As we step into 2025, it’s a great time to reset, reflect, and make financial moves that will set the tone for the year ahead. Whether you’re looking to grow your savings, tackle debt, or invest- taking intentional action now can pay off in the long run. Here are some practical financial strategies to consider.

1. Review and Reset Your Budget

The start of the year is the perfect time to analyze your spending habits from last year and make adjustments. Look at your biggest expense categories and identify areas where you can cut back. Consider using budgeting apps or the classic 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

2. Boost Your Emergency Fund

Economic uncertainty can strike at any time, so ensuring you have a solid emergency fund is crucial. Aim to have at least three to six months’ worth of expenses saved in an easily accessible account. If you’re starting from scratch, begin by setting a small, achievable goal—like saving $500—and build from there.

3. Tackle High-Interest Debt

Credit card debt and other high-interest loans can drain your finances. Consider using the avalanche method (paying off the highest-interest debt first) or the snowball method (starting with the smallest balance to gain momentum). If your credit is strong, a balance transfer to a lower-interest card or a debt consolidation loan might be worth exploring.

4. Maximize Retirement Contributions

If your employer offers a 401(k) match, contribute enough to get the full benefit—it’s essentially free money. For individual retirement accounts (IRAs), review your contributions and consider increasing them if possible. With time on your side, compound growth can significantly boost your retirement savings.

5. Reevaluate Subscriptions and Expenses

Streaming services, gym memberships, and subscription boxes can add up quickly. Do an audit of your recurring expenses and cancel anything you’re not actively using. Redirect that money toward savings or investments instead.

6. Invest with a Purpose

If investing is part of your 2025 financial goals, make sure your portfolio aligns with your risk tolerance and long-term objectives. Diversification is key—consider a mix of stocks, bonds, and alternative investments. If you’re new to investing, start small with index funds or robo-advisors.

7. Set Clear Financial Goals

Define specific, measurable financial goals for the year. Whether it’s buying a home, starting a side hustle, or reaching a savings milestone, having clear objectives will keep you focused and motivated. Break them down into smaller steps to make them more manageable.

8. Keep Learning

Financial literacy is an ongoing journey. Read books, listen to podcasts (like the soon to be released Spinach and Ice Cream podcast!), and follow credible financial sources to stay informed. The more you know, the better equipped you’ll be to make smart financial decisions.

Final Thoughts

Small, consistent actions lead to big results over time. By making mindful financial decisions today, you can set yourself up for a brighter future. Start where you are, make incremental changes, and watch your financial health improve throughout the year.

Philip Lockwood | Founder + Managing Partner

Address: 1501 Ingersoll Ave. Suite 201  Des Moines, IA 50309 Phone: 515-274-8006

Email: Plockwood@parklandrep.com Website: Lockwood Financial Strategies Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC   Securities offered through Parkland Securities, LLC, member FINRA/SIPC.