With 2025 now underway, many are revisiting their financial goals for the year. Whether you’re saving to move out of your parents' house, tackling student loan debt, or planning for a major milestone, setting financial resolutions can be a powerful way to stay focused and motivated.
"A new year doesn’t erase all the financial challenges from the previous year," said Courtney Alev, consumer advocate for Credit Karma. "But it does provide an opportunity to embrace a fresh-start mentality in managing your finances."
Experts recommend beginning with a review of your 2024 financial standing. Once you have a clear picture, set specific, achievable goals that align with your lifestyle. Here are some expert tips to guide you:
Take time to assess how you manage money – what’s working, what’s not and what could improve.
"Let 2025 be the year you transform your relationship with money," said Ashley Lapato, personal finance educator at YNAB, a budgeting app.
If managing money feels like a burden or there’s a shame surrounding it, Lapato encourages shifting your mindset. Instead of viewing financial goals as obligations, consider them opportunities to envision your future lifestyle. Ask yourself questions like, "What do my 30s or 40s look like?" and use your financial strategy to bring that vision to life.
"Forgiveness for past mistakes is essential to maintain motivation," said Liz Young Thomas, head of SoFi Investment Strategy.
When setting goals, identify the "why" behind each resolution. "If your financial goal aligns with a broader life aspiration, you’re more likely to stay committed," said Matt Watson, CEO of Origin, a financial tracking app. For instance, saving for a home or a summer vacation becomes more motivating when tied to clear objectives. Using tools like budgeting apps, spreadsheets, or financial tracking websites can help.
Greg McBride, chief financial analyst at Bankrate, emphasized the importance of budgeting.
"After years of inflation, pay raises may still lag behind rising expenses, leaving you wondering where your money is going," McBride said.
He advises creating a monthly budget for 2025 and tracking your spending against it. Adjustments may be necessary as certain expenses increase. Any savings from spending less than budgeted should be transferred to a high-yield savings account.
High-interest debt remains a challenge for many. McBride recommends creating a game plan to pay down credit card balances, starting with taking stock of your debt levels compared to last year. Tools like 0% balance transfer offers or low-interest personal loans can be effective.
"You have more control over credit card interest rates than you think," said Matt Schulz, chief credit analyst at LendingTree. Many people successfully negotiated lower rates in 2024, with average reductions exceeding 6 percentage points.
"It’s a marathon, not a sprint," said Credit Karma’s Alev, who suggests starting small. For example, saving $20 from each paycheck can be more sustainable than setting an overly ambitious target. If unexpected expenses arise, Alev recommends recalibrating your plan without guilt.
Rikard Bandebo, chief economist at VantageScore, advises making a resolution to check your credit score monthly. He also suggests paying more than the minimum on credit accounts to improve your credit score. Automated strategies like increasing 401(k) contributions, setting direct deposits for savings, and arranging monthly transfers to IRAs or college savings accounts can build wealth over time.
Protecting your finances from fraud is as important as managing them. Johan Gerber, executive vice president of security solutions at Mastercard, advises slowing down when faced with financial decisions. Scammers often exploit urgency to deceive victims. Establishing an accountability system with the family can help safeguard against fraud.
Finances are deeply connected to mental health.
"Your financial wellness should be a top resolution," said Alejandra Rojas, founder of The Money Mindset Hub. This might include addressing financial trauma or discussing money more openly with loved ones. Setting one or two goals around your relationship with money can make a significant impact.
By focusing on realistic, actionable goals and maintaining a positive outlook, you can set the stage for a financially healthy and fulfilling 2025.
