January is the perfect time to make financial planning the foundation for achieving your New Year’s resolutions. Whether your dreams include improving physical fitness, embarking on that long-awaited vacation, or starting a new hobby, having your finances in order is the key to turning those aspirations into reality.

A new year offers a fresh start — a chance to reassess your financial health, set meaningful goals, and create a step-by-step plan to achieve them. With inflation affecting the cost of living and potential tax law changes creating new opportunities for savings, the new year is an ideal time to take control of your financial future. Smart financial planning empowers you to build resilience against economic uncertainties while keeping your resolutions on track. By starting today, you can create the stability and freedom you need to fill this year with progress and success.

Why financial planning matters

Many people delay financial planning because they feel overwhelmed or uncertain about where to start. However, taking a proactive approach to your finances can reduce anxiety and put you in control. When you set clear financial goals, establish a budget, and plan for unexpected expenses, you’re not just preparing for the year ahead — you’re giving yourself the tools to thrive.

It becomes easier to make decisions and navigate any challenges that come your way when you understand your financial situation. Planning ahead helps you feel more confident in your financial decisions, allowing you to live with less stress and uncertainty.

Top 5 ways to get your finances in shape for the new year

1. Set clear financial goals

The first step toward financial health is defining what success looks like for you. Take time this January to think about what you want to achieve in the year ahead. Setting specific, measurable goals makes it easier to track progress and stay motivated.

For example, instead of simply saying, “I want to save more,” set a concrete target: “I will save $200 each month toward an emergency fund.” Break larger goals into smaller, actionable steps. Consider setting a mix of short- and long-term goals so you can stay focused and motivated throughout the year.

Regular check-ins are essential to staying on track. Mark your calendar for quarterly reviews of your financial progress — these check-ins allow you to reassess your goals, adjust your strategies, and celebrate your wins. Use these sessions to evaluate your spending habits, monitor your savings, and ensure you’re making consistent progress. By committing to quarterly reviews, you’ll not only stay accountable but also give yourself the opportunity to course-correct if needed, making your financial intentions a reality by year’s end.

2. Calculate your net worth

Your net worth is the total value of your assets minus your liabilities. Knowing where you stand financially is essential for building a solid financial plan. Start by listing all your assets — such as cash, property, and investments — and subtracting your liabilities, including loans, credit card balances, and mortgages.

A clear picture of your net worth gives insight into areas of strength and areas that need improvement. If your liabilities outweigh your assets, consider steps to reduce debt or increase savings. On the other hand, if your assets are growing, you may have more flexibility in your financial goals.

3. Check your investments and retirement accounts¹

Reviewing your investments and retirement accounts is crucial to ensuring you’re on track for long-term financial success. If you’re contributing to a 401(k) or an IRA, take time to evaluate whether your investments align with your retirement goals. You may want to adjust your portfolio depending on your risk tolerance or life stage.

Additionally, consider increasing your contributions, especially if you’re not yet maxing out your retirement savings. Even small increases can have a big impact over time. If you’re uncertain about the best investment strategy, consult with a financial advisor to help align your plan with your goals for the new year.

4. Start or build your emergency savings fund

Unexpected expenses are a reality of life, and having an emergency fund can make all the difference in how you navigate financial setbacks. Aim to save three to six months’ worth of living expenses in an easily accessible account. If you don’t have an emergency fund yet, now is the perfect time to start. If you already have one, review your savings to ensure it’s sufficient.

One way to build your emergency fund is by automating monthly transfers to a savings account. Treat it like a bill that must be paid, and you’ll steadily build a financial cushion. The peace of mind that comes with knowing you’re prepared for the unexpected is invaluable.

5. Review your spending

A simple yet powerful way to improve your financial health is by analyzing where your money goes each month. Look at your spending patterns and identify areas where you can cut back. Are there subscriptions you’re not using? Do you tend to overspend on dining out or shopping?

By reviewing your spending, you can find opportunities to save. The goal isn’t to deprive yourself but to be more intentional with how you allocate your money. Tracking your spending helps you understand your financial habits and makes it easier to adjust them to meet your goals.

Financial planning is empowering — no matter where you start

Whether you’re just beginning to build your financial foundation or you’re looking to fine-tune an already solid plan, financial planning is an empowering process. The earlier you start, the more time you’ll have to make progress. Even if you’re starting from scratch, remember that financial health is about taking small, consistent steps in the right direction.

Consider the new year an opportunity to improve your financial habits and set yourself up for long-term success. Financial planning is not a one-time task; it’s an ongoing effort that can lead to a more stable, confident, and stress-free future.

Keep learning about managing your finances

Take the first step toward financial empowerment today. Follow Wintrust on social media for more tips on budgeting, saving, and investing throughout the year. If you’re ready for personalized guidance, find a local Wintrust Community Bank branch near you and schedule an appointment with a banker to discuss your financial goals for the new year.

The Wintrust Community Banks Mobile Banking App² is another great tool to simplify your financial planning. Use the Personal Finance Manager to:

• Get personal financial insights and reminders
• Create budgets and savings goals
• Build debt payoff plans
• Track your cash flow and spending trends

Questions about the app or our online financial tools? Visit our FAQ page or stop by your local branch.