As we transition from January to February, it’s the perfect time to pause and reflect on the personal finance resolutions that many of us set at the beginning of the year. New Year’s resolutions are often filled with ambition and optimism, but they can be challenging to stick to. In the realm of personal finance, this is no different. Whether your goal was to reduce debt, save more, invest, or simply get your financial house in order, the reality of following through often becomes clearer after the first month of the year.
February offers a unique opportunity for a financial check-in. It’s far enough from January to gauge progress but not so far that any missteps can’t be corrected. This article will explore how to assess your financial resolutions after one month, strategies to stay on track, and tips for making any necessary adjustments. Whether you’re succeeding or struggling with your financial goals, this check-in can serve as a springboard to make February and beyond more financially successful.
1. Reflect on Your Progress So Far
The first step in a February check-in is simply to assess where you stand in relation to the goals you set back in January. Take a moment to ask yourself a few questions:
- Have I made any tangible progress on my financial goals?
- Have I stayed on track with my spending, saving, or investing habits?
- Am I still motivated by the goals I set in January, or has my interest waned?
For example, if your goal was to cut back on discretionary spending, look at your bank statements and see if you’ve been able to stick to your budget. If you aimed to save a specific amount by the end of February, check whether your savings account reflects this. If you’ve set up an automatic transfer into your savings each payday, are you keeping up with that? If you wanted to reduce debt, how much have you been able to pay off?
Track Your Financial Habits
Financial resolutions often involve shifting your habits, and habits take time to develop. One of the best ways to track progress is through regular reviews of your spending, saving, and investing patterns. Use tools like budgeting apps, financial spreadsheets, or even just a handwritten ledger to monitor your progress. Seeing your behavior in black and white makes it easier to identify trends, both positive and negative.
In the first month of the year, you may find that some financial behaviors have improved while others are more challenging. For example, you might be surprised at how quickly you managed to reduce your credit card balance, but maybe you’ve struggled with cutting back on eating out or online shopping. Identifying these wins and setbacks will help you refine your strategy for February and beyond.
2. Evaluate Your Budget and Spending
By February, you should have a better understanding of how your budget holds up in the real world. Budgets are wonderful tools, but their true effectiveness is often revealed after you’ve lived with them for a month. Have you been able to stick to your set spending limits? Have you encountered unexpected expenses that have thrown you off course?
If you haven’t been able to stay within your budget, it’s important to assess why. Were there areas where you were too strict, and the budget was unrealistic? Or were there areas where you underestimated your actual expenses? Consider adjusting your budget to reflect more realistic spending habits and include more flexibility for the unexpected.
Some people find success with a “zero-based budget,” where every dollar is assigned a job, whether it’s for saving, investing, or spending. Others prefer a more relaxed “50/30/20” budget, which allocates 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. Whichever method you use, a February check-in offers a great time to adjust and fine-tune your approach.
Cutting Back on Unnecessary Spending
Another key part of your financial check-in is to reflect on whether you’ve been able to reduce unnecessary spending. For many, one of the easiest ways to save money is to curb spending on non-essential items. During January, it’s tempting to indulge in sales, post-holiday discounts, or even in the spirit of New Year’s “fresh starts.” However, this can quickly derail your financial goals.
In February, try to take a deeper look at any recurring subscriptions or impulse purchases. Are there subscriptions you don’t use anymore? Are there small, daily expenses that add up over time (like coffee shop visits, streaming services, or meal delivery services) that could be reduced or eliminated? Cutting out these “budget leaks” can significantly increase your ability to meet your financial goals.
3. Reevaluate Your Savings Goals
At the start of the year, many people set ambitious savings goals, such as building an emergency fund, saving for a vacation, or contributing more to retirement. By the time February rolls around, it’s important to assess whether you are on track to meet these savings targets.
Emergency Fund
An emergency fund is one of the most important financial goals to focus on, especially at the start of the year. If you set a goal of saving 3-6 months of living expenses, ask yourself: Are you contributing to it regularly? Have you reached your target for the month? If you haven’t been able to save as much as you hoped, consider adjusting your monthly savings target to be more achievable.
Building an emergency fund is a gradual process, but even small contributions make a big difference over time. If you haven’t started yet, February is an excellent time to establish a plan and start saving regularly, even if it’s just a few dollars per week.
Retirement Savings
If your goal is to ramp up retirement savings, now is also the time to check in on your progress. For example, if you’re participating in a 401(k) or other employer-sponsored retirement plan, check whether you’re taking full advantage of any employer match. If you’re saving in an IRA, evaluate whether you’re contributing enough to reach your target for the year.
One helpful tip is to set your contributions on autopilot, so you don’t have to think about them each month. Automated contributions to your retirement accounts can ensure that you stay on track to meet your long-term savings goals without having to actively manage them every month.
4. Tackle Debt Reduction
Debt is often one of the most pressing concerns when it comes to personal finance. Whether you’re focused on paying down credit card balances, student loans, mortgages, or personal loans, the path to financial freedom often involves eliminating debt. By February, you should have a clearer sense of how much progress you’ve made in reducing your debt.
Debt Repayment Strategy
If your goal was to pay off debt, the best place to start is by evaluating your repayment strategy. Are you using the snowball method (where you pay off the smallest balance first) or the avalanche method (where you target the debt with the highest interest rate first)? Both methods have their benefits, but it’s important to choose the one that aligns with your priorities.
If your resolution was to pay down high-interest credit card debt, now is the time to evaluate how much you’ve paid off and whether you’re still on track to achieve your goal. If you’ve hit a roadblock, it might be time to revisit your approach. For example, you could consider consolidating high-interest debts into a lower-interest loan or negotiating for better terms with your creditors.
5. Adjust Your Financial Goals if Necessary
It’s important to be realistic about your financial goals. If you’ve encountered obstacles or setbacks in January, it’s okay to adjust your goals. Sometimes life happens—unexpected expenses or a shift in priorities may require you to scale back your original financial targets.
For example, if you aimed to pay off $5,000 in credit card debt by June but haven’t made significant progress in the first month, you might want to adjust your timeline or increase your monthly payments slightly. Similarly, if your savings goal seems too ambitious given your income or current circumstances, it’s okay to lower your expectations while still keeping a focus on saving regularly.
Making adjustments doesn’t mean you’re failing—it simply means you’re being realistic and adaptable. Staying flexible with your goals ensures that you’ll maintain momentum and still make meaningful progress toward your financial future.
6. Stay Motivated for the Long-Term
One of the hardest parts of personal finance resolutions is staying motivated over the long term. After the excitement of the new year fades, it can be easy to lose sight of your goals. However, regular check-ins—like the one you’re doing now in February—are a great way to stay connected to your financial priorities.
Visualizing Success
To keep yourself motivated, try visualizing your success. Whether it’s imagining the feeling of being debt-free, the joy of seeing your retirement account grow, or the relief of having an emergency fund in place, keeping these end goals in mind can help push you through the moments when progress feels slow.
You might also want to celebrate your small wins, like reaching a savings milestone, sticking to your budget, or paying off a credit card. Celebrating achievements, no matter how small, reinforces positive behavior and keeps you on track toward your long-term goals.
February is Your Opportunity for Financial Success
Your February financial check-in offers the perfect opportunity to reflect, reassess, and adjust your goals for the rest of the year. By reviewing your progress, refining your approach, and staying flexible, you’ll be well-equipped to meet your financial goals by the end of the year. Remember, personal finance is a marathon, not a sprint. Even if you encounter setbacks or challenges, don’t lose sight of your overall goal. With perseverance, discipline, and regular check-ins, you can achieve financial success in 2025 and beyond.
