2025 New Year Goals – Retire by 40

Happy New Year! 2025 is here and it’s time for a fresh start. Isn’t it great to have this chance every year? The gym is already full of optimistic people, really full. I don’t like going to the gym in January at all. There are way too many people there. I swear they must be breaking some fire code. I can’t wait until spring. There will be much fewer gym-goers by then. Most people can’t stick to their New Year resolutions for long.

I’ve been pretty good with my goals. The key is to track them on a spreadsheet and update the status monthly. That way I know which goals I need to work on. Today, I’ll share some tips on goal setting. You can see my 2025 goals after that. Check them out.

Setting goals

In previous years, I had moderate expectations and set goals accordingly. This worked well because I could accomplish most of my list. I find that setting high expectations doesn’t work for me. I can’t achieve them and then I become discouraged. My style is to go slow and steady. Shooting for the moon is probably better for younger folks, though.

Here is my approach to New Year Goals.

• Set achievable goals – Don’t shoot for the moon unless you have a sterling record of high achievement. Most of us will become discouraged and give up.
• Make specific and measurable goals – New Year goals need to be very specific. Don’t make vague goals like saving more or eating healthier. You can’t keep track of it and you’ll forget about them by April. A better goal would be maxing out your 401(k). That’s measurable. You also need to figure out a way to get there. Will you increase your 401(k) contribution right away? You need a plan or else it’ll be much harder to achieve these goals.
• Write them down and track your progress– Write down your goals and put them where you will see them. The refrigerator door is a good spot for many people. Personally, I put my goals here on Retire by 40 and update the spreadsheet monthly. This worked very well over the last 14 years. I have a public audience and you give me the motivation to improve. I made tremendous progress with our finances and personal life since I started blogging. It’s amazing.
• Academic scale – These days, I grade my New Year goals on an academic scale. It works out well. 90% is still an A-. It’s motivating and I feel good about the result.

2025 New Year Goals

This is my goal sheet below. It’s simple and helpful. I can see my progress at a glance and it’s easy to update every month.

Financial Goals

Sell Rental Condo

This is my main goal for 2025. Our tenant is moving out of our rental condo soon. I need to fix it up and sell it. Unfortunately, this rental condo hasn’t appreciated much. The building was converted from an apartment to a condo in 2006. This unit sold for $240,000 back then. We purchased it in 2010 in a foreclosure for $140,000. This was in the aftermath of the 2008 subprime mortgage crisis.

Today, we’d be lucky to sell it for $200,000. It’s crazy because the real estate market appreciated so much elsewhere. I should have purchased a single family home in 2010 instead of a condo. Unfortunately, I never had much luck with real estate.

Anyway, I plan to travel more and don’t want to be a landlord anymore. It’s time to sell.

Prep duplex for sale

Along the same lines, I plan to sell off our duplex after RB40Jr finishes high school. This is the duplex we live in. We need to move to southern California to be closer to families. Mrs. RB40’s parents are getting older and they need more help.

This year, I need to meet with a realtor and figure out what we need to fix. The first item on the list is exterior repair and repaint. I’d be happy if we can get at least that much done. I plan to hire this out. These days, I try to avoid the ladder as much as possible.

Max out my Roth IRA

The Roth IRA is the best investment account you can have. You don’t have to pay tax on the gains when you withdraw. This is huge. If you start young and max out your Roth IRA every year, it’ll be a great resource in retirement.

I’ve maxed out my Roth IRA contribution for over 20 years. But that streak will be coming to an end sooner or later. The reason is simple. You can only contribute to the Roth IRA with earned income. My earned income is dropping like a rock and I might not make enough this year. In 2025, the contribution limit for a Roth IRA is $8,000 if you’re 50 or older. We’ll see if I can earn enough to hit the max.  

Track net worth and hope for +10%

I’ve been tracking our net worth since 2006. It’s great to see the progress. This year, I’d like to see 10% gains. At this point, it’s all dependent on the stock market and there isn’t much I can do to influence this goal. I’ll just track it and keep my fingers crossed.

Health Goals

Exercise more than last year

Last year, I set a goal to exercise 3 times per week. However, I developed elbow pains and I had to scale back a bit. The result – I exercised 120 times, 77% of my goal. That wasn’t bad, but I’d like to do more this year.

Win claim denial

Last year, RB40Jr got a Cochlear Implant to improve his hearing. He has 50%-80% hearing in his left ear. He tried a hearing aid for years, but it didn’t help much. He can hear a bit with his left ear, but he can’t understand speech on that side. He also can’t tell which direction a sound is coming from.

Recently, the FDA approved Cochlear Implant for children. At first, I thought we could wait until RB40Jr is an adult. Then he can decide for himself. However, our audiologist said the earlier you get the implant the better. If you wait too long, the brain might not be able to adapt to the Cochlear Implant.

Anyway, he got the implant last year. However, the insurance denied the claim! They said Cochlear Implant is experimental and doesn’t improve overall health. This is ridiculous. The device has been used since the 80s to improve lives. I’m fighting this denial. Health insurance companies are denying as many claims as possible to improve profits. A lot of people get too sick to fight the denials. No wonder everyone hates health insurance companies.

Fun goals

Sell my ceramic projects

Last year, I took 2 ceramic classes at the community center and had a blast. My projects aren’t professional level yet, but I’ll try selling a few items this summer. The community center will have several art sales this year. I’ll get my name on the list and hope for the best. My ceramic projects might not sell, though. My aesthetic is unconventional…   

Would you buy any of these bowls? My price would be $18 each. Heh heh… That’s cheap for a handmade tea bowl.

More dates

This year, I plan to go out with Mrs. RB40 more often. If you’re a parent, you know how hard this can be. Fortunately, our son is a teenager now. We can go out whenever we want. However, I need to overcome my reluctance to leave the house in the evening. We park in the street and finding a spot is a pain at night. Ugh! I’d rather hunker down at home than go out to a restaurant.

I plan to go out on date lunches with Mrs. RB40 instead. That’s way easier. Who wants to leave home after dark?

Happiness level > 8

I’m a naturally happy guy so this should be easy. Life has been pretty darn good over the last few years.

On to 2025!

Alright! Those are my goals for 2025. I’ll update the spreadsheet monthly in my FIRE update posts. This is the key. If you don’t track your progress, you’ll forget about your New Year goals by spring. What are you waiting for? Make a goal sheet and start tracking your progress.

What are your goals for 2025? Happy New Year and good luck!

*Passive income is the key to early retirement. These days, I’m investing in commercial properties with CrowdStreet. They have many projects across the United States. It’s been working so well that I’m planning to sell our rental condo so I can invest more. Go check them out!

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Joe started Retire by 40 in 2010 to figure out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at 38.

Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects across the USA so check them out!

Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.