As 2024 draws to a close, many reflect on their financial goals for the coming year. Whether saving for a major life milestone, tackling debt, or improving financial habits, experts stress the importance of setting realistic, actionable resolutions to make progress in 2025. Here’s a guide to setting and achieving your financial goals in the new year.
Change Your Mindset About Money
Ashley Lapato, a personal finance educator, emphasizes shifting your perspective on money. Instead of seeing finances as a burden, view them as a means to achieve your desired lifestyle. Asking questions like, “What do my 30s or 40s look like?” can help align your financial goals with your broader life ambitions.
Start With Your “Why”
Matt Watson, CEO of Origin, advises tying financial goals to life aspirations, such as buying a home or planning a vacation. This connection makes goals more motivating. Tools like budgeting apps or spreadsheets can help track progress.
Create and Stick to a Budget
Greg McBride of Bankrate highlights the importance of budgeting in a time of rising costs. Tracking monthly spending and reallocating savings into a high-yield savings account can make a significant difference. Adjustments may be necessary as expenses fluctuate, so flexibility is key.
Focus on Debt Management
Interest rates remain high, making it crucial to address outstanding debts. McBride suggests starting with high-cost credit card debt and exploring 0% balance transfer cards. Matt Schulz of LendingTree notes that many successfully negotiated lower credit card interest rates in 2024, often reducing them by six percentage points.
Set Realistic, Sustainable Goals
Courtney Alev of Credit Karma reminds us that financial progress is a marathon, not a sprint. Start small, such as saving $20 from each paycheck, and gradually increase over time. When setbacks occur, focus on getting back on track without guilt.
Automate and Monitor Finances
Automating savings and investments can streamline progress. Options include increasing 401(k) contributions, setting up direct deposits to savings accounts, and scheduling transfers to IRAs or 529 college savings plans. Regularly checking your credit score is another effective way to stay informed and manage debt effectively.
Protect Yourself From Scams
Johan Gerber of Mastercard advises slowing down financial decisions to avoid scams. Build an accountability system with family members and carefully evaluate any offers or urgent requests.
Prioritize Financial Wellness
Alejandra Rojas, founder of The Money Mindset Hub, stresses the connection between mental health and finances. Addressing financial trauma and discussing money with loved ones can improve overall financial well-being.
By setting achievable goals, automating savings, and focusing on financial wellness, you can make meaningful strides in 2025. Whether it’s tackling debt, saving for the future, or improving your relationship with money, these expert tips can help you start the new year with confidence and clarity.
