5 Ways to Enhance Your Financial Wellness in 2025

As we begin a new year, it is natural to reflect on our financial journey and consider opportunities for enhancement. Here is a thoughtful approach to reviewing your financial wellness in 2025.

1. Understanding Your Financial Position

Start with a review of your current financial landscape. This includes examining your cash flow patterns and reserves. Understanding where you stand today can help provide context for any tactical adjustments that might benefit your long-term strategy.

One practical step you can take is to review the outflows on your bank statements for the last six months. This should help you understand your monthly expenses, including both essential costs and discretionary spending. With this clear picture of your monthly needs, you can make informed decisions about appropriate reserve levels.

2. Optimizing Within Your Existing Framework

Rather than making sweeping changes, focus on fine-tuning your established financial framework. Consider reviewing your automated savings structure, examining the efficiency of your cash management system, and ensuring your investment allocations remain aligned with your long-term goals. Small optimizations in these areas can compound over time to meaningful results.

3. Leveraging New Opportunities

Each year brings specific opportunities to enhance your financial position within your existing strategy. For 2025, this includes understanding how to best utilize updated retirement contribution limits and exploring whether new tax provisions might benefit your situation. Your financial plan is designed to adapt to these annual changes while maintaining its core long-term focus.

Working with both a CPA and financial advisor can help ensure you are maximizing these opportunities. By coordinating tax and investment strategies, we can help identify and implement approaches that align with both your tax situation and long-term financial goals.

4. The Power of Regular Review

Maintaining financial wellness involves consistent awareness and thoughtful adjustments when appropriate. Consider establishing a regular schedule to review your progress and discuss any needed tactical modifications with your advisor. This might include:

  • Regular review of cash flow and savings progress 
  • Consistent investment portfolio reviews 
  • Periodic assessment of insurance coverage and estate planning needs

5. Staying Aligned with Your Goals

Remember that financial wellness looks different for everyone. Understanding what matters most helps ensure your strategy remains aligned with your goals and values. Any adjustments should be made within the context of an established long-term plan, taking into account your unique circumstances and objectives.

Moving Forward

At CWM, we are here to help you evaluate opportunities for optimization while maintaining the integrity of your long-term strategy. Once a strategy has been implemented, small, thoughtful adjustments, rather than inconsistent major overhauls driven by emotional responses to market changes, often prove most beneficial in the long run.

If you would like to discuss specific aspects of your financial strategy or explore potential tactical adjustments for 2025, please don't hesitate to reach out. We are here to help you maintain and enhance your financial wellness journey.

 

This content is provided for educational purposes only, represents only a summary of topics discussed, does not constitute any personalized investment advice or recommendation, and represents only the views and opinions of the speakers which are subject to change without notice. Investing involves risk including the potential loss of all amounts invested.

This material prepared by Certus Wealth Management, LLC (“Certus Wealth”) is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Certus Wealth are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Certus Wealth, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Certus Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.