Three Ways to Get Your Finances in Better Shape

As we look to the rest of the year ahead, it’s a great time to revisit your finances and position yourself to make the most of your workplace benefits and broader financial life. We all know money can be a source of stress — especially after holidays — but your finances can also become a source of empowerment by taking thoughtful steps today to build for the future you want.

First, consider the goals you want to prioritize this year. According to the CFP Board’s Debt and New Year’s Resolutions Report, the top financial goals of Americans in 2025 are to reduce debt (42%), save for a major purchase such as a car, home or vacation (21%) and work toward long-term goals such as retirement planning (14%), building an emergency fund (11%) and developing or updating a financial plan (7%).

Prioritizing your financial well-being can set you up for financial success in the long run, but like any new habit, it will take time and practice. So, here are three ways to help yourself make the most of your finances in 2025 — and, in turn, help you move toward a more secure financial future.

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1. Holistically review the year ahead

Between gifts, celebrations and travel, it can feel difficult to get back on track financially after the holidays. If you overspent, don’t be too hard on yourself. Take a deep breath and move forward. As a first step, review any holiday spending, gifts and bonuses, as well as income sources, debt payments, credit cards and bills.

If you aren’t sure how to track your monthly income and expenses, consider using online tools such as debt calculators, retirement calculators and budgeting apps. You likely have access to these tools through your workplace. If not, you may also be able to create a budget through your credit card app.

Next, separate fixed and variable expenses. Think about crucial payments like housing and groceries vs nice-to-haves, such as taking a vacation. One easy method is the 50-30-20 budgeting rule: 50% of your budget would cover needs, 30% wants, and 20% savings and investments. Break it down by month, paycheck, or any way that’s compatible with your lifestyle.

Assess what your long-term financial goals are and create a timeline of when you’d like to achieve them. For example, are you planning to buy a home? Is your family complete, or do you anticipate having more kids? Are you setting aside money for college? What age would you ideally like to retire?

No matter how distant your long-term goals seem, it’s crucial to invest in your financial future at every stage of life. The longer you invest, the more you’ll allow your returns to compound — and potentially build in your nest egg by the time you retire. According to our latest Wealth Management Pulse Survey, most people are primarily saving in the long term for retirement (71%), an unknown emergency (53%) and simply because it’s the right thing to do (45%).

2. Take advantage of employer benefits, including educational resources

The workplace is an accessible way to invest in your financial future: According to our State of the Workplace Financial Benefits Study, most employees (89%) consider workplace financial benefits essential in meeting long-term financial goals. Take the time to understand any workplace benefits that are available to you — including health insurance, retirement benefits such as an employer 401(k) match, life insurance, disability insurance and more.

Assess your current financial status, including any wiggle room to allocate paycheck deductions and savings toward different benefits. For example, if your company offers a retirement benefit such as a 401(k), enroll — and make sure to max out any available employer match, if possible. If you’re planning to pay for a college education, take advantage of resources such as tuition reimbursement or workplace 529 programs. From there, you’ll be better able to identify areas where you can apply workplace benefits more effectively.

Your workplace may also offer additional benefits, such as discount programs, an emergency savings account match or equity compensation, which can potentially help you cut costs to free up your budget and build savings or investments over time.

Also, use any educational resources that your employer provides so you can better understand how your workplace benefits can help you address various financial challenges. Many companies offer webinars, events and on-demand content as a part of their benefits throughout the year. Even if you’re a veteran employee who has been around for a while, it’s usually worthwhile to participate so you don’t miss out on any new opportunities, updates or helpful information.

3. Prepare for the future and the unexpected

Keep in mind that life is unpredictable; one of the easiest ways to prepare for whatever life throws your way is to set money aside for emergencies. If you don’t have an emergency fund already, consider setting aside even $10 a month to start building in case of a rainy day. An emergency fund can help keep you financially afloat in unforeseen life circumstances, such as a change in your family’s employment situation or a medical emergency.

A good baseline is to set aside three to six months’ worth of living expenses in a separate, easily accessible account — such as a savings account, money market account or CD account. But your lifestyle can change over time, so if you have an emergency fund make sure it’s still adequate for your current needs. Ask your employer if they offer an emergency savings account match or any additional savings, budgeting or financial planning support.

If you aren’t sure where to start, talk to your employer: Our research shows nearly nine in 10 HR leaders offer financial wellness programs to help counterbalance work-life stressors. Your employer may be able to help answer questions, provide information to help you take advantage of your workplace benefits and even direct you toward additional resources to help you navigate your financial life. Additionally, you may have access to a financial coach or advisor through your employer’s financial wellness or retirement program.

Revisiting your finances near the start of a new year may be overwhelming, and new goals work only if you stick to them, but you won’t regret investing in your financial future.

This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

This material may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperlinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shall be at your own risk and we shall have no liability arising out of, or in connection with, any such referenced website. CRC# 4169466 1/2025

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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