NEW YORK —Whether you’re saving to move out of your parents’ house or pay off student loan debt, financial resolutions can help you stay motivated, said Courtney Alev, consumer advocate for Credit Karma.
“Entering a new year doesn’t erase all our financial challenges from the prior year,” Alev said. “But it can really help to bring a fresh-start mentality to how you’re managing your finances.”
Here are some tips from experts.
Change your relationship with money: Think about how you currently deal with finances — what’s good and bad, and what can improve.
“Let this be the year you change your relationship with money,” said Ashley Lapato, personal finance educator for YNAB, a budgeting app.
If you feel like money is a chore, that there’s shame surrounding the topic of money, or like you were born being “bad at money,” it’s time to change that mentality, Lapato said.
Know your “why”: When setting your financial resolutions for 2025, it’s important to establish the “why” of each, said Matt Watson, CEO of Origin, a financial tracking app.
“If you can attach the financial goal to a bigger life goal, it’s much more motivating and more likely you’ll continue on that path,” Watson said.
Whether you’re saving to buy a house, pay off credit card debt or take a summer vacation, being clear about the goal can keep you motivated.
Budget, budget, budget: “After three years of inflation, your pay increases are likely still playing catch up to your monthly expenses, leaving you wondering where all the money is going,” said Greg McBride, chief financial analyst at Bankrate. “Make that monthly budget for 2025 and resolve to track your spending against it throughout the year.”
Pay down outstanding debt: “Interest rates aren’t likely to come down very fast, so you’re still going to have to put in the hard work of paying down debt, especially high-cost credit card debt, and do so with urgency,” McBride said.
Start by taking stock of your current debt relative to the beginning of the year. Hopefully, you’ve made steady progress on paying it down, but if you’ve gone in the other direction, McBride encourages making a game plan.
Take control of your credit card interest rate: “You have more power over credit card interest rates than you think you do,” said Matt Schulz, chief credit analyst at LendingTree. “Wielding that power is one of the best moves you can make in 2025.”
A 0% balance transfer credit card is “a good weapon” in the fight against high card APRs, or annual percentage rates, he said. A low-interest personal loan is an option as well.
Set realistic, practical goals: When planning your financial resolutions, Credit Karma’s Alev suggests considering how you’ll make your goals sustainable for your lifestyle.
“It really is a marathon, not a sprint,” Alev said.
Alev recommends setting realistic, practical goals to make it easier to stick with them. For example, instead of planning to save thousands of dollars by the end of the year, start by saving $20 a paycheck.
Don’t bury your head in the sand: “You can’t manage what you can’t see, so set a New Year’s resolution to check your credit score monthly in 2025,” said Rikard Bandebo, chief economist at VantageScore. “Be sure to pay more than the minimum on your credit accounts, as that’s one of the best ways to boost your credit score.”
Automate savings where possible: Automated changes, such as increasing workplace 401(k) plan contributions, setting up direct deposits from paychecks into dedicated savings accounts, and arranging for monthly transfers into an IRA and/or 529 college savings accounts, all add up quickly, McBride said.
Slow down: Your financial goals can encompass more than just managing your money better — they can also be about keeping your money safe from scams. A golden rule to protect yourself from scams is to “slow down,” said Johan Gerber, executive vice president of security solutions at Mastercard.
Scammers use urgency to make people fall for their tricks, so taking your time to make any financial decision can keep you from losing money.
Focus on financial wellness: Finances are deeply connected with our mental health, and, to take care of our money, we also need to take care of ourselves. “I think that now more than any other year, your financial wellness should be a resolution,” said Alejandra Rojas, personal finance expert and founder of The Money Mindset Hub, a mentoring platform for women entrepreneurs. “Your mental health with money should be a resolution.”
