As 2024 draws to a close, many individuals are reflecting on their financial goals for the upcoming year, the Associated Press reports.
Whether you’re planning to save for a big purchase, pay off debt, or simply take control of your finances, setting clear financial resolutions can help you stay motivated throughout 2025. Experts recommend starting the year by evaluating your current financial situation and setting attainable goals. Here are ten expert tips to help you improve your relationship with money in 2025.
1. Reframe Your Relationship with Money
One of the first steps in improving your finances is to change how you perceive money. Ashley Lapato, a personal finance educator at YNAB, suggests shifting from seeing money as a source of stress or shame to viewing it as a tool to achieve your desired lifestyle. Consider long-term goals and how money can help you reach them.
2. Know Your “Why”
To stay motivated, Matt Watson, CEO of financial app Origin, recommends linking each financial goal to a larger life aspiration. Whether saving for a home or paying off debt, understanding the deeper purpose behind your financial resolutions can keep you focused throughout the year.
3. Create a Budget and Stick to It
Tracking your spending is crucial for managing your finances effectively. Greg McBride, chief financial analyst at Bankrate, advises creating a monthly budget and regularly monitoring your expenses. Adjustments may be necessary if costs rise, but aim to transfer any extra savings into a high-yield savings account.
4. Tackle Debt with Urgency
With high interest rates expected to persist, it’s important to prioritize paying down debt. McBride suggests assessing your current debt load and creating a plan to reduce it. Consider utilizing 0% balance transfer offers to alleviate the burden of high-interest credit card debt.
5. Take Control of Your Credit Card Interest Rates
Matt Schulz, chief credit analyst at LendingTree, points out that you may have more control over your credit card interest rates than you think. Call your credit card issuer to request a lower rate, and consider using a balance transfer credit card or a low-interest loan to reduce costs.
6. Set Realistic, Achievable Goals
When planning your financial resolutions, it’s important to set practical goals that align with your lifestyle. Courtney Alev, consumer advocate for Credit Karma, recommends starting small. For example, instead of aiming to save thousands in one year, begin by setting aside a manageable amount each paycheck.
7. Stay on Top of Your Credit
Regularly monitoring your credit score is an essential part of financial management. Rikard Bandebo, chief economist at VantageScore, advises checking your score monthly and paying more than the minimum on credit card balances. Timely payments on student loans are also crucial, as missed payments will be reported in January.
8. Automate Savings
Automating your savings can simplify the process of building wealth. Set up direct deposits into savings accounts or retirement funds, and consider automating transfers into a college savings plan. Greg McBride recommends these small, consistent actions to help you save without thinking about it.
9. Protect Your Finances from Scams
Financial scams are a common concern, and Johan Gerber from Mastercard advises taking time before making financial decisions to avoid falling for fraudulent schemes. Build an accountability system with family and friends to ensure that your financial choices are well-considered and safe.
10. Focus on Financial Wellness
In 2025, financial goals shouldn’t only be about accumulating wealth. Alejandra Rojas, founder of The Money Mindset Hub, emphasizes the importance of financial wellness. Address financial stress and trauma, and make it a goal to have open conversations about money with loved ones to promote a healthy financial mindset.
