If you’re looking to check up on your finances in the new year, we're here to help. Think about any goals you had this past year and what you’d like to achieve this year. Then you can follow this checklist to get started.
1. Create a budget
Your budget is your financial foundation. Having a budget can help you prioritize your spending, track your progress and take control of your finances. If you currently have a budget, take a moment and to see how well you stuck with it last year. If you’re new to budgeting, the 50/30/20 plan is a great place to begin. This approach divides all your expenses into three categories: needs, wants, and savings or debt. If you're still unsure where to start, take our budgeting style quiz to find the method that may work best for you.
You also can leverage digital tools to help you track your spending. Ally Bank’s Spending Account offers spending buckets that help you sort your expenses.
Read more: 8 ways an Ally Bank Spending Account can simplify your finances.
2. Build an emergency fund and boost your savings
Whether it's a medical event, job loss or another unexpected bump in the road, an emergency fund can be a cushion during tough financial times.
Target savings goal
Next, work on maximizing your savings. Use this savings by age guide to find the right goal for how much you should save.
Account type
Then it will be time to figure out which account can help you reach your 2025 savings goal. You can look for a high-yield savings account like Ally Bank’s Savings Account or you can consider a Money Market Account. When choosing the account, compare annual percentage yield (APY) to get an idea of how much interest you can earn in a year and be sure to look for monthly maintenance fees and minimum deposit requirements.
Read more: Get a strong start to your saving resolutions with Ally Buckets and Boosters.
3. Check your credit score
If you're planning to buy a house or car in 2025, a strong credit score may help. In the new year, take a close look at your credit report. If you want to boost your score, there are some simple steps to improve it.
4. Manage your debt
Debt can feel overwhelming. It’s possible to prioritize your debt payments without hurting your other goals. Whether you opt for the snowball method or another approach, you can take steps to pay off credit cards, student loans and other types of debt over time.
Having a budget can help you prioritize your spending, track your progress and take control of your finances.
5. Review your investment portfolio
New year, new opportunities to invest in your financial future — literally. If you're new to the market, explore your choices to find what will work for you.
Take quiz: Which investment accounts are right for you?
If you are already investing, now can be a good time to check on your investment performance and asset allocation strategy. You can consider rebalancing your portfolio in the new year to be better in line with your plan and reflect the risk you’re currently willing to take.
6. Get ready for tax time
Start early to make tax season less stressful. Getting your documents together is one step to make filing your taxes easier. If you itemize deductions, you can take time now to find the information you’ll need, such as charitable contributions you made in 2024 and interest paid on your mortgage. Keep in mind, interest paid on students loans can be claimed without needing to itemize your deductions if you fall within the income guidelines set by the IRS.
7. Revisit your retirement plans
Take some time to check your accounts, map out your retirement goals and either open an account or see if there are opportunities to improve your current approach. Are you on track? Or maybe, after making your 2025 budget, you found extra money to contribute this year? If you're wondering how much you need to retire, here's a good place to learn more. Read more: 10 ways to start saving for retirement.
Make your financial resolutions count
The new year is the perfect time to challenge yourself to optimize your financial future. Push yourself to set new goals, review your risk tolerance and make it your best financial year yet.
