Reflect, Reset, and Strengthen Your Finances for the New Year

Veterans often face unique financial challenges, from managing VA benefits to adjusting to civilian pay structures. Reflecting on the past year helps you identify what’s working and where you may need to pivot. By taking the time to evaluate, you can set a clear path forward—one that’s tailored to your needs and the goals you want to achieve.

Step 1: Recognize Your Financial Wins

Start by celebrating your achievements. These could be big wins, like paying off a credit card or building an emergency fund, or smaller successes, like sticking to a weekly budget or cutting back on unnecessary spending.

Here are some questions to guide your reflection:

• Did you hit any savings milestones this year?
• Were you able to pay down debt or avoid taking on new debt?
• What financial habits did you develop that helped you feel more in control?

Celebrating these wins reinforces positive behaviors and gives you the motivation to keep going. No win is too small—every step counts.

Step 2: Identify and Learn from Setbacks

Financial setbacks happen to everyone, but for Veterans, they may stem from unique circumstances. Perhaps you faced unexpected medical expenses, struggled with transitioning from military to civilian employment, or underestimated the cost of relocating.

Use these questions to dig deeper:

• What challenges had the biggest impact on your finances this year?
• Were these challenges preventable, or were they beyond your control?
• What steps can you take to avoid similar setbacks in the future?

Remember, setbacks don’t define your financial journey—they’re opportunities to learn, adapt, and grow.

Step 3: Revisit Your Savings and Financial Goals

At the start of the year, you likely set financial goals—whether that was building an emergency fund, saving for a major purchase, or planning for retirement. Now is the time to revisit those goals and assess your progress.

Here’s how to do it:

1. Evaluate Your Progress: Did you achieve your goals? If not, how close did you get?
2. Adjust as Needed: Life changes, and so do financial priorities. Update your goals to reflect your current situation.
3. Use a Plan: If you’re not sure how to get started, check out our Spending and Savings Plan. It’s a simple tool to help you balance your expenses while working toward your financial goals.

Step 4: Celebrate Small Wins and Everyday Financial Habits

While big goals like buying a home or paying off debt are important, the small, consistent habits you’ve built throughout the year are just as valuable. These might include:

• Sticking to a weekly or monthly budget. 
• Automating savings—even if it’s just $10 a month.
• Choosing cost-saving measures like cooking at home instead of dining out.

Small wins compound over time, leading to big financial gains. Embracing a “start small, think big” mindset can help you stay motivated as you work toward your long-term goals.

Step 5: Create a Financial Plan for the New Year

Looking back on your financial journey helps you plan for what’s ahead. Use the insights you’ve gained to set actionable, achievable goals for the new year.

Here are a few steps to create your plan:

1. Set SMART Goals: Make your goals Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying “save more,” set a goal to “save $500 in an emergency fund by June.”
2. Take the Veteran Saves Pledge: Commit to making savings a priority in 2025. When you take the pledge, you’ll receive personalized support, tips, and reminders to help you stay on track. Sign up here.
3. Track Your Progress: Use a tool like our Spending and Savings Plan to monitor your income, expenses, and savings each month.
4. Celebrate Along the Way: Keep the momentum going by acknowledging your progress, no matter how small.