Here's your guide to reviewing 2024
<div class="user-question">Hi Frich! I want to prepare for the new year & set my goals, but first want to review how 2024 went. Do you have a checklist or any tips on how to properly review my year financially?</div>
Hello again, Frichies! It’s Daniel, founder and CEO of Fifr, your go-to financial wellness platform.
As the year comes to a close, it’s the perfect time to reflect on how you managed your finances in 2024 - and think about what you want to improve in 2025. Here are some key questions that can help you set the stage for a prosperous year ahead.
Q1: How Is My Monthly Budget Doing?
Your budget is the foundation of your financial health, so it’s worth checking in!
1️⃣ Do you have a clear picture of your spending? If not, don’t stress - you’re not alone! Simply reviewing your budget, even for a few minutes each month, can put you on the path to financial mastery. Whether you prefer using an app, a spreadsheet, or pen and paper, the key is consistency.
2️⃣ Is your money making you happy? Budgeting isn’t about guilt-tripping yourself into spending less - it’s about ensuring your spending aligns with what brings you joy and value. These are some great questions to ask yourself when reflecting on your budget:
- Does my spending align with my values and goals, or do I feel pressured to keep up with others?
- Can reallocating money from one area of my budget to another bring me more joy or value?
- Were there any financial decisions that I made in 2024 that prevented me from other actions later on?
- Am I still using the items I bought earlier in the year, or were they just impulse buys?
Taking time to answer these questions can give you clarity and set the stage for a more intentional 2025 budget!
<div class="frich-tip">Frich tip: If you don’t have a budget, consider starting one now! Tracking your spending for just one month can give you valuable insight into your habits. Here at Fifr we can help you set up a custom budget as a part of our standard free trial, but Rocket Money offers a great solution as well!</div>
Q2: How’s My Emergency Fund Doing?
Your emergency fund is your financial “safety net.” When life throws you a curveball - whether it’s a surprise medical bill or an unexpected job change - having some cash stashed can mean you don’t have to rely on expensive loans to get by. Ask yourself:
1️⃣ Do I have at least a few months’ worth of living expenses saved? If you’re just starting out, aiming for $1,000 as a starter fund is a great first step. Over time, aim to build up 3–6 months’ worth of expenses. But don’t go overboard—holding too much cash can mean missed opportunities for growth. Once you’ve hit your goal, consider investing any extra funds to make your money work harder for you.
2️⃣ Is my emergency fund earning me anything? Keeping some of your emergency fund in a high-yield savings account (HYSA) can help it grow while staying accessible. These accounts usually offer a higher interest rate than traditional savings accounts, letting your money work a little harder for you.
Even small, consistent savings can add up. Consider automating deposits into your emergency fund to build it up!
<div class="frich-tip">Frich tip: Check out our favorite HYSA options here!</div>
Q3: How Should I Be Handling Any Debts?
Debt can feel overwhelming, but having a solid repayment plan can make all the difference. Here are some things to consider:
1️⃣ Credit Card Debt: High-interest debt such as credit card debt can be a budget killer, so it can be a good idea to tackle it first. The "avalanche" method (paying off debts with the highest interest rates first) can save you the most money, while the "snowball" method (paying off the smallest balances first) can give you quick wins to stay motivated. Pick the strategy that works best for your goals and personality.
<div class="frich-tip">Frich tip: Don’t hesitate to call your credit card company and ask, “Can you lower my interest rate or offer a temporary payment reduction plan?” It’s often easier than you think and can make a big difference! </div>
2️⃣ Student Loans: Know your repayment options and keep an eye out for refinancing opportunities, especially if your income or credit score has improved since you took out the loan. Many refinancing options don’t charge transaction fees, so it’s worth exploring a lower interest rate or monthly payment to save money.
<div class="frich-tip">Frich tip: Take a look here to see if you qualify for any loan forgiveness options.</div>
Q4: How Are My Investments Doing?
Investing might feel intimidating, but with a strong foundation, it can be easier than you think. Let’s check in:
1️⃣ Have I started investing? If not, no worries—it’s never too late to begin!
2️⃣ Am I diversified? Putting all your eggs in one basket isn’t usually a great idea. Ask yourself the following questions to begin determining how well diversified you are:
- Are your investments spread across different asset classes, such as stocks and bonds, to balance your portfolio? Having ETFs (Exchange-Traded Funds) that track a broad market index can be a simple and effective starting point. They’re low-cost, diversified, and great for beginners (and great for experts too!).
- Do most of your investments come from a single industry or sector, such as technology or healthcare? Diversifying across multiple sectors can reduce risk.
<div class="frich-tip">Fundrise can help tailor your portfolio by including diversified investments such as pre-IPO tech companies and real estate projects!</div>
3️⃣ Did I contribute regularly? Setting up automatic investments can help you stay consistent and disciplined.
<div class="frich-tip">Frich tip: Investing isn’t about timing the market - it’s about time in the market. Starting early and investing a little bit each month no matter where the market is trending can allow compounding to work in your favor.</div>
Q5: Am I Making the Most of Employer Benefits & Tax-Advantaged Accounts?
Tax-advantaged accounts can be powerful tools to save money and build wealth. Here’s a quick guide to help you maximize their potential:
1️⃣ 401(k) / Employer Sponsored Plan: If your employer offers a match, aim to contribute enough to take full advantage of it - it’s essentially “free money”! You can think of it as an instant 100% return on your contribution. Just remember, this match typically resets every year, so don’t leave it on the table if you don’t have to!
2️⃣ Individual Retirement Account (IRA): If you’ve maxed out your 401(k) or don’t have access to an employer-sponsored plan, consider opening, funding, and investing through an IRA. It’s a great way to extend your tax benefits. Just keep an eye on income and contribution limits to ensure eligibility.
3️⃣ Health Savings Account (HSA): If you’re enrolled in a high-deductible health plan, using an HSA can be a game-changer. It offers triple tax benefits: pre-tax contributions, tax-free growth, and tax-free withdrawals for eligible medical expenses. Triple benefits like this are rare and incredibly valuable!
4️⃣ FSA: If you have a Flexible Spending Account (FSA), remember to use any remaining funds before the year ends—most FSAs have a “use it or lose it” policy.
<div class="frich-tip">Frich tip: Tax-advantaged accounts could be extremely helpful to lower your tax bill while supporting your future savings.</div>
Btw - here's how others are doing👀
What’s your proudest achievement in 2023?
🫂18% I was a good friend / family member
🤝17% I excelled professionally / academically
🌎65% I gained new experiences
We know this can seem like a lot, but even reflecting on these questions might put you in a stronger financial position for 2025. The good news? You don’t have to figure it out alone.
Fifr is here to help you navigate every aspect of your financial life. We offer a free 30-day trial so you can experience how valuable personalized financial guidance could be.
Happy reflecting—and here’s to a financially stronger 2025!
Daniel
CEO, Fifr
