The start of a new year offers a fresh opportunity to reflect on where you've been and chart a course for where you want to go. Whether you're focused on building better habits, pursuing big dreams, or creating more balance in your life, having a clear plan makes all the difference. The same holds true for your finances! Breaking down your financial goals into manageable monthly tasks keeps you organized, helps you track progress, and creates momentum through small wins. Rather than tackle an entire year at once, let's focus on the first six months with practical, actionable steps you can add to your calendar right now.
January - Create or Review Your Financial Plan
The new year is ideal for reviewing your financial or retirement plan. Start by asking yourself: Have your goals changed since this time last year? Life brings transitions like approaching retirement, becoming empty nesters, welcoming a child or grandchild, or shifting career priorities. Each of these moments may reshape what you want from your money. Regular updates to your plan help ensure your saving and spending align with where you are today, not where you were a year ago.
If you already have a plan: Schedule time to review it with fresh eyes. Look at your assumptions about income, expenses, and major purchases. Verify that your emergency fund still covers three to six months of expenses. Confirm that your investment allocations still match your risk tolerance and time horizon.
If you don't have a plan yet: Now is the time to create one! For complex situations involving multiple accounts, estate planning considerations, or tax-efficient strategies, working with a CERTIFIED FINANCIAL PLANNER® professional can provide valuable guidance.
For those getting started on their own, begin with three fundamental questions:
- What are you saving for? (Retirement, a home, education, financial independence?)
- What's your timeline for each goal?
- How much do you need to set aside regularly to reach those targets?
From there, build a realistic budget that shows where your money flows each month. This awareness often reveals opportunities to redirect funds toward your priorities without dramatically changing your lifestyle.
February - Confirm Your Retirement Contributions Are Actually Invested
Here's a surprisingly common issue: Making contributions to your 401(k) or IRA doesn't automatically mean that money is invested. In some plans, contributions sit in cash or a money market settlement fund until you actively direct them into your chosen investments. This month, log into your retirement accounts and verify that your contributions are working for you, not sitting idle. Look at your transaction history and account holdings to ensure contributions are being allocated according to your investment strategy.
What to check:
- Does your account show recent contributions in your target funds, or are they accumulating as cash?
- If you have a 401(k), does your plan include automatic investment features? (Many modern plans do, but it's worth confirming.)
- Are you taking full advantage of any employer match?
Cash holdings in retirement accounts miss out on the long-term, tax-advantaged growth that makes these accounts so powerful. A quick review now can save you from discovering this issue years down the road.
March - Make Your 2025 IRA Contribution
April 15th marks the deadline for IRA contributions that count toward your 2025 tax year. This gives you a valuable window to reduce your 2025 taxable income or add to your Roth IRA for tax-free growth potential.
Traditional IRA contributions may be tax-deductible depending on your income and whether you're covered by a workplace retirement plan. This deduction reduces your 2025 tax bill.
Roth IRA contributions aren't deductible today, but qualified withdrawals in retirement are entirely tax-free, including all the growth. Whether a traditional or Roth contribution makes more sense depends on your current tax situation and future expectations.
For 2025, contribution limits are $7,000 (or $8,000 if you're 50 or older). If you're eligible to contribute, coordinating this decision with your tax professional ensures you're making the most strategic choice for your situation.
April - File Your Taxes
Tax season brings its own checklist, and staying organized helps avoid last-minute scrambling.
Key reminders:
- Watch for corrected 1099 forms from investment accounts or late-arriving tax documents
- If you made a tax-deductible IRA contribution for 2025, note that the official documentation (Form 5498) typically isn't issued until late May. But don't let that delay your filing. Just make sure your tax preparer knows about the contribution
- Remember to include charitable donations, especially if you made them late in 2025
- Consider whether you should file for an extension if you're still waiting on documents or need more time to prepare
Filing accurately and on time sets the stage for the rest of your financial year and helps you avoid penalties or interest charges.
May - Rebalance Your Portfolio and Reassess Your Risk Level
Markets don't move in straight lines, and over time, your portfolio's allocation can drift significantly from your original targets. A strong stock market, for example, might push your portfolio to become more equity-heavy than you intended, increasing your exposure to volatility.
This month, review your current asset allocation:
- What percentage of your portfolio is in stocks versus bonds?
- Does this still align with your risk tolerance and timeline?
- Have recent market movements changed your allocation significantly?
Rebalancing involves selling assets that have grown beyond their target percentage and buying those that have fallen below. This disciplined approach helps you "sell high and buy low" systematically, maintaining a risk level that lets you sleep well at night. Regular rebalancing is a key part of maintaining the risk-return profile that suits your unique circumstances.
June - Review Your Tax Withholding and Estimated Payments
Midyear offers the perfect checkpoint to ensure you're on track with your tax obligations. Waiting until December (or worse, until you file next April) can lead to unpleasant surprises.
Review your situation if you've experienced:
- A job change or significant income increase
- Marriage or divorce
- Starting or expanding a side business
- Large capital gains from selling investments or property
- Changes in deductions (new mortgage, charitable giving, etc.)
If you're having too little withheld, you might face underpayment penalties. If you're having too much withheld, you're essentially giving the IRS an interest-free loan when that money could be working for you throughout the year.
Making adjustments now, whether to your W-4 withholding or quarterly estimated payments, gives you six months to course-correct before year-end.
And now, celebrate! You've accomplished one of the toughest parts of setting big, ambitious goals - building and following a plan you can feel good about. These small, consistent actions each month will compound to help you create the financial future you desire.
Remember to check back in July for Part 2 of this series for help in setting financial to-dos for the second half of the year.
