Financial Moves to Make This Year

Every year, people set goals related to health, career, and personal growth. Another essential area that we should include in this is our finances.

Whether you want to achieve financial security, reduce stress, or prepare for the future, making smart financial decisions today can set you up for long-term success.

Including financial planning in your yearly goals helps you stay on track with your money, avoid unnecessary financial struggles, and build a solid foundation for the years to come.

To help with that, here are nine practical moves you can take to strengthen your financial position this year. Take action on the steps that are applicable to you and your unique situation.

1. Build (or Strengthen) Your Emergency Fund

An emergency fund is your financial safety net. It ensures that unexpected expenses, like medical emergencies, car repairs, or job loss, don’t throw you into debt or derail your long-term goals.

Aim to save at least three to six months’ worth of expenses in an easily accessible account. If you already have an emergency fund, consider increasing it to give yourself extra security in uncertain times.

2. Create a More Sustainable Budget

A well-planned budget or what I prefer to call a spending plan helps you control where your money goes instead of wondering where it went. Many people don’t track their spending, which leads to unnecessary expenses and financial strain.

Review your spending from the past few months, identify areas where you can cut back, and prioritize essentials. Focus on needs over wants, and ensure your budget supports your savings and investment goals.

3. Set Aside Money to Pay Off Any Debt

Debt can be a major roadblock to financial freedom. Whether it's credit card debt, student loans, or other obligations, making a clear plan to reduce what you owe will ease financial stress and free up more of your income for other goals.

Consider a strategy like the snowball method where you pay off smaller debts first to stay motivated and make steady progress.

4. Allocate Money for Savings and Investments

Saving and investing are key to growing your wealth over time. The earlier you start, the more you can benefit from compound interest, which allows your money to grow exponentially.

Set a percentage of your income to go into investment options that align with your goals, timeframe, and risk tolerance. Even small, consistent contributions can make a big difference over time.

5. Plan for Education, Health, and Financial Freedom

Your financial plan should support your long-term goals, including further education if you have children, medical expenses, and achieving financial independence.

Regardless of whether it’s setting up an education fund, getting health insurance, or planning early for major expenses, having a clear financial roadmap helps make sure you’re prepared for whatever life throws your way.

6. Start Planning for Retirement Early

Retirement might seem far away, but the sooner you start planning for it, the better. The key is to start early so your money has time to grow.

Consider contributing to retirement accounts, employer-sponsored plans, or other long-term investments. Calculate how much you’ll need to retire comfortably and adjust your savings plan accordingly.

7. Get a Life Insurance

If your family depends on your income, life insurance is essential. It ensures that your loved ones are financially secure if anything happens to you.

Explore different insurance options to find the right coverage. You can check out this previous article I wrote to know how to estimate your life insurance needs.

8. Review and Update Your Estate Plan

Estate planning isn’t just for the wealthy, it’s for anyone who wants to make sure their assets are distributed according to their wishes. Without a proper plan, your loved ones could face unnecessary legal complications.

Review your will, trusts, and beneficiaries to ensure everything is up to date. If you don’t have an estate plan yet, consult with a professional to put one in place.

9. Invest in Financial Education and Career Growth

One of the best investments you can make is in yourself. Improving your financial knowledge and career skills can lead to better decision-making and increased earning potential.

Read books, take courses, or attend financial seminars. Understanding how money works will help you manage your finances more effectively and create better opportunities for financial growth.

Financial success doesn’t happen by chance—it happens by choice. Taking control of your money and making intentional decisions will help you achieve your goals and secure your future.

Make it a habit to review your finances regularly, track your progress, and adjust your plan as needed. Small, consistent actions today will lead to big rewards in the future.

If you’re unsure where to start, seek professional advice or use financial planning tools to guide you. The most important thing is to take action now because the best time to plan for your financial future is today.