A new year is the perfect time to align your money with your goals.
The start of a new year naturally inspires fresh goals—healthier habits, organized homes, new adventures. But it’s also an ideal moment to step back and refresh your financial roadmap. Whether your focus is building savings, growing investments, or protecting your family, a simple check-in helps you move forward with confidence.
A financial refresh doesn’t need to be complicated. Small, intentional steps can set the stage for a stronger year ahead. Here are six steps to start the year on solid financial footing.
1. Review your financial goals
Your financial roadmap begins with your goals, which guide your savings, investing, and protection decisions. Those can shift as life changes. Maybe you welcomed a new grandchild, bought a home, or changed careers. Even everyday life changes, like higher expenses, caring for a loved one, or shifting priorities, can affect your plan.
Take a moment to reflect:
- What are my short-, mid-, and long-term financial goals?
- Have my income and/or expenses changed?
- Do my savings and investments still support what matters most to me now?
Quick Win: Write down your top three financial goals for the next 12 months and the next 5–10 years. Revisit this list at least once a year or whenever you experience a major life change.
2. Automate your savings and investments
Once you’ve defined your goals, turn them into habits. One of the easiest ways to stay on track is through automation so you’re “paying yourself first” without having to think about it.
You might:
- Set up weekly or monthly transfers to your savings account and/or investment account to normalize your savings strategy
- Increase your retirement contribution by 1–2%
- Use direct deposit to automatically divide your paycheck between spending and savings accounts
Even small, automatic increases can have a big impact over time. Automation takes willpower out of the equation and keeps your plan moving in the right direction.
3. Balance protection and growth with insurance
Your financial roadmap isn’t just about saving and investing— it’s also about protecting what you’ve built so far. Insurance plays a key role in helping you manage risk as part of a holistic financial plan.
Consider reviewing your coverage to make sure it still fits your needs:
- Life insurance: Does it match your current income, debt, or family responsibilities?
- Disability insurance: Would your income be protected if you couldn’t work for a period of time due to illness or injury?
- Long-term care coverage: As you plan for retirement, have you considered potential future healthcare and long-term care needs?
Insurance ensures a single unexpected event doesn’t undo years of progress. The goal isn’t necessarily more insurance—it’s the right insurance, coordinated with your savings and investment strategies.
Did you know? FCT Insurance can help you review existing coverage and explore options that complement your broader investment and retirement strategy.
4. Review your portfolio’s asset allocation
Markets change, and so does your life. Asset allocation—your mix of stocks, bonds, and cash—is one of the biggest factors in long-term investment performance. Over time, your investments can drift away from your original mix, even if you haven’t made any changes yourself. That’s where rebalancing comes in.
Ask yourself:
- Is my portfolio still aligned with my risk tolerance and time horizon?
- Am I taking on more risk than I’m comfortable with?
- Am I taking on enough risk to support my goals?
- When was the last time my portfolio was rebalanced?
A review of your asset allocation can help you confirm that your money is working for you in a way that matches your goals and comfort level.
Quick Win: Look at your most recent investment statement and note your current mix (for example, 60% stocks / 40% bonds). Compare it with the target mix you set when you started. If it’s significantly off, it may be time to discuss rebalancing with a professional.
5. Confirm beneficiaries and review your estate documents
Another key part of your wealth roadmap is making sure your money goes where you intend—easily and efficiently. Estate planning isn’t only for later in life, it’s an essential part of ensuring your wishes are carried out and your loved ones are protected.
Review these items at least once a year:
- Beneficiaries on accounts: Check retirement plans, life insurance policies, and other accounts to ensure your beneficiary designations are current. These designations can override what’s in your will, so it’s important they’re up to date.
- Estate planning documents: Make sure your will, trust (if applicable), powers of attorney, and healthcare directives reflect your current wishes and family situation. If you don’t have any of these documents, this may be the year to create them.
- Account titling: Verify how accounts are owned (individual, joint, trust-owned) and whether that still fits your needs.
Life events—such as marriage, divorce, a new child or grandchild, or the loss of a loved one—are all reasons to revisit your estate plan and beneficiary selections.
Quick Win: Spend five minutes logging into your retirement or insurance accounts to confirm your listed beneficiaries.
6. Schedule your annual financial review
Even the best roadmap needs regular recalibration. If you have a wealth advisor, schedule your annual check-in. If you currently do not utilize a wealth advisor, consider connecting with a professional who can help you build and maintain a long-term plan tailored to your goals.
During this review, consider:
- Updating your income and spending plan
- Checking investment performance and your overall asset mix
- Confirming beneficiaries and estate documents
- Reassessing insurance coverage and healthcare plans
This review gives you a clear snapshot of your finances so you can make informed decisions for the year ahead.
Ready to begin?
Whether you’re just getting started or refining a long-standing plan, now is a great time to refresh your finances. If you’re looking for guidance, you don’t have to navigate the process alone.
First Community Trust can partner with you to:
- Clarify your goals
- Build savings and investment strategies
- Integrate protection through insurance
- Review and adjust your plan over time
Together, we can help you create a roadmap that grows and adapts with you, because you deserve a plan that’s built to last. This year, take the next step toward a financial future that reflects your goals and values. Reach out to your First Community Trust Wealth Advisor today to schedule your review.