It’s Not Too Late to Reset Your Financial Strategy for 2025

As we approach the end of Q1 2025, it's a great time to review and reset your financial strategy for the year. This year has already been full of excitement in the Greater New Orleans area, from a record snowstorm to hosting the Big Game and the bustling Carnival season. If you’re just getting started with your financial planning for 2025, you're not alone! It’s a good time to reflect, regroup, and reconcile your finances.

Reflecting on the past year, ask yourself: Are you happy with how you managed your finances in 2024? Could you have made different choices to improve your financial well-being? Your answers to these questions will help you plan for a financially successful 2025.

Why Budgeting is Key to Financial Well-being

I’m often asked why I stress budgeting so much, and the answer is simple: Creating a budget is essential, but the real challenge lies in sticking to it. If you want peace of mind and less financial stress, budgeting is a crucial step on your path to financial well-being. Budgeting isn’t about restricting yourself; it’s about prioritizing your spending.

The best way to avoid financial strain is to know where your money is going and plan ahead. If you need help, Fidelity Bank offers several tools to assist you in budgeting effectively. Check out our educational resources on budgeting here: Budgeting Tools and Resources.

Tips to Help You Reset Your Budget for 2025

Here are some of my favorite tips to help you get started with budgeting and resetting your finances for this year:

1. Know Your Actual Income

In my experience, many people aren’t sure of their actual take-home pay for the month or even the week. While payroll technology has improved, it’s easy to forget to check your income, especially if you're receiving direct deposits and no longer have physical pay stubs. If you’re like me, your payroll is likely direct deposited, and the information is available on your company's HR website. Take some time to log in and review your income. If you're unsure of your net income (after taxes and deductions), it’s easy to miscalculate your budget. Make it a habit to review at least three months of pay stubs to accurately plan your budget.

2. Understand Your Expenses

Many people don’t fully understand how much they spend on regular and irregular expenses. For example, I use my debit card for most of my purchases. It's my responsibility to use tools like the Fidelity Bank mobile app or online banking to track my expenses. I also prefer e-statements because they are securely stored online and easy to access. If you haven’t already, sign up for e-statements to help you stay organized.

Take some time to review the last three months of your bank statements and categorize your spending. Highlight your fixed expenses (mortgage, car payments, insurance) in one color and your variable expenses (groceries, dining out, entertainment) in another. Identifying these will give you a clearer picture of where you can cut back or make adjustments.

3. Keep Track of Due Dates

Knowing when bills are due is critical to maintaining a successful budget. To stay on top of payments, I recommend setting up auto payments. Fidelity Bank's bill pay service is a great tool for automating your payments and saving time. You can learn more about online bill pay options here: Bill Pay Services.

If you prefer to manage payments manually, consider using a large calendar or an online app to keep track of due dates. Make sure to plan ahead, especially if you’re paying by mail, to avoid late fees.

4. Be Aware of Mindless Spending

Mindless spending can quickly derail your budget. By reviewing your last three months of statements and highlighting purchases, you may discover patterns of spending you weren't aware of. Understanding these habits will help you take control of your finances. While a budget can’t always be 100% accurate, this process will help you make smarter financial choices.

5. Start Saving—Even a Little at a Time

A common excuse I hear is, “I don’t make enough money to save.” But the truth is, saving even a small amount regularly can make a significant impact over time. At Fidelity Bank, we have tools to help you start saving, even if it’s just a few dollars each week.

• Explore these courses to learn the basics of savings strategies: Savings Strategies.
• If you have a specific savings goal, use our savings goal calculator to help you plan: Savings Goal Calculator.
• It's impossible to predict emergencies like car repairs or job loss, but you can prepare for the unexpected by setting up an emergency fund. Learn more here: Planning for an Emergency.

Take Control of Your Financial Future in 2025

Let’s make 2025 the year you feel financially confident and in control. Take the time to reset, create a budget, and make intentional spending choices. If you need help, I'm here for you. Feel free to reach out with any questions or concerns by contacting me here: Javier's Contact Page.