5 Money Moves to Consider This New Year

Happy New Year! I hope you’ve had time to celebrate your wins from 2025, big and small, and reflect on what you want more of in the year ahead.

For many first-generation wealth builders, the New Year can bring mixed emotions. There’s motivation to “get it right” financially, but also pressure.

Financial goals often show up on New Year’s resolution lists. A common challenge isn’t the goals themselves, it’s that they’re often unrealistic, overly aggressive, or disconnected from real life. When that happens, momentum fades fast.

The goal this year isn’t perfection. It’s clarity, intention, and realistic progress. Small, attainable goals are often what create lasting change, especially when you’re building wealth for the first time.

Here are five money moves first-generation wealth builders can focus on this year to feel more grounded, confident, and in control.

1. Create a Spending Plan That Reflects Your Life

For many first-gen professionals, no one ever sat us down and explained how to manage money intentionally. We learned by watching, surviving, and figuring it out as we went.

Your spending plan is one of the foundations of your financial life, not because it’s restrictive, but because it creates awareness, which then leads to intention.

Start with reflection:

• Where has your money actually been going?

• What spending felt aligned with your values?

• Where did money quietly leak away?

Once you understand your past spending, create a forward-looking spending plan that reflects your real life, not someone else’s idea of “perfect.”

This is about intentionality, not restriction.

Take control of your spending, don’t let it control you.

2. Pay Down Debt to Reduce Financial Stress

High-interest debt, like credit cards, can feel like a constant weight in the background. Is your debt supporting your life, or limiting your options?

What to do:

• List out all your debts, balances, and interest rates.

• Make sure your debt payments fit realistically into your spending plan.

Two common debt-payoff approaches include:

• Avalanche Method: Focus extra payments on the debt with the highest interest rate first (while making minimum payments on the rest).

• Snowball Method: Focus extra payments on the smallest balance first to build motivation as balances reach zero.

The avalanche method typically saves more on interest, while the snowball method can help build momentum. Either approach can work, the best plan is the one you’ll stick with. Just remember: this works best when you stop adding new debt and have some savings set aside for surprises.

3. Build an Emergency Fund for Financial Breathing Room

One meaningful difference between financial stress and financial stability is having a cushion.

If something unexpected happened, car trouble, a medical bill, or a job disruption, would you be okay?

An emergency fund can help reduce the risk of falling backward when life happens. A common guideline is three to six months of living expenses in a savings account, but everyone’s situation is different.

• Start with a goal that feels supportive. Aim for one month at a time.

• Ask yourself: how long would it realistically take me to find a similar-paying job in today’s economy? Maybe your emergency fund need is much more.

Even a small emergency fund can meaningfully reduce stress and improve decision-making.

4. Plan for the Predictable (Because Not Everything Is an Emergency)

Many expenses that throw us off track aren’t surprises—they’re just unplanned.

Think about:

• Insurance premiums paid once or twice a year

• Property taxes

• Car registration

• Annual subscriptions

These expenses often get labeled as “emergencies,” when they’re actually predictable.

By planning ahead and setting money aside gradually, you create calm and consistency throughout the year, and help avoid the cycle of financial setbacks.

5. Save for Short-Term Goals That Make Life Enjoyable

Building wealth isn’t just about survival or future obligations. It’s also about enjoying the life you’re working so hard to build.

Ask yourself:

• What am I excited about in the next 6–24 months?

• This could be a vacation, upgrading furniture, replacing a car, or celebrating a milestone.

Short-term goals keep money connected to joy, motivation, and progress, especially important for first-generation professionals who are used to delaying gratification.

Choose one goal, give it a rough timeline, and start saving intentionally.

Your finances don’t need to be perfect to move forward. Progress comes from starting where you are, staying flexible, and adjusting along the way.

I’ll leave you with a reminder:

“The best time to start was yesterday. The next best time is today.”

This material is intended for educational purposes only. The information and opinions expressed on any websites linked in this material are from unaffiliated third parties. While they are deemed trusted and reliable, we cannot guarantee their accuracy.