Restructure Your Finances For 2025—Even In Uncertain Times

I know that 2025 is loud already, but let's focus on what we can control and how to handle what unfolds this year..

↓

Hey Hey, Funders,

We are so back. The first newsletter was anchoring on how you did with your accounts and accountability in 2024, and how we’re using those insights to implement your money better in 2025. By now, you’ve probably set some goals for the year. Maybe it’s to save more money, pay off debt, find your balance, or finally start investing.

But here’s the hard truth: Life—and the economy—can throw curveballs. Layoffs are still happening, inflation is making everyday costs rise, and unexpected expenses can pop up out of nowhere. So, how do you set yourself up for financial success in 2025, despite the unpredictability? I still want us to scroll through our money and life this year with not much doom, but if we are faced with it - knowing how to manage it. There’s no perfect season, but only the best response to life when it starts life-ing.

This newsletter is all about taking the insights from your 2024 "Money Wrapped" and building a solid, actionable plan for this year. Think of it as your personal financial roadmap to navigate anything the year might bring.

Let's keep the "how to money" in 2025 conversation going...

Step 1: Save With A Purpose

Already at the top of the year, I’m seeing headlines around not only layoffs but unprecedented things like earthquakes, wildfires, etc that can shift life in an instant. We hear a lot about emergency funds, but let’s break it down in a way that feels doable:

Start with 1 month of expenses: If saving 3–6 months feels overwhelming, focus on building up one month’s worth of essential expenses first. That’s your foundation.
Automate your savings: Set up automatic transfers to a High-Yield Savings Account (HYSA). It’s like paying yourself first, and your money earns more while sitting there. You know I’m a fan of Ally and Marcus.
Have a plan for emergencies: Saving is one thing, but knowing how to handle an emergency when it happens is another. Write out a simple plan for what you’d do if you were laid off, had a big car repair, or faced an unexpected medical bill. Having clarity reduces stress in the moment.

Money Example: Let’s say your essential expenses for a month are $3,000. Break that into smaller chunks—saving $250 every paycheck gets you there in about 6 months. But if you look at your wallet and notice that $250 doesn’t fit, tailor it to still give yourself traction towards the action of your goals.

Step 2: Audit Your Spending And Cut The Noise

Your spending habits are like your “screen time”—you might not realize how much small, everyday expenses add up until you review them. Here’s how to audit and adjust:

Subscriptions: Check your streaming services, apps, and memberships. Are you using all of them? If not, cancel and redirect those funds into savings.
Bills: Negotiate lower rates for services like your internet, phone, or even insurance. Many companies will offer discounts if you ask—or if you threaten to switch providers.
Bank Fees: Are you paying monthly fees on checking or savings accounts? Look for no-fee accounts to save.
Insurance Review: Make sure your coverage reflects your needs. For instance, if you’re in areas prone to natural disasters (like California and its wildfires), ensure you’re protected. Heck, folks have been noticing that their auto insurance has been insane - make sure that you are getting a quote and then negotiating against that quote. Also, check to see what your health insurance is covering and USE IT ALL. Be mindful that some of that “in-network” and “out-network” shifted your treatment, know before having to need.

You know I have a blog post talking about how to do this, right?!

Fund Tip: Use a budgeting app or spreadsheet to track every dollar you spend for 30 days. You might be surprised to see where your money goes.

Step 3: Make Investing Simple And Intentional

Investing might feel like a luxury when money is tight, but even small, consistent contributions can grow over time. Here’s how to start or optimize your investing:

401(k): If you have access to a 401(k), check your contribution rate. Are you taking full advantage of any employer match? Review your investment funds to ensure they align with your goals. Think about the increase of 1% more than you did last year, last quarter. When you ask for more, move a bit more into this “pocket”.
IRAs & Old Accounts: Do you have an old 401(k) or HSA from a previous job? Don’t let it sit idle—roll it over into an IRA or HSA provider that offers low fees and better growth options. Don’t just hit that $7000 contribution match that you see all the cool kids talking about, distribute it into some ETFs and Index Funds to grow it.
Fractional Shares: You don’t need thousands to invest. Platforms like Public or Fidelity let you buy fractional shares of stocks or ETFs for as little as $5.
Investing Your HSA: If you have an HSA and aren’t investing a portion of it, you’re leaving money on the table. Research how to invest within your HSA for medical expenses down the road.

Step 4: Restructure With A Financial Rhythm

To stay on track in 2025, it’s crucial to break big goals into smaller, manageable steps. Here’s a rhythm to consider:

Quarterly Goals: Tackle larger goals like saving $1,500 for your emergency fund or paying down $2,000 in debt.
Monthly Check-ins: Sit down at the end of each month to review your spending, savings, and progress toward goals.
Weekly Habits: Every week, take a small action—like meal prepping to save on groceries or setting aside $20 in savings.
Daily Mindfulness: Ask yourself one simple question before spending: “Does this align with my goals for the year?”

Money Example: If your goal is to save $5,000 this year, break it down: That’s $1,250 per quarter, about $417 per month, or $14 a day.

Step 5: Focus on Growth, Not Just Survival

2025 isn’t just about surviving financially—it’s about setting yourself up for growth. Here’s what that looks like:

Emergency Fund: Beyond saving 3–6 months, consider what’s next. Could you save for a down payment, start a business, or take a big trip?
Investing: No matter the amount, start or continue investing. Small amounts grow into big results over time.
Maximizing Savings Tools: Open an HYSA, research certificates of deposit (CDs) for higher returns, or even explore I Bonds.
Building a Financial SOP: Create a system that works for you—automated savings, budget check-ins, clear investment strategies, and regular audits.

On a recent short-form video content I talked about budgeting you within your budget. Yes, we know about savings accounts for emergencies, but neglecting yourself when it comes to your money is another thing. Billing at least 1% of your budget into taking care of you! Here's how it could look:

Free/low-cost: Journaling, podcasts, walking.
Mid-range: Nails, eating out, skincare.
Splurge: Concerts, designer bags, trips.

Group them so you’ve got options for every budget and mood. I usually break them down like $FREE.99 - $25, $26- $40, $41+. Keep the list visible so when you budget your paycheck you can pick from it. Learn more about this on Threads; I might make this into either a Blog post/ YouTube in the future.

Fund Thoughts

The economy might feel unpredictable, but your money doesn’t have to be. By reflecting on last year’s financial wins and misses, and restructuring with intention, you can make 2025 the year your money works for you, not the other way around.

Remember, financial success doesn’t happen overnight—it’s the result of small, consistent actions over time. Let’s make this year your most intentional and successful financial year yet.