Three Keys to Setting Realistic Financial Goals for 2025

Research consistently tells us that New Year’s resolutions, in spite of their popularity as the chance for a fresh start, are overwhelmingly difficult to stick to. According to CBS News, more than half of Americans set goals for the new year, but only 25% remain committed after 30 days. Less than 10% actually accomplish what they set out to achieve. 

At Opal, we believe goal setting, for the new year or at any other time, requires more consideration and planning than most anticipate, including: 

• Setting SMART (specific, measurable, achievable, relevant, and timebound) goals 

• Putting a detailed plan in place with milestones along the way 

• Checking in with an accountability partner to help you stay on track 

When it comes to setting financial resolutions, we encourage clients to avoid committing to a full overhaul of their current lifestyle, spending, and saving habits. Instead, we recommend focusing on small but tangible steps that add up to a real difference:

1. Get Clear About Your Long-Term Vision

Before diving into investment strategies or tax planning, take a moment to think bigger. What does your ideal future look like? Maybe it’s retiring early to travel the world, helping your kids through college without debt, or buying that vacation home you’ve always dreamed about. 

Whatever your vision, write it down. Be specific. Instead of “save more for retirement,” try “retire at 60 with $8,000 monthly income.” These concrete goals become your North Star, helping you make better financial decisions along the way.  

It’s a good idea to break each big goal into yearly milestones. Want to buy a house in five years? Calculate how much you need to save each year to make that down payment happen. 

At Opal, we work closely with our clients to define and solidify the goals that will form the foundation of their comprehensive financial plan.

2. Protect What You’ve Built

Here’s a sobering reality check: only about one in three Americans have an estate plan. If you’ve thought about documenting your wishes for the future but haven’t done so yet, now is the time.  

Start with the basics: 

• Draft a will (or update your existing one) 

• Set up powers of attorney for healthcare and finances 

• Review your beneficiary designations (seriously – when was the last time you looked at these?) 

Think of estate planning as your family’s insurance policy. It’s not about how much you have – it’s about making sure what you do have goes where you want it to go.

3. Make Your Money Work for You

A few key retirement and tax planning adjustments can make a big difference on your journey toward achieving your financial goals. In particular:  

Taking full advantage of your retirement accounts. If you’re not maxing out your 401(k) match, you’re literally leaving free money on the table. For 2025, you can contribute up to $23,500 to your 401(k), plus an additional $7,500 if you’re over 50. 

Looking back at your latest tax return. It’s a goldmine of information about potential tax-saving opportunities. Could a Roth conversion make sense this year? Are there investment losses you could harvest to offset gains? These strategies might sound complex, but they’re powerful tools for building long-term wealth, and our team is here to help. 

Additional ways to put your money to work for you include: 

• Self-employed? Consider setting up a SEP IRA or Solo 401(k) for additional tax-advantaged savings 

• Look into Health Savings Accounts (HSAs) if you have a high-deductible health plan; they offer triple tax advantages (contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free) 

• Think about bunching charitable contributions in alternating years to maximize tax benefits if you itemize deductions 

Your Financial Journey Shouldn’t Be a Solo Endeavor 

Remember what we mentioned earlier about the impact of having an accountability partner on the likelihood that you’ll reach your goals? At Opal Wealth Advisors, we take that partnership seriously. We’re here not just to provide accountability, but to offer proactive guidance and work alongside you every step of the way. 

Ready to make 2025 the year you stick to your financial goals? Let’s talk! Set up some time with our team by clicking here.