Episode 105: Start the New Year Right

Transcript

Hello and welcome to the Balanced Wealth podcast. My name is Jarrett Topel.

As we kick off a new year, this is that brief window of time when motivation is high, calendars are still empty, and nobody has completely abandoned their resolutions, yet. Gyms are full, inboxes are relatively quiet, and for a short while, we all believe this might be the year we finally get our financial house in order.

So today, I want to walk through some practical ways to start the year off right financially. Nothing complicated. Nothing extreme. Just simple habits that actually matter, and actually work.

So first, start by taking stock of where you really are.

Before you set goals or make big plans, you need clarity on where your journey is beginning from. That means understanding what you earn, what you spend, and what you own. Incomes, expenses, and account balances. Super simple in theory, but, in practice, often avoided.

This doesn’t require spreadsheets worthy of a CFO or color-coded charts that only make sense to you. It just requires honesty and a bit of time, patience, and preparation. In reality, most financial stress doesn’t come from bad decisions. It comes from uncertainty and not wanting to look too closely at your true financial situation. Once you know where you stand, even if it’s not perfect, you can start making better and more educated choices, based on where you want to be.

Now that you have a clear idea of where you currently stand, the next step is to pick one or two priorities to focus on in the coming year, not ten.

Every January, people try to fix everything at once. Save more. Spend less. Invest better. Pay off debt. Max out retirement accounts. Buy a house. Travel more. Stress less.

That usually lasts until about mid-February, if we’re lucky.

Instead, choose one or two priorities that matter most to you this year. Maybe it is building an emergency fund. Maybe it is increasing retirement contributions. Maybe it is finally paying off a high-interest credit card that has been hanging around since you were a in college. Focus creates progress. Progress creates momentum. And finally, momentum creates long-term results

The third step in the process, is to automate the good habits and behavior you’re seeking.

Will power is unreliable. Especially after a long day, a long week, or a long January that somehow feels like it lasts three months.

If you want to save or invest more, automate it. Have money move right after your paycheck hits. If you want to pay down debt, automate payments above the minimum. When the right decisions happen automatically, you don’t have to continually rely on motivation or discipline. You set the system and then let the system do the work.

Fourth up on this list is to review and update the boring but really important stuff.

This is the part no one gets excited about, but it really matters. Review the beneficiaries on your retirement accounts and life insurance policies. Make sure your insurance coverage still makes sense. Check account registrations and titles. Read through your wills and trusts, if you have them, and confirm everything is still aligned with your current financial situation and goals.

These things don’t come up often in day-to day life, which is exactly why they so often get missed. A quick annual review can prevent major problems later. Down the line. Think of it as financial flossing. Not fun, but very effective when done regularly.

Fifth up on the list, plan for the expenses you already know are coming.

Most financial “emergencies” are actually fairly predictable. Property taxes. Insurance premiums. Vacations. Holiday spending. Car repairs. Medical costs. You name it.

If you know they’re coming, or at least likely coming, plan for them. Set aside money monthly so those expenses feel expected instead of stressful. The goal is fewer financial surprises and fewer moments where you say, “How did this sneak up on us again?”

Sixth, focus on consistency, not perfection. Don’t let great be the enemy of good. Small, steady progress matters more than getting everything exactly right.

You don’t need to optimize every dollar or perfectly time the market this year. You don’t need a complicated strategy or the investment idea your neighbor’s daughter just discovered. What matters most is doing the basics well and doing them consistently time and time again.

Saving a little more, spending a little more intentionally, and sticking to a plan beats almost any flashy strategy over time.

And, finally, remember that your financial plan is not a contract. It’s a guide.

Life changes. Income changes. Goals evolve. The best plans adapt. Use the new year as a reset point, not a finish line. Check in periodically, make adjustments, and keep moving forward.

The goal is not just more money. The goal is less stress, more clarity, and the freedom to use your resources in a way that supports the life you actually want to live.

Thank you for listening to today’s episode of Balanced Wealth. Wishing you all very happy, healthy, and prosperous new year.