Ditch the New Year’s Resolutions: Set Some Goals Instead

My fitness class always starts with a “question of the day” so we can get to know each other. Yesterday’s question was particularly well worded, so I am going to steal it for our purposes of this blog post. The question was: “What is a short-term goal (2-3 months) and a long-term goal (12 months) that you think you can realistically achieve?”

I appreciated that it was spontaneous, because your first reaction is often the truest. I also like that it was framed as a goal as opposed to the dreaded R-word, Resolution, that seems to suggest scarcity or the need to give something up.

We encourage you to try this financial goal setting exercise with us! Before you dive into some of the ideas below, you may want to pause and take a moment to jot down your own short- and long-term goals. See what comes to mind naturally.

Here are some ideas to get you started:

Short-term (2-3 month) goals:

• Boost Your Retirement Savings: Increase your 401(k) contributions in January to take advantage of the increased 2025 contribution limits: (see the new limits at https://www.coldstream.com/insights/new-gifting-and-contribution-limit-changes-for-2024/)
• Take a Credit Check Timeout: Freeze your credit to prevent unauthorized access — security breaches are only becoming more common. It sounds daunting but can be done in one cup of coffee and can prevent disaster down the road: https://www.coldstream.com/insights/protect-yourself-by-freezing-your-credit-heres-how/
• Build Financial Transparency with Your Partner: If you manage the household finances, make sure your significant other knows how to access important financial information (or least knows how to reach your various advisors).
• Use It or Lose It: If you made contributions in 2024 to an FSA for childcare or healthcare, make sure your FSA dollars are used up for 2024 — many employers allow claims to be filed up to March 15.

Long-term (12 month) goals:

• The Dream Vacation Deep Dive: Take that more expensive vacation that you’ve been dreaming of! Keep track of all the costs and determine: was that a good value and do you want to increase your vacation budget? If so, where will that money come from? (That’s helpful information for your advisor to know as we update your financial plan.)
• Maximize Your Happiness Factor: Identify one or two areas where ‘overspending’ may make sense for you this year. What brings you more joy and is worth a little extra expense? It could be adding to your favorite collection, concert or sporting event tickets, or dining out with family… On the flip side, if you feel you’re overspending in certain areas that didn’t bring fulfillment in 2024, is it possible to adjust your budget and cut back in those areas going forward?
• Emergency Fund Check-Up: Determine whether your emergency fund is over-funded or needs a boost.
• Diversify, Diversify, Diversify: If you have a concentrated stock position (a stock that is greater than 5% of your portfolio), consider gradually reducing it to diversify your holdings.
• Pre-Retirement Prep: If retirement is on the horizon, start exploring hobbies and activities you’d like to pursue in your anticipated free time.

Still not inspired? Maybe adopt one of our personal financial goals for 2025:

Elaina: Make sure my parents’ wills and beneficiaries are up to date, and work on simplifying their finances!

David: Review all my paid subscriptions and cancel the ones that are no longer adding value!

Rachel: Start to wean my 21-year-old off my “payroll” after she graduates!

Bonus points if you share your goals with your financial advisor so we can help you stay on track and accountable (a word almost as triggering as resolution!). Good luck!

*All of Coldstream’s staff shall attain the required licenses and designations necessary for his/her position. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP^® and Certified Financial Planner™ in the U.S. The CFA Institute owns the certification marks CFA^® and Chartered Financial Analyst^®.