January is Financial Wellness Month

Your 2025 Financial Wellness Check-Up

Now that we’re already a couple of weeks into 2025, it’s a great time to take stock of your finances and ensure you’re on track to live your life of abundance. With a little planning and a few strategic adjustments, you can help position yourself to stay on track for the duration of the year.

While financial planning may not carry the same excitement as New Year’s resolutions focused on health and wellness, your financial health is deeply tied to your overall wellbeing – and January happens to be Financial Wellness Month. The good news about new year resolutions? You don’t need to make major changes all at once. By taking simple, manageable steps, you can confidently maintain or improve your financial health throughout 2025.

1. Evaluate Your Spending
Start the year by reviewing your spending—this simple act can bring clarity and focus to your finances. Assess your monthly income, fixed and variable expenses, and consider how inflation may have impacted your spending in recent months. This is the perfect time to realign your budget with your financial priorities for 2025.

2. Tackle Your Debt
Managing debt effectively is an essential part of financial health. If you’ve been diligently managing your debt, this could be a great time to take it a step further. Consider applying any extra income from a raise or bonus to high-interest debt to reduce your balances faster. Another strategy to explore is debt consolidation, which can simplify your finances by combining multiple loans into one with a potentially lower interest rate. A streamlined debt management plan can also reduce financial stress. Your Gilbert & Cook Advisor can guide you on the best strategies for your specific situation.

3. Revisit Your Asset Allocation
Asset allocation is key to ensuring your portfolio aligns with your evolving goals. As life stages shift, so should your investment strategy. If you're approaching retirement, you may want to adjust your portfolio to a more conservative mix. Alternatively, if recent market events have you feeling uncertain about your current allocation, it’s a great idea to visit with your advisor to discuss if any changes may be needed. A well-diversified portfolio helps you weather market fluctuations and stay focused on your long-term goals, so it’s important to revisit your allocation periodically.

4. Check Your Emergency Fund
A well-stocked emergency fund is your financial safety net. It's always a good idea to check whether your current fund is sufficient, especially given the unpredictable nature of the economy. A general rule is to have three to six months’ worth of living expenses set aside in a safe, liquid account. However, as life evolves, so too should your savings goals. Ensure that your emergency fund is still in line with your current financial situation and lifestyle. Conversely, It’s may be a good idea to review to make sure you’re not keeping too much in your emergency fund and if so, you could consider redistributing some of those funds towards your investments, paying down debt, or your non-financial goals.

5. Make Sure You’re on Track with Your Goals
It’s important to regularly assess whether you’re making progress toward your financial goals, especially long-term objectives like retirement. If recent market fluctuations have affected your progress, don’t worry—work with your Gilbert & Cook Advisor to recalibrate and get back on track. If you're meeting your goals, consider setting new ones. For example, if you were able to increase your retirement contributions last year, see if you can boost them again in 2025.

6. Update Your Estate and Insurance Plans
As you review your financial picture for 2025, don't forget to review your estate and insurance plans. If you haven’t already, creating or updating your estate plan ensures your assets will be distributed according to your wishes. This is also a great time to review your insurance policies (life, disability, long term care). Whether it's through your employer or an individual policy, make sure it reflects your current needs. Major life changes like marriage, the birth of a child, or changes in your income or debt can impact your insurance requirements. An annual review ensures your policy provides the right level of protection for you and your loved ones.

While it's easy to lose track of resolutions as the year progresses, staying focused on your financial health will help you navigate any challenges that may arise. By making intentional adjustments and working with your Advisor, you can stay on course to help reach your goals and build a secure financial future.