Let's face it: money isn't the problem. Finances, on the other hand, can be tricky. We all get the same 24 hours a day, and most of the time, we work during that time to earn money. That money then goes to support our lifestyle.
My husband firmly believes that you can always make more money, but if your finances are in shambles, more money might not be the answer. Making the distinction between money and finances can be the first big step in setting yourself up for financial success in the new year.
Financial literacy doesn't happen by chance, but there are great ways to get started as 2025 approaches. To help you out, we've curated some of our favorites.
1. Free File

No one really enjoys filing their taxes. However, there are ways to cut back on the headache. First, see if you qualify to free-file your taxes with the IRS (Internal Revenue Service).
If you do qualify, ensure you have all your income sources, W-2s, 1099-NEC forms, and any other income documentation handy. Also, be aware that some tax filing companies do not offer a free-file choice for anyone who is self-employed, so check your tax preparer's site carefully to ensure you are getting the services you need at the price you expect.
2. Savings Resolution
Okay, New Year's Resolutions don't hold long after the first or second week of January. But what if you made a resolution to save money and then actually did it?
Saving money doesn't have to be complicated. A few dollars here and there can add up to major savings. Trust me when I tell you that the more you do it, the more you're going to want to do it.
3. Overdraft Fees
These nasty little devils are the bane of every checking account holder on earth. They can sneak up on you when you least expect it, especially if finances are challenging for you. Paying out for useless fees, like overdrawing your checking account, only steals more wealth from your pocket.
When I was first married, I made two $10 mistakes in our checkbook and overdrew our checking account by $70. Thankfully, the federal Consumer Financial Protection Bureau issued a final rule that will cut the average overdraft fee of $35 per transaction down to just $5, alleviating the financial stress that overdraft fees create for nearly 23 million households. Hold onto your hats, though, as the rule has to settle in Congress before it becomes official.
4. Budgetary Decluttering
Working with a budget can take a lot of work, especially if you're new to the idea. Being able to approach your finances with a big red pen in hand is the first step to getting your money under control.
Go through your spending and income with a fine-tooth comb, find places where you're spending too much (or not enough), and find ways to cut those expenses. Then get real about how much money you're bringing in and how extravagant your lifestyle is. Most wealthy people live modest to frugal lifestyles by choice because they never want to live outside what their income can support, and most of their money goes for retirement.
5. Stay Organized
It is hard to do anything well if you're unorganized. Finances can suffer greatly if everything is a jumbled mess. If you're looking to improve your financial outlook for 2025, one of the first steps you'll want to make is to get organized.
Be honest with yourself about your spending, your savings, charity giving, and any other categories that you allocate funds to. Knowing where your money goes is half the battle in learning to handle your financial goals better.
6. Prepare a Will
One of the easiest financial steps you can take is to create a last will. These documents ensure that your last wishes are known and taken care of. You can contact a lawyer in your area who handles wills to help you secure where you want your assets allocated.
By doing this, you'll save your loved ones undue stress upon your death and can rest assured that everyone knows, in advance, what to expect should you die unexpectedly. No one likes to talk about death, but it's a conversation that should take place sooner rather than later.
7. Invest in Yourself
Investing can be scary to most people because we don't grow up learning about stocks, bonds, treasuries, gold, silver, commodities, and other investment tools. We might take an economics course in high school that touches on investing, but for most people, the topic dies by the wayside.
If you want to have any financial freedom, learning how to invest your money wisely and in a way that meets your values and goals is essential to reaching that financial liberty.
8. Read Up
One easy way to learn more about financial freedom and responsibility, budgets, investing, and other financial-centered topics is to read. Find a new book every other week or once a month and bone up on everything related to handling money wisely.
Reading is good for your brain and will definitely help you learn a thing or two about handling your money better. It might not be the magic bullet to all your problems and goals, but it certainly isn't going to hurt your chances.
9. Find a CFP
If you have access to a large amount of money and still struggle to manage it well, consider hiring a CFP (certified financial planner). These professionals can help you get organized, create a savings plan, take a hard look at your money, and plan for the future.
They are singularly one of the best investments you can make in your financial future, no matter how much money you have on hand. If money is an issue, find a CFP to help you straighten it all out.
10. Start Small
I mentioned earlier that saving money doesn't have to be a big overture. No one expects you to set aside a million dollars a year or have some astronomical retirement account overnight. The average person saves money little by little, and you can do the same thing.
Start with ten or twenty dollars every paycheck; at year's end, you can invest that money and watch it grow. Do this repeatedly; you'll have a nice little nest egg in twenty or thirty years. As your income grows, you can invest more and more toward that nest egg, and before you know it, you'll be a saving whiz.
11. Keep Beneficiaries Up to Date
One key area people often forget about is who the beneficiary is on their financial accounts. Items like pensions, 401(k) accounts, and IRAs all have named beneficiaries. If something happens to you and you don't update who you want your money to go to, you could end up with financial gains in the wrong hands.
Probate court is full of people making an issue over someone's assets because those people died and didn't update their beneficiaries. When this happens, families fight over who should get what. By updating your contacts in this area, you can save a lot of heartache and hard feelings.
12. Monetize Your Knowledge
Making money online is all about monetization. You have knowledge others could use, and monetizing that knowledge is one way to increase your income potential. Whether you create videos for TikTok or YouTube, build a following on Twitter or LinkedIn, or find another platform that wants to know what you know, you can start earning from day one.
Along with monetizing what you know, you can also build a brand around your knowledge and market that brand to build a following. The stronger your following, the more money you'll see roll into your bank account.
13. Passive Income
Passive income is lovely for two reasons. One, it can't be taxed by the IRS, and two, it happens even while you're sleeping. I'm not talking about all the income scams you'll see on the internet, though.
Passive income could be rental properties that you own and hire a manager to oversee. It could be publishing books on Amazon or other popular online publishers. If you have the ability to build passive income, don't overlook this area of income growth. It's a set-it-and-forget-it ticket to more financial freedom.
14. Favorable Corporate-Profit Trends
Unless a last-minute crash happens just before the New Year turns over, the stock market is likely to close out 2024 on a good note. The Standard and Poor's 500 expects to finish at a 7.4% gain, and tech stocks like Amazon, Apple, Meta, and Microsoft are soaring as the AI (artificial intelligence) influx continues.
If you've invested in stocks (especially in the tech sector), keep a close eye on the favorable corporate-profit trend. As tech stocks continue to shine, this trend should also see a nice rise.