The 2025 New Year’s Eve numerals are displayed in Times Square, on Dec. 18, 2024, in New York.
As the end of 2024 approaches, it’s a great time to reflect on financial goals for the upcoming year!
Whether the goal is to save for moving out of the family home, paying off student loan debt, or another financial milestone, setting clear resolutions can provide motivation, according to Courtney Alev, consumer advocate for Credit Karma. “Entering a new year doesn’t erase all financial challenges from the prior year,” Alev explained. “But it can really help to bring a fresh-start mentality to managing finances.”
For those planning financial resolutions for 2025, experts recommend starting by evaluating the financial state of 2024. Setting specific, realistic goals tailored to individual lifestyles is key.
1. Change the Relationship with Money
Consider current money habits — what works, what doesn’t, and what needs improvement. Ashley Lapato, a personal finance educator for YNAB, a budgeting app, advises viewing the new year as an opportunity to redefine financial attitudes. If money feels like a chore or there’s shame associated with it, it’s time to shift that mindset.
Liz Young Thomas, head of SoFi Investment Strategy, highlights the importance of forgiving past financial mistakes to move into 2025 with renewed motivation.
2. Know the “Why” Behind Financial Goals
Establishing a clear purpose for financial resolutions adds motivation, said Matt Watson, CEO of Origin, a financial tracking app.
Connecting financial goals to larger life aspirations, like buying a house, paying off debt, or planning a vacation, can make them more meaningful. Watson suggests using tools like apps, spreadsheets, or websites to track progress effectively.
3. Budget, Budget, Budget
After several years of inflation, many are still catching up with rising expenses. Greg McBride, chief financial analyst at Bankrate, recommends creating a monthly budget for 2025 and tracking spending against it.
Adjustments may be necessary throughout the year as expenses shift, but staying disciplined is critical. Any surplus from a month’s budget should go into savings, ideally a high-yield savings account, McBride added.
4. Pay Down Outstanding Debt
High interest rates are likely to persist in 2025, so tackling debt, especially high-cost credit card debt, remains essential. McBride advises reviewing how much debt has been paid off compared to the start of the year. If debt levels have increased, it’s time to create a game plan, such as exploring 0% balance transfer offers.
5. Take Control of Credit Card Interest Rates
Matt Schulz, chief credit analyst at LendingTree, says there’s often more control over credit card interest rates than expected.
A 0% balance transfer credit card or a low-interest personal loan can help. Schulz notes that calling the credit card company to request a lower interest rate is another effective strategy, with many successfully achieving reductions in 2024.
6. Set Realistic, Practical Goals
Credit Karma’s Alev emphasizes the importance of achievable financial resolutions. Rather than aiming to save large amounts in a short time, small steps, like saving $20 per paycheck, can be more sustainable. Unexpected events can sometimes derail plans, but staying flexible and avoiding guilt can help maintain long-term progress.
7. Stay Aware of Financial Health
Rikard Bandebo, chief economist at VantageScore, advises checking credit scores monthly in 2025. Paying more than the minimum on credit accounts and staying current on payments are vital for financial health. For student loan borrowers, making timely payments is critical, as missed payments will start affecting credit scores again in January.
8. Automate Savings
Automating contributions to workplace 401(k) plans, direct deposits into savings accounts, and monthly transfers into IRAs or 529 college savings accounts can make saving effortless, McBride suggested.
9. Slow Down to Avoid Scams
Johan Gerber, executive vice president of security solutions at Mastercard, stresses the importance of taking time before making financial decisions. Scammers often use urgency to pressure individuals, so slowing down and consulting trusted people can prevent costly mistakes.
10. Focus on Financial Wellness
Financial goals don’t always have to be tied to dollar amounts. They can also involve mental and emotional well-being.
Alejandra Rojas, personal finance expert and founder of The Money Mindset Hub, highlights the connection between finances and mental health. Addressing financial stress or trauma and fostering open conversations about money can contribute to overall wellness!
10 Expert Tips to Transform Your Relationship with Money in 2025
Video by Wealth Wagon
