Personal Financeinsta_photos / Shutterstock.comMaurie BackmanThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receivecompensation for actions taken through them. The start of a new year is a good time to do a financial checkup. And that holds true no matter what stage of life you’re in. Now that we’re into January, here are some key financial moves to make.Key Points from 24/7 Wall St.The start of a new calendar year is a good time to review your finances.
Make sure you’re set for emergencies and on track for retirement.
Create a debt payoff plan and make sure your portfolio is property balanced.
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1. Assess (and boost) your emergency fundWill the economy take a dive in 2025? Nobody knows. But the reality is that even in a great economy, no one is immune to financial upheaval.You could lose your job as a result of downsizing at your firm, or end up with a busted roof or a sick cat whose vet bills creep upward into the thousands. So it’s important to have solid cash reserves on hand at all times.Do an assessment of your emergency fund to see how many months of essential bills you can cover. If it’s not at least three, ramp up. And if you’re self-employed or in an industry that’s seeing its share of shakeups, you may want to aim for a six- to nine-month emergency fund for solid protection.Set up an automatic contribution to your savings so more money lands there each month. And while you’re at it, shop around for a great high-yield savings account to make sure you’re earning a nice return on your money.2. Work your way out of debtStarting the year off with expensive credit card debt isn’t great. The same holds true if you’ve got a nagging personal loan balance you want to shed, or a car loan with an exorbitant interest rate attached to it.Now’s a good time to examine your debt load and figure out a payoff plan. That could mean boosting your income with a side hustle or scaling back your spending to free up cash.And also, figure out your order of operations. A credit card balance with a 20% APR is something you should aim to tackle before working on a personal loan charging you 8%.3. Send money (or more money) into a retirement planIf you haven’t started funding an IRA or 401(k), or your contributions have been minimal to date, then now’s a good time to get on a better path. If your salary recently went up but you’re not yet used to your larger paycheck, send that extra money into whatever retirement account you’re saving in. That way, you won’t miss the money.While you’re at it, make sure your retirement plan is meeting your needs. If you’ve been pumping money into your employer’s 401(k) but hate the investment choices, it’s a good time to look at IRAs. And if you’ve been sticking to a traditional retirement plan for the up-front tax bre
