2025 Financial Resolutions: How to Reset Your Finances for the New Year
Did you set financial goals for 2025 yet? Discover Personal Loans found that over half of U.S. consumers planned to make a financial resolution for the new year. If you haven’t set any money goals yet, don’t worry – experts say it’s never too late to start.
“The ideal time for a financial reset is usually at the beginning of the year,” said financial advisor Jordan Awoye. “You’re able to start fresh, assess your previous year’s finances, and start anew.” With the 2025 tax filing season starting on Jan. 27, it’s a good time to review your finances from last year and consider your priorities and goals for the upcoming year.
Saving more, earning more, spending less, improving credit scores, building an emergency fund, and paying off or consolidating debt are some popular resolutions. However, challenges like inflation, the economy, or unexpected expenses may hinder achieving these goals. A Morning Consult poll found that almost all respondents anticipate facing at least one challenge.
Don’t let external factors like the state of the economy or past financial mistakes hold you back. Certified financial planner Corbin Blackwell advises starting small, whether it’s saving or paying off debt gradually.
When determining your financial strategy, consider whether saving or investing is better for your goals. Ensure your asset allocation aligns with your timeframe and risk tolerance. Short-term goals may benefit from saving in cash-based assets like high-yield savings accounts or certificates of deposit, while long-term goals may warrant investing in diversified stock portfolios.
Take steps now to achieve your financial goals in 2025. Build a better budget, pay down high-interest debt, and focus on longer-term savings and investing. Setting the stage for financial success is crucial, so prioritize what you define as successful.