7 Personal Finance Moves You Should Make in the New Year

The beginning of a new year is an ideal opportunity to reassess your financial habits, set clear goals, and position yourself for greater stability in the upcoming year. By making a few intentional adjustments now, you can create a strong foundation for smarter spending, improved savings, and long-term financial success! 

Here are 7 personal finance moves to help you kick off the new year with clarity and confidence.

1. Review Your Budget (or Create Your First One!)

Think of a budget as a roadmap, not a restriction. Take a few minutes to look back at where your money went last year (groceries, gas, dining out, Amazon “treat yourself” moments) and build a realistic plan for the year ahead. 

Tip: If you use Deerwood’s online or mobile banking, look at last year’s transactions to spot trends and areas where you might want to rein things in (or give yourself more room).

2. Check Your Subscriptions

This one is always eye-opening. Over the year, we tend to accumulate streaming services, apps, fitness subscriptions, cloud storage, music platforms… the list grows fast. 

Do a regular audit on your subscriptions: 

• Cancel services you don’t use 

• Downgrade tiers where you’re overpaying 

• Combine family plans when possible 

Even trimming a few unused subscriptions can save you hundreds throughout the year.

3. Re-Quote Insurance (Home, Auto, Renters, Life)

Insurance premiums tend to creep up over time. Many Minnesotans don’t realize that simply shopping around annually can lead to major savings. 

What to look at: 

• Auto insurance 

• Home or renter’s insurance 

• Life insurance 

• Specialty insurance (boats, cabins, snowmobiles) 

You don’t need to switch companies every year but getting a quote or two keeps you informed and ensures you’re not paying more than you should.

4. Revisit Your Savings Goals

Savings shouldn’t feel overwhelming, but they should be intentional. The new year is a great time to consider bucket-type savings accounts for: 

• Emergency fund 

• Vacation fund 

• Home repair/update fund 

• Holiday spending fund 

• Long-term investments 

If you got a raise this year, even increasing your automatic savings by $10–$20 per paycheck can add up quickly.

5. Take Inventory of Your Debt & Create a Pay-Down Plan

Removing the stress of debt starts with getting a clear picture. List every debt: balance, interest rate, and minimum payment. 

Two simple strategies to consider: 

• Snowball method: focus on paying off the smallest balances first 

• Avalanche method: focus on the highest interest rates first 

Pro tip: Consolidation or refinancing might simplify payments, our Deerwood Bank team is always happy to help explore options.

6. Maximize Employer Benefits

So many people leave money on the table! Take time to re-evaluate: 

• 401(k) or retirement contributions (try to at least hit any employer match) 

• HSA or FSA accounts 

• Dependent care benefits 

• Health plans 

• Wellness reimbursements available 

Adjusting these in January gives you 12 full months of benefits.

7. Set One “Big Picture” Money Goal for the Year

You don’t need 15 resolutions, just one clear, motivating goal. 

For example: 

• Save $5,000 for a vacation 

• Pay off a credit card 

• Build a 3-month emergency fund 

• Start a side savings account for a home or cabin 

• Finally get organized with your finances 

Write your goal somewhere so you’ll see it often, and check in monthly. 

Financial wellness isn’t about perfection. It’s about progress, clarity, and knowing you’re moving in the right direction. A few intentional steps in January can set the tone for your entire year. 

If you ever want help choosing the right account, exploring savings tools, or planning for the future, the Deerwood Bank team is here to make personal finance and banking Nice & Simple.