfect time to take charge of your finances and set yourself up for success. Just like a regular health check-up, a financial check-up ensures your money is working hard for you. At Prospera, we’re here to provide personal, tailored guidance to help you prosper. Follow these steps to start the year strong.

1. Review Your Budget
Take a fresh look at your budget. Are your income and expenses still aligned? Adjust for changes like new bills, pay increases, or financial goals. If you don’t have a budget yet, now is the perfect time to create one. We recommend the 50/30/20 rule:
50% for needs
30% for wants
20% for savings and debt repayment
 
2. Automate Your Finances
Simplify your financial life by automating key tasks:
Direct Deposit: Ensure your paycheck goes directly into your account to avoid delays.
Automatic Savings: Set up a recurring transfer to your savings account every payday.
Bill Payments: Automate payments for recurring bills like utilities, rent, or subscriptions to avoid late fees.


Automation helps you stay consistent and avoid the risk of missed payments or forgotten goals. For more information on how to set these tools up in our online banking system, please click here.
 
3. Set Financial Goals for the Year
Think about what you want to achieve financially this year. Maybe it’s paying off a credit card, building an emergency fund, or saving for a vacation. Write down your goals and break them into smaller, manageable steps.
 
4. Boost Your Emergency Fund
An emergency fund is your safety net for unexpected expenses, like car repairs or medical bills. Aim to save at least 3–6 months’ worth of expenses. If you’re just starting, set a smaller target, like $1,000, and build from there.
 
5. Plan For Taxes
Tax season can be stressful, but early preparation makes it much easier. Here are some steps to get ahead:
Organize Documents: Gather your W-2s, 1099s, and receipts for deductions or credits.
Adjust Withholding: Review your paycheck to ensure the right amount is being withheld. Use the IRS’s withholding calculator if needed.
Maximize Deductions: Check if you qualify for tax-saving opportunities like retirement contributions, education expenses, or home office deductions.
Consult a Professional: If your taxes are complex, consider working with a tax professional for personalized advice.


Planning ahead can help you avoid surprises and even increase your refund.
 
6. Evaluate Your Debt
List all your debts, including credit cards, loans, and mortgages. Note the balances, interest rates, and minimum payments. Consider strategies like the debt snowball method (pay off smallest debts first) or the debt avalanche method (tackle high-interest debts first).
 
7. Evaluate Savings and Investments
Take a close look at your savings and investment accounts to ensure they align with your financial goals:
Savings Accounts: Confirm that you’re earning competitive interest rates. Consider opening a high-yield savings account if you haven’t already.
Retirement Accounts: Check your contributions to ensure you’re maximizing any employer matches and staying on track for long-term goals.
Investment Portfolio: Review your asset allocation to ensure it matches your risk tolerance and goals. Adjust as needed, especially if market changes have shifted your portfolio’s balance.

Regularly evaluating your savings and investments ensures your money is working efficiently toward your future.

8. Check Your Credit Report
Your credit score is a key part of your financial health. Look for any errors or unfamiliar accounts that could signal identity theft. If you find inaccuracies, report them immediately.
 
A financial check-up at the start of the year sets the tone for the months ahead. With small, intentional steps, you can make 2025 a year of financial prosperity. Ready to get started? Contact us today for personal, tailored guidance to help you achieve your goals.

Visit our website to schedule an appointment to speak with a Prospera Financial Service Representative. Together, let’s make this your most prosperous year yet!