A new year is the perfect time to take control of your money and set yourself up for success. Whether you want to save more, pay off debt, or feel more confident about your finances, having a budget is the first step. In this blog, we’ll show you how to create a budget that works by helping you understand your current financial situation, set realistic goals, and track your spending throughout the year. With these simple steps, you can make 2025 a year of financial growth and success. Let’s get started!

How to Navigate My Situation?

Financial check ups are extremely crucial because the lives around us are constantly changing. The first step in any financial check up is to review any life changes. Have you changed jobs, gotten married or divorced, welcomed a new family member, received an inheritance, bought a home, moved, or retired? Any of these life events can change your financial picture. 

Another step in navigating your finances is to know exactly where your money is going. How much money are you saving? What are you saving for? If you’re paying off current debts, how much of that is going to the principal versus how much is going toward interest? Knowing exactly where your money is going allows you to set more realistic goals.

How to Set Realistic Goals?

The first step in setting realistic goals is listing out and prioritizing your goals. For example, if your top three goals are to save for a car, pay off your credit card, follow a budget, rank them in order from first to last on your priority. Next, find ways for each goal to compliment one another. In the list above, by paying off your credit card you could roll your payment into your savings for a car. Additionally, if you stick to your budget, any excess money saved could also be rolled into buying a car.

The most important part of setting realistic goals is creating a financial plan to achieve those goals. If you know your income and expenses, knowing how much money you can allocate to different goals each month gives you clear direction on how to move forward. Then, use your goals and their timelines as drivers for your financial plan. If one of your goals is to buy a car, knowing when you want to buy the car and how much it will cost will form decisions for your financial plan.

How to Track Your Spending?

There are many workbooks or spreadsheets out there to help you track your spending. We have built one for you to use in 2025. Click here to download the 2025 Budget Book. This spreadsheet allows you to input your income and its sources along with your expenses and its categories. It will also allow you to track both your monthly and weekly spending.

Whether you use a spreadsheet, a checkbook, or an app, it is wise to track your spending to know where your money is going.

As we start 2025, remember that creating and sticking to a budget is a great way to reach your money goals. By knowing where you stand financially, setting goals you can achieve, and keeping track of what you spend, you can take charge of your money and use it wisely. Don’t forget to grab our free 2025 Budget Workbook to help you stay organized all year long. No matter where you are with your finances, we’re here to help. Let’s make 2025 a year of smart choices and big wins!