New Year, New Me? How To Make Financial Resolutions You Can Actually Stick To In 2025 | Global News Avenue

When it comes to your finances, you don’t need to wait until the beginning of the year to start reducing debt or saving for retirement, but for many people, the new year represents an opportunity for a fresh start.

According to a recent Fidelity survey, the most popular financial resolutions Americans will make in 2025 include saving more (43%), paying down debt (37%) and spending less (31%).

In a separate study, Allianz found that Americans make financial stability part of their New Year’s resolutions.

If you’re looking to improve your personal finances this year, you probably need an effective plan. Here are some ways you can improve your chances of hitting your financial goals in the new year, experts say.

Review your finances in light of your life circumstances

The end of the year is a good time to review your financial situation and consider adjustments you need to make in light of major events that may have occurred or are expected to occur in the near future.

“Think about how your life has changed over the past year,” said Boaz Lahovitsky, head of personal advisory at J.P. Morgan. “For example, if you recently got married or started a family, you might have some new plans for 2025,” he adds. “Your life and priorities will naturally change over time. The new year can be a good time to review and adjust your goals as needed.”

Link resolutions to short- and long-term goals

Goals can be short-term, like paying off credit card debt, or long-term, like saving for retirement.

In the Fidelity survey, most Americans determined to save had short-term goals, such as building a emergency fund— but it’s also important to think about long-term goals (what you hope to achieve in the next two to ten years).

To create a financial solution, Kevin Coombs, principal financial planner at Donaldson Capital Management, recommends developing a financial solution based on where you are in life.

For example, those who wish to retire early may draft a plan for when they will receive their pension social Security and how they will handle long term care costs. In contrast, those further away from retirement may focus on increasing their retirement savings rate or gaining employer support 401(k) Contest.

Be specific and track progress

While New Year’s resolutions are easy to make, people have a hard time sticking to them. Therefore, Lahowiecki recommends that people be specific about what their goals are and how they plan to achieve them.

“Consider setting ‘smart’ goals. These goals are specific, measurable, achievable, relevant and time-bound,” says Rachowitzki. “Instead of saying you want to ‘invest more’ or ‘plan a big trip’ in the new year, take the time to be specific and outline how much money you want to allocate to that goal and when.” Remember to base it on these Specific markers track your progress at regular intervals.

Knowing where you stand compared to your goals can also help you realize how far you’ve come, thus increasing your motivation.

“It’s difficult to sacrifice short-term gratifying expenditures for more valuable long-term benefits,” says Lachowitzki. “Celebrating small wins in achieving long-term goals can boost motivation and help combat the psychological effects of delayed gratification. ”

Keep it simple and get help

When you start a new year, it’s easy to set the bar very high and then lose track. One way to improve your chances of success with financial solutions is to have a realistic and simple plan.

To make things easier, Combs is keen on automating savings into a retirement or savings account. high yield savings account. “When you’re excited, it’s easy to take action and then that action pays dividends for the rest of the year,” he said.

If you’re the type of person who finds your motivation wanes after a few months, he recommends digging deeper to understand your motivations and even seeking help from others.

“Tie it (your goal) to a strong, intrinsic, heartfelt desire…Don’t set a goal just because you feel you should, out of obligation or social pressure,” Koum Si said. “Research shows that sharing your goals with others and writing them down often increases your commitment to them.”