2025 Financial Planning Q&A

To balance out the mortgage and lending side of the 2025 conversation, I also sat down with Andrew Baker, Financial Advisor at Financial Haus, to talk about the bigger picture. We covered year-end planning, saving, investing, debt, and the habits that actually move the needle long term. Below is our full Q&A, shared exactly as discussed.

Q: What are the most important financial tasks people should complete before the end of the year, regardless of income or assets?

A: A year-end money audit. Look at your cash flow, update your net worth, confirm your savings rate, list your debts, and check your emergency fund. Most people avoid this because it feels overwhelming, but clarity is the fastest path to control.

Q: What should someone review before December 31 if they want to lower their taxable income or maximize deductions?

A: Review retirement contributions, HSA funding, charitable giving, and opportunities for tax-loss harvesting. Small moves before 12/31 can meaningfully reduce taxable income.

Q: What habits or changes can someone start now to set themselves up for a stronger financial position in 2026?

A: Automate as much as possible: savings, investing, bill pay. When the essentials run on systems instead of willpower, building wealth becomes easier.

Q: How can someone tell if they are saving enough for long-term goals like retirement, travel, family planning, or financial independence?

A: Their savings rate is the main indicator. Aiming for 15–25% of gross income across all accounts puts most people on track. Those pursuing early financial independence will usually need to save more.

Q: Is it better at year end to focus on paying off debt, building savings, or investing, and how does someone decide?

A: Look at three areas: security, stability, and growth.
If someone has no emergency fund, savings comes first.
If they have high-interest debt above roughly 10–12%, pay that down.
If both are solid, invest for future goals. Your weakest area sets your priority.

Q: Should people adjust their investments, retirement contributions, or risk level going into a new year, especially when markets are unpredictable?

A: Adjust intentionally, not emotionally. Rebalance once a year, confirm the investment mix matches your time horizon, and make sure risk is aligned with your actual goals, not the news cycle.

Q: How does someone decide whether to invest extra money or hold more cash as a safety net?

A: Ask two questions: Do I have 3–6 months of expenses saved? Will I need this money within the next 2–3 years?
If the answer is no and yes, keep cash.
If the answer is yes and no, investing typically makes more sense.

Q: What life events should trigger a financial check-in?

A: Any major change that affects someone’s income, expenses, or priorities: moving, marriage, divorce, new job, career transition, having a child, buying property, receiving an inheritance, or starting a business. Transitions are a natural time to adjust the plan.

Q: If someone has been trying to budget and can’t stick to it, what strategies or tools work best going into a new year?

A: Use a simple cash-flow structure instead of strict budgeting. Pay-yourself-first, 50/30/20, or weekly spending check-ins work well. Automation removes the need for constant discipline, and small weekly reviews prevent things from spiraling.

Q: What are some common struggles you’ve helped clients overcome?

A: Avoiding finances out of fear, inconsistent habits, emotional spending, debt patterns, and confusion around investing. Once people have clarity, structure, and accountability, confidence usually replaces anxiety quickly.

Q: What is one or two nuggets of financial wisdom everyone should carry into the New Year?

A: Money grows when you give it direction.
Your habits matter more than your income.

To get in contact with Andrew

ANDREW BAKER
Financial Planner | Founder

California Insurance License #0I4437

1253 University Ave #1002
San Diego, CA 92103

Cell: +1 619 357 0402
Office: +1 619 641 3619

[email protected]
www.theFinancialHaus.com