As the year comes to a close and the holiday hustle takes over, many of us start thinking about our goals for the New Year. Whether your 2025 plans include preparing to buy a new home, saving more money for your current one, or improving your financial situation, we could all use some easy and practical tips to help us succeed. While the season’s sugary treats might dominate our focus, here are a few simple strategies you can use—and even share during those holiday gatherings—no matter where you are on your financial journey.
Test Your Budget with a Trial Run
Thinking about buying a home or car? A great way to determine if you can afford the new payment is to simulate it. Set up an automatic transfer that moves the amount of your expected payment difference into a separate savings account every payday. This will help you adjust to the payment schedule and identify any areas where you may need to tweak your budget.
Schedule Financial Check-Ins
Reserve 30 minutes each week to review your finances. Choose a time that works for you, like Wednesday mornings before your coffee or Sunday evenings as the weekend winds down. Add specific tasks to your calendar notes, such as “Check credit card balances,” “Plan weekly meals,” or “Transfer money to savings.” Use this time to learn about financial tools and services that could help you stay on track.
Stick to Cash for Spending
Using cash instead of tapping, swiping, or clicking for payments can help you stay within your budget. Withdraw your spending money at an ATM, and when it’s gone, it’s gone. For couples, using cash can also reduce disagreements since each person has their own set amount to spend.
Keep an Eye on the 10-Year Treasury Rate
The 10-Year Treasury yield (US10Y) influences mortgage rates. If you’re considering refinancing, compare your current rate to where the 10-Year Treasury was when you took out your loan. A drop of at least 0.5% may indicate it’s a good time to refinance.
Manage Credit Card Usage Wisely
To improve your credit score, use your credit cards but avoid maxing them out. Calculate your credit utilization by dividing your card balance by your credit limit. Aim to keep this ratio below 50% by the end of each billing cycle to maintain a healthy credit score.
Accelerate Debt Payoff
Want to pay off loans faster without paying extra fees for biweekly plans? Use this simple formula: multiply your monthly payment by 13, then divide by 12. Make this slightly higher payment each month to shave years off your loan term and save thousands in interest on mortgages, car loans, or student loans.
Use Email Reminders for Goals
Take advantage of your email’s “delay send” feature to set reminders for yourself. Send future emails about saving for vacations, staying within budget, or applying the tips above. These reminders can keep you motivated, especially when the enthusiasm for New Year’s resolutions starts to fade.
Focus on Action Over Predictions
This article is about actionable steps, not financial forecasts. Real estate and economic trends can be unpredictable, as we saw with housing prices during COVID-19. Regardless of external factors, the best thing you can do is create a personal plan and take consistent steps toward your goals.
Whether your financial objectives are related to homeownership, savings, or other aspirations, these strategies can help you move closer to success. Take action, stay positive, and remember that even small steps forward are progress. Be merry, be bright, and embrace the journey toward achieving your goals in 2025.
