Reflecting on 2025. Looking to 2026.
It is the time of year that we all reflect on the year that is coming to an end and the year that is ahead of us. As we get older, we reflect on how quickly time goes by, when we are younger, we look forward to what is ahead of us. Reflecting and looking ahead are powerful tools in your financial journey.
Look back at 2025. It wasn’t all bad, it wasn’t all good. Some of it we just got through, some we excelled at. First, look at your “Wins.”
What went right, financially? Did you get a raise? A new job? A big tax refund? An inheritance? Did you win the lottery and are now a billionaire? Good for you! Celebrate every extra penny you have coming in. Ok, pennies are no longer a thing, celebrate every nickel! The point is that if you are in a better place than you were 1 year ago on the credit side of your ledger, celebrate it. It doesn’t mean that your expenses didn’t increase, they did. But that is another step.
In adulting (0 out of 10, Do Not Recommend,) celebrating wins makes a difference. Financially, emotionally, spiritually, whatever step moves you forward in a positive way, embrace it! Your financial debits will increase all the time. Look at your increases though, progress in any way is something to be proud of. You had your review, it was decent and you got a raise. Well done you!
Did you retire in 2025 and set up your Social Security, retirement, Medicare, all of it? You are a Superstar! Trust me, I see it all the time and while we all look forward to retirement, there is a lot of work that goes into getting everything set up right.
Maybe you set up a budget and stuck to it. You have discovered that you are able to take your 1st vacation, ever or in 5 years, whatever. YOU DID IT! You were able to put that down payment on the house you have always wanted. CELEBRATE! Maybe your car broke down and because you set up an emergency fund, it didn’t take borrowing from Peter to pay Paul to get it fixed. WIN! Be proud of yourself.
But 2025 wasn’t all wins, was it?
Did you lose your job or get injured? I am sorry, that is tough, my family has been there, it is not easy. Do you have loans and/or credit cards? Contact your financial institution. Contact your mortgage company, make sure that you are keeping them in the loop.
Prices are higher, across the board. Electric, Bam! Food, wow. People I know set up an entire system. They look at the ads for their local stores, plot out what is cheapest where and then they go to numerous stores to shop the sales. Map out your menu for the week by using the sale flyers that come to your email (some stores and newspapers still print them). Yes, it takes time, but it really can save you. Keep an eye on social media for budget friendly meals. You might find new things that your family will eat and save a bit of money along the way.
I have heard a lot of people in the last couple of months tell me that their cars are in the shop. It seems that it really ‘Tis the Season. New/used car prices are high, repair costs are high. Bills are high and paying for any of these is not easy. Cutbacks must be made. Payment arrangements worked out. Sadly, sometimes that is how it is. Take a breath, know you are doing everything that you can and that is enough.
Did you spend too much on the holidays? I know it is hard to admit but yes, many of us do this. We may want to give certain things to our kids, siblings, or friends so you pull out your credit cards. Just one more cute shirt for your 13-year-old. It is too late to take it back, it is done. Give yourself the scolding that you know that you want to and vow to be better next year (it will stick this year!).
What now? Look ahead. 2025 is done. There is little that you can undo. So, start anew. Do you need help with your finances? Reach out. Talk to a Financial Counselor. Did you empty your emergency savings? Start over. Get back on track then increase it a bit. Did you feel like you broke even and 2026 might be your year? Do you think you can save money for that trip to Disney, London or Aruba? Set up a savings account dedicated to this specific goal.
Remember, no year is perfect and the economy has highs and lows. We take the wins with the losses and remember that we have made it through tough times before, we will again. We remember that we have had big wins in the past and we will this year too. There is no other you in this world so appreciate the highs and lows. The lows make the highs that much better!
Thank you 2025 but Welcome 2026!