The new year is the perfect time to make new moves, whether it’s taking care of your health, making lifestyle changes, or even planning your finances. Setting specific goals, whether it’s to save more, pay off debt, or start investing, can help you take better control of your finances. Here are 20 practical, achievable goals to help you become financially stronger this year.
20 New Year’s Resolutions 2025 Financial Goals
1. Create or update your budget.
Still don’t have a budget? The new year is a great time to start, as a clear budget is the foundation of sound financial planning. Take the time to list your household income and monthly expenses, then talk to your family about ways to cut costs. If you already have a budget, adjust it to reflect what’s important to you right now.
2. Open the most suitable bank account.
Not all savings accounts are created equal, so it’s important to choose the right one for your specific purpose. For short-term needs, a regular savings account or variable interest rate savings account may be your best option. But for long-term goals, consider an Individual Retirement Account (IRA), which offers tax-deferred growth. Using different bank accounts for different goals can help you stay organized and track your progress more easily.
3. Create an emergency fund
Life is uncertain. Unforeseen events can happen, such as car breakdowns, medical expenses, or job losses. Keeping 3-6 months of your regular expenses in a high-yield savings account can help you prepare for emergencies.
4. Automatically save money
Take the guesswork out of saving! Consider setting up automatic transfers from your checking account to your savings account each time you get your paycheck. This will make saving a habit that’s inevitable — no more excuses. There are also tools like Academy Bank’s Saving Cents program that make saving even easier. Simply round up your purchases with your debit card and transfer the remaining amount to your savings account.
5. Check and improve your credit score
Your credit score is like your financial report, so check it regularly! Start by checking your credit report for common errors that can harm your score. Then, pay off existing debts and keep your credit utilization ratio below 30% to boost your score. Finally, pay your bills on time! This is the easiest and most effective way to boost your credit score.
6. Pay off all credit card debt .
High-interest debt is an obstacle to saving money. It is important to pay off credit card debt as soon as possible, using one of two methods: the Snowball Method, which starts with the smallest debts first, or the Avalanche Method, which focuses on paying off the debts with the highest interest rates first.
7. Avoid incurring new debt.
Whenever possible, try to pay for things with cash or savings instead of taking on new debt. Ask yourself, “Do I really need this, or can I save up to buy it instead?” If you need to borrow money, carefully consider the terms and interest rates to minimize your financial burden in the long run.
8. Cancel unnecessary subscriptions.
Streaming services, gym memberships, magazines you never read – the bulk of your monthly bills come from services we barely use! In fact, the average family spends over $32 a month on subscriptions they don’t use! Take a look at your recurring subscriptions and cancel the ones that don’t add value to your life – a $20 a month gym membership you never use isn’t helping anyone.
9. Set a monthly spending limit.
Try setting a spending limit each month. This is a simple way to take control of your finances. You’ll build good habits and feel more empowered with your money. Plus, these extra savings can help you reach bigger goals, like buying a new car or saving for your child’s education. Starting small like this can make a big difference.
10. Reduce unnecessary expenses in daily life.
Making your own coffee at home or packing your own lunch may seem like small things, but these simple habits can save you hundreds, if not thousands, each year. You can put the extra money aside for emergencies, pay off debts like student loans, or fund a family trip or whatever else you’ve been dreaming of. We recommend using a lunch savings calculator to see how much you could save.
11. Shop with purpose.
Impulse purchases, such as those that look interesting at a local store, can quickly drain your savings. Try making a shopping list and waiting 24 hours to think about them before making unnecessary purchases. This is an easy way to control your spending and avoid unnecessary purchases.
12. Check your insurance coverage.
Review your health, home and life insurance plans to make sure you have the coverage you need. Major life events like moving, starting a new https://ufabet999.app job or starting a family may be a sign that it’s time to change your coverage. The right insurance can give you peace of mind and protect you from the unexpected. If you like crunching numbers, try our insurance calculator to find the best solution for you.
13. Check annual tax deductions.
As the new year begins, it’s a good idea to review your tax deductions. Life changes can affect the amount of tax withheld from your paycheck. Making adjustments at the beginning of the year can help you avoid overpaying or underpaying taxes, allowing you to keep more of your hard-earned money. It can also help you avoid surprises when tax filing season arrives.
14. Start investing
Investing is a great New Year’s resolution to help you take control of your financial future. There are many ways to invest, each with different growth potential. Start by setting a budget, choosing an investment platform or advisor, and exploring options that align with your goals and comfort levels.
15. Diversify your investments.
Don’t put all your eggs in one basket. Diversify your investments across a variety of assets such as fixed deposits, stocks, bonds and real estate to reduce risk and increase returns in the long run. If you’d like to learn more about diversification, check out our recent article: Investing Basics: Diversification and Why It Matters.
16. Learn about personal finance.
The saying “knowledge is power” is true, especially when it comes to money. As you understand more about personal finance, you will be able to manage your money more effectively. You can start by reading books, attending workshops or listening to finance podcasts. Also, be sure to check out your bank’s free financial education website and money blogs.
17. Track your net worth.
Your net worth is like a score in a game, telling you whether you’re winning or losing financially. Calculating your net worth is as simple as subtracting your total assets from your total liabilities. Or, if you want a faster method, you can use our net worth calculator.
18. Teach your children about money.
Do you want your child to develop good money habits? Try talking to your child about money planning, saving, and spending. Help your child understand the value of money and learn how to spend it wisely. Start teaching your child from a young age because the benefits will follow in the future.
19. Set financial goals.
Dreaming of backpacking around Europe or retiring in your 50s? Write down your financial goals, whether they’re short-term, medium-term or long-term. Being clear about what you want will help you stay focused and avoid getting lost.
20. Plan for retirement.
Add money to your retirement account or start building your own retirement fund. Starting early will help your money grow more. Remember, planning for retirement is not something you can do until later in the day. To avoid worries later, we recommend that you try our retirement savings calculator to help you plan and calculate your savings goals.