NEW YORK — Whether you’re saving to move out of your parents’ home or aiming to pay off student loans, setting financial goals can keep you on track, says Courtney Alev, a consumer advocate at Credit Karma.

“Starting a new year doesn’t erase the financial struggles of the past, but it can provide a clean slate to approach money matters differently,” Alev explains. If you’re planning to set financial goals for 2025, experts suggest starting with a clear understanding of where your finances stood in 2024. Then, create specific, achievable goals that suit your lifestyle.

Here are expert tips to guide you:

Rethink Your Relationship with Money

Take some time to reflect on how you currently handle money—what works, what doesn’t, and where improvements are needed.

“Let this be the year you transform your relationship with money,” says Ashley Lapato, a personal finance educator at YNAB, a budgeting app.

If money feels like a burden, or if you carry guilt or feel inherently bad at managing it, it’s time to shift that perspective, Lapato advises. She suggests using money goals to envision your future lifestyle. Ask yourself, “What do I want my 30s or 40s to look like?” and think of money as a tool to help you get there.

Liz Young Thomas, head of SoFi Investment Strategy, emphasizes the importance of forgiving yourself for past mistakes so you can move forward with motivation.

Understand Your “Why”

When setting financial goals, identify the deeper reason behind each one, advises Matt Watson, CEO of Origin, a financial tracking app.

“Connecting a financial goal to a bigger life goal makes it more motivating and increases the likelihood of success,” Watson says.

Whether you’re saving to buy a home, pay off debt, or fund a vacation, being clear about your “why” can help keep you focused. Watson also recommends using tools like apps or spreadsheets to monitor your progress.

Create and Stick to a Budget

“After several years of inflation, many people find their income hasn’t kept pace with rising expenses,” says Greg McBride, chief financial analyst at Bankrate. “Make a 2025 budget and track your spending each month.”

Adjust your budget as necessary throughout the year to account for rising costs, which may require cutting back in some areas. McBride suggests transferring any money left over at the end of the month into a high-yield savings account.

Focus on Reducing Debt

Interest rates are likely to stay high, so paying off debt, especially high-interest credit card debt, should be a priority, McBride advises.

Start by assessing your current debt compared to the start of the year. If you haven’t made progress, create a plan to get back on track. Options like 0% balance transfer credit cards can be helpful tools.

Take Control of Credit Card Interest Rates

“You have more influence over credit card interest rates than you might think,” says Matt Schulz, chief credit analyst at LendingTree.

Schulz suggests asking for a lower interest rate, as many people who did so in 2024 succeeded, with average reductions of over six percentage points. Other options include balance transfer credit cards or low-interest personal loans.

Set Realistic, Sustainable Goals

When setting financial goals, ensure they’re manageable and practical for your lifestyle, Alev advises.

“Think of it as a marathon, not a sprint,” Alev says.

For instance, instead of aiming to save thousands of dollars by year’s end, start with smaller, consistent steps like saving $20 per paycheck.

Even with realistic goals, life can throw unexpected challenges your way, such as medical bills or emergencies. When setbacks happen, don’t be discouraged. Focus on getting back on track without guilt.

By following these steps, you can make meaningful progress toward your financial goals in 2025.