As 2024 draws to a close, you might find yourself reflecting on financial goals for the coming year.
Whether your focus is on saving to move out of your parents’ home or paying off student loan debt, setting financial resolutions can be a powerful motivator, says Courtney Alev, a consumer advocate at Credit Karma.
“Starting a new year doesn’t magically erase the financial challenges of the past, but it can help bring a fresh perspective to how you manage your money,” Alev explains.
If you plan to make financial resolutions for 2025, experts suggest starting by assessing your current financial situation. Then, set clear, realistic goals that fit your lifestyle.
Here are some expert tips to guide you:
Rethink Your Relationship with Money
Take time to reflect on how you handle money. What’s working, what isn’t, and what could improve?
“This can be the year you change your relationship with money,” says Ashley Lapato, a personal finance educator at YNAB, a budgeting app.
If you think of money as a burden or feel shame about it, Lapato suggests shifting your mindset. Picture how you want your future to look — your 30s, your 40s — and consider how money can help you achieve that vision.
Forgiving yourself for past mistakes is also key, says Liz Young Thomas, head of SoFi Investment Strategy. It can give you the motivation to move forward with confidence.
Identify Your “Why”
Matt Watson, CEO of the financial tracking app Origin, stresses the importance of knowing the reason behind each financial goal.
“Connecting a financial goal to a bigger life goal makes it more motivating and increases your chances of sticking to it,” Watson explains.
Whether you’re saving for a home, paying off credit card debt, or planning a vacation, having a clear purpose can help you stay focused. Watson also recommends using tools like apps or spreadsheets to track your progress.
Make Budgeting a Priority
“After years of inflation, pay raises may still not match rising costs, leaving many wondering where their money is going,” says Greg McBride, chief financial analyst at Bankrate.
McBride suggests creating a monthly budget for 2025 and tracking your spending throughout the year. Adjustments may be necessary as expenses change, so be prepared to cut back in some areas if needed.
“Whenever you spend less than you budgeted, transfer the difference into a savings account, ideally one with a high interest rate,” he advises.
Tackle Debt
“Interest rates aren’t likely to drop quickly, so paying down high-interest debt, like credit card balances, should be a top priority,” says McBride.
Start by assessing how much debt you have now compared to the beginning of the year. If you’ve made progress, great! If not, create a strategy, including exploring options like 0% balance transfer offers.
Lower Your Credit Card Interest Rate
“You have more control over credit card interest rates than you think,” says Matt Schulz, chief credit analyst at LendingTree.
Consider applying for a 0% balance transfer card or a low-interest personal loan. You can also call your credit card company to ask for a lower interest rate — many people who tried this in 2024 succeeded, with an average rate reduction of over six percentage points.
Set Practical Goals
“Financial resolutions should be realistic and manageable,” says Alev.
Instead of aiming to save thousands by year’s end, start small — like saving $20 from each paycheck. This approach makes it easier to stay on track, even if unexpected expenses arise.
When setbacks happen, avoid guilt and refocus on your goals.
Stay Informed About Your Finances
“You can’t manage what you don’t monitor,” says Rikard Bandebo, chief economist at VantageScore.
Commit to checking your credit score monthly in 2025. Pay more than the minimum on credit accounts, and for student loan borrowers, ensure payments are made on time to avoid damaging your credit score.
Automate Your Savings
Automating savings can make a big difference. Consider increasing 401(k) contributions, setting up direct deposits into savings accounts, or arranging monthly transfers to retirement or college savings plans.
Protect Yourself from Scams
Financial resolutions should also include protecting your money. “Slow down before making decisions,” says Johan Gerber, executive vice president of security solutions at Mastercard.
Scammers rely on urgency to trick people. Take time to verify and consult others before acting.
Prioritize Financial Wellness
Financial goals aren’t just about numbers — they’re about improving well-being. “Your mental health and money are connected,” says Alejandra Rojas, founder of The Money Mindset Hub.
To focus on financial wellness, address financial stress or trauma, and have open conversations about money with loved ones.
By setting thoughtful goals and staying consistent, 2025 can be the year you take control of your finances and improve your relationship with money.
