Personal Finance

Top 50 Financial Hacks for Your 2025 New Year’s Resolutions  

The song “Auld Lang Syne” is derived from a famous Scot’s poem played at the start of every New Year. The title may be translated into English as “for the sake of old times.” While old times and good friends should not be forgotten, neither should your financial resolutions.

When hearing this song at the stroke of midnight, many of us reflect on our job, life, health, money, retirement, family, and relationships. The urgency of the clock counting down and the calendar turning over often inspires us to tackle changes we’ve delayed. With the challenges of today’s economy and market uncertainties, it’s an ideal time to make financial changes that can positively impact your future.

Items topping many New Year’s resolution lists typically include eliminating bad habits and starting new endeavors. For example, common examples include losing weight, decluttering, and improving health. However, financial “to-dos” rarely make the cut despite their importance. A New Year’s Resolutions Study from Allianz found that only 18% of Americans include financial planning as a resolution. Achieving financial organization requires time and dedication but pays off immensely in the long run.

Jon here. After years of post-pandemic economic uncertainty and transformational change, rethinking our approach to money, work, and retirement has never been more critical. Whether embracing hybrid work models or navigating the gig economy, staying ahead requires fresh perspectives and proactive planning.

As you write down your top resolutions for 2025, consider making your goals SMART: Specific, Measurable, Achievable, Relevant, and Time-based. Defining these parameters helps ensure your objectives are attainable. Here are our top 50 financial hacks for 2025:

Top Financial Hacks and Strategies

1. Budget in Hours: Think about viewing larger purchases in terms of hours worked, not dollars spent. For instance, if you earn $50/hour, a $10,000 purchase for your pre-owned Rolex equals 200 work hours. This may help you to retrain your brain to reimagine emotional or impulse spending habits into logical purchases when you can afford to reward yourself.
2. 50/30/20 Budget Rule: The super-simple 50-30-20 budgeting rule involves splitting your after-tax income into three categories of spending: 50% goes to needs, 30% goes to wants, and 20% goes to savings. We utilize this concept in every client meeting to help ensure our clients’ brains and paychecks are on track with every dollar earned.
3. Net Worth Formula: Use the “Millionaire Next Door” formula to gauge how your financial health stacks up: (Age × Pretax Annual Income) ÷ 10. This straightforward calculation offers a benchmark to measure your net worth relative to your age and earnings. While it’s not a perfect measure, it can help identify whether you’re on track, exceeding expectations, or need to refocus on saving and investing to build wealth.
4. Target Your Retirement Savings Milestones: Fidelity recommends aiming for specific savings benchmarks to help you stay on track for retirement: 1x your salary by age 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. These guidelines are a useful starting point, but your personal savings goals may vary depending on factors like your planned retirement age, expected Social Security benefits, and the lifestyle you envision in retirement. Regularly reassess these milestones to ensure they align with your progress and evolving financial needs.
5. Audit Recurring Bills: Take stock of your recurring expenses, such as utilities, subscriptions, and memberships. Perform an annual “subscription audit” to identify and cancel services you no longer use, like forgotten streaming platforms or apps. This practice can free up hundreds, if not thousands, of dollars each year.
6. Track Financial Goals: Utilize goal-setting applications or maintain a dedicated journal to monitor your progress toward financial resolutions. Clearly defining and regularly tracking objectives—such as saving for retirement can significantly enhance your financial discipline and success.
7. Track Finances with Apps: Track your household net worth, investments and cash flow autonomously with a financial app. We provide our clients with an e Money client website portal to organize and track their financial life in one place with daily feeds and updates.  
8. Eliminate Debt: Minimize debt and reduce interest costs by making extra payments on mortgages or car loans and paying off high-interest credit cards or refinancing into lower rate options if possible. This could help to shave off thousands of dollars of compounding interest over many years.
9. Maintain Cash Reserves: Maintain 12-24 months of cash reserves for emergencies. This helps avoid tapping 401(k) loans or credit cards during financial crises. Avoid borrowing against your 401(K), home or raking up debt on high-interest rate credit cards if an emergency or job loss transpires.
10. Monitor Your Credit Score: Review your credit report annually through Equifax, Experian, and TransUnion to stay informed about your financial health and catch any signs of fraud. Take proactive steps to improve your score over time for better borrowing opportunities.
11. Freeze Your Credit: Safeguard yourself against identity theft by freezing your credit with all three major credit bureaus. In an era of increased phishing attempts, data breaches, and online scams, this proactive measure can serve as a critical line of defense, preventing criminals from opening accounts in your name. Major companies have been data-hacked from Target, Face Book, Yahoo and AT&T to even the IRS.
12. Optimize Paycheck Withholding: Adjust your tax withholding to avoid overpaying and receiving a large refund. A big refund is essentially an interest-free loan to Uncle Sam that many people squander once it posts to their bank account. Instead, use that money throughout the year to invest, save, or pay off debts.
13. Annual Tax Review: Partner with your CPA or tax professional to review tax strategies for the coming year and optimize savings and deduction options from your employer, small business, home and other deductions and savings options.
14. Utilize Windfalls Wisely: Use inheritances, bonuses, or refunds wisely by paying down debt, saving, or investing while accounting for any capital gains or income taxes owed.
15. Automate Your Home: Save energy and money with smart home tech like Wi-Fi thermostats and sprinkler systems.
16. Energy-Efficient Upgrades: Explore tax credits for solar panels, geothermal systems, or impact windows to enhance home efficiency.
17. Estimate Your Retirement Income Goal: Use the “4% Rule” or “Multiply by 25” formula to calculate your target retirement income goal from your savings. For instance, if you aim for $40,000 in annual retirement income, you’ll need a cool $1 million saved ($40,000 ÷ 0.04 or $40,000 × 25). Make sure to adjust your income goal for inflation over time and to account for income taxes from “before tax” retirement accounts.
18. Stick to the 4% Retirement Income Withdrawal Rule: Plan to withdraw no more than 4% of your portfolio annually in retirement, adjusting for inflation as needed. This means every $1 million in savings could provide approximately $40,000 per year. Be sure to factor in taxes on withdrawals from pre-tax retirement accounts.
19. Automate Your Retirement Savings: Turn your savings into a “set it and forget it” system. Schedule automatic transfers to your savings or investment accounts right after payday. It’s like paying your future self-first—and ensures you’re building wealth effortlessly without relying on willpower. It’s important to prepare for longevity with many people experiencing a retirement longer than their working years. In the end you can’t put your retirement on a credit card.
20. Maximize Tax-Advantaged Accounts: Contribute to 401(k)s, IRAs, HSAs, and 529 plans to optimize tax efficiency where applicable. If you own a small business consider utilizing an IRA or non-IRA based retirement plan for yourself and for your employees.
21. Plan for Social Security: Consider delaying Social Security enrollment to maximize benefits unless specific strategies require early access.
22. Keep Estate Plans Updated: Ensure your estate plans, wills, and trusts align with your financial goals and family needs and hold in a safe place. Make sure those that you assign as your estate executor, agents, guardians and trustees know who they are and where to locate your legal documents along with your attorney’s name and firm.
23. Review Beneficiaries: Periodically review beneficiaries on all brokerage, insurance and retirement accounts, as designations override wills.
24. Plan Charitable Giving: Deduct charitable contributions strategically to reduce taxable income while supporting causes you value.
25. Consider Life Insurance Needs: Maintain coverage of at least 10x your gross income with a term that matches your major financial obligations.
26. Plan for Long-Term Care: Explore long-term care insurance options to plan for potential healthcare needs in retirement that could help to protect spending down a good portion of your nest- egg in retirement in case you become temporarily or permanently incapacitated.
27. Track Medical Expenses: Deduct medical costs exceeding 7.5% of adjusted gross income if you itemize.
28. Leverage Small Business Tax Deductions: Utilize deductions like the Qualified Business Income Deduction if eligible to optimize tax savings.
29. Stay Rational When Investing: Avoid emotional investment decisions and market timing. For example, fear and greed often lead to underperformance. Our client meetings involve discussions on behavioral finance and risk tolerance underlying drivers and factors for success over time for long term investors.   
30. Perform Portfolio Audits Quarterly: Review your investment portfolio for strategy alignment, expense optimization, and performance. Investing and portfolio management should not be a “set-it-and-forget-it” approach.
31. Avoid Over-Diversification: Focus on meaningful diversification rather than spreading investments too thin across multiple assets or products. Investing and portfolio design can be simple yet complex at the same time. Make sure you understand each investment down to the paper clips.
32. Research Investment Options Thoroughly: Avoid chasing performance or popular fads. For example, only invest in assets and products you fully understand. Take caution on products being pitched at steak -dinners.
33. Diversify Wisely: Limit exposure to any single investment or asset to 10% of your liquid portfolio. Make sure you understand what you are investing in up front, especially if the asset or product is a significant portion of your liquid net worth. This could include your company stock, cryptocurrency, real estate or even art, fine jewelry or classic cars.
34. Consider Structured Notes: Structured notes offer a blend of downside protection and growth potential, making them an attractive addition to traditional balanced portfolios. These products can help shield against market losses up to a preset limit while providing returns linked to equity indices or other assets.  
35. Explore Passive Income Opportunities: Build streams of passive income through rental properties, dividends, or REITs.
36. Rebalance Your Portfolio Regularly: Ensure your investment mix aligns with your risk tolerance and long-term goals. Market fluctuations can shift your asset allocation over time, so rebalancing annually or semi-annually helps maintain your intended strategy and manage risk effectively.
37. Maximize Roth Opportunities: Take advantage of Roth IRA or Roth 401(k) contributions, where qualified withdrawals are tax-free. Consider converting traditional IRA funds to a Roth in low-income years to lock in tax benefits for future growth.
38. Set Financial Milestones: Break larger financial goals into smaller, manageable milestones. For instance, if you aim to save $500,000 into your employer retirement plan over a set number of years, set interim targets of $20,000 increments and reward yourself modestly when each milestone is achieved to maintain motivation.
39. Start a Side Hustle: Explore side income opportunities to bolster savings and diversify income streams before and through your retirement. Many seniors enjoy remaining active through a multi-decade retirement by developing a side hustle that can also ultimately bring in some extra cash.
40. Invest in Self-Financial Education: Dedicate an hour monthly to reading a personal finance and investment book, blog, or podcast to empower yourself with knowledge.

Fresh Strategies for 2025

41. 30-Day Financial Challenge: Each day, tackle one small financial task, such as canceling an unused subscription or automating a bill payment.

42. Crowdfund Smart: Contribute small amounts to diversified equity crowdfunding platforms that pool investments into startups or small businesses, offering potentially higher returns while spreading risk across multiple ventures.

43. Fractional Real Estate Investing: Invest in fractional shares of commercial or residential real estate projects through platforms that allow partial ownership, providing passive income, potential appreciation, and enhanced portfolio diversification without the need for property management.

44. Gamify Savings Goals: Use apps that gamify savings, such as offering digital rewards, cashback, or visual progress tracking as you hit milestones, making the process more engaging and motivating to stick with long-term financial goals.

45. Utility Rate Optimization: Audit your utility bills and switch to providers or plans with better rates where possible.

46. Digital-Only Banks: Consider online banks with higher savings rates, lower fees, and robust app-based tools.

47. Tax-Loss Harvesting: Strategically sell underperforming investments to offset capital gains taxes.

48. Monitor Employee Benefits: Review and maximize workplace benefits, including FSAs, commuter perks, and wellness stipends.

49. Switch to Green Investments: Explore sustainable ETFs or funds to align your investments with personal values.

50. Skill Monetization: Turn hobbies or expertise into income streams through platforms like Fiverr or Etsy. Many people continue to work in retirement both to stay active as well as to sock away a bit more savings.

The Bottom Line

Financial resolutions can bring significant long-term rewards. Take time to unplug, reflect, and write down your 2025 financial goals. For example, the more you practice new habits, the more they become second nature—like brushing your teeth. For expert guidance, consider partnering with a CERTIFIED FINANCIAL PLANNER™ professional. There’s no better time than now to Plan Your Best Life®. We hope our Financial Hacks for 2025 Resolutions  brings both some interesting insights and motivation for your goals. 

For more information on our firm or to request a complementary investment and retirement check-up with Jon W. Ulin, CFP®, please call us at (561) 210-7887 or email jon.ulin@ulinwealth.com. 

Diversification does not ensure a profit or guarantee against loss.  You cannot invest directly in an index.

Note: This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Please consult your financial advisor, attorney, or tax professional regarding your specific situation.

You cannot invest directly in an index. Past performance is no guarantee of future returns. Diversification does not ensure a profit or guarantee against loss. All examples and charts shown are hypothetical used for illustrative purposes only and do not represent any actual investment. The information given herein is taken from sources that are believed to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as NewEdge Advisors, LLC does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors.