NEW YORK – For many, financial resolutions are often just lighthearted chatter at holiday gatherings. But for Cynthia Luna, they’re a serious commitment.
The financial planner from Waxahachie, Texas, sends all her clients New Year’s cards featuring their resolutions in black and white. If they stray, they’ll hear about it.
“The key is to take baby steps that are achievable and motivating—failure isn’t an option when it comes to financial resolutions,” says Luna, a principal at Moonshot Financial Group.
Starting the new year on the right foot is crucial, and according to a recent Fidelity Investments study, 65% of Americans are setting financial resolutions for 2025. The priorities are classic: save more money (43%), pay down debt (37%), and spend less (31%).
Interestingly, for the first time in Fidelity’s 16-year survey history, more people are leaning towards short-term savings goals over long-term ones, 55% to 45%. This suggests a shift in focus from future ambitions to immediate necessities like rent, gas, utility bills, and food expenses.
“This will be a year for practical living,” says Rita Assaf, vice president of retirement products at Fidelity. “Short-term savings goals are a top priority; people are concerned about daily expenses.”
Millennials are leading the charge in setting financial resolutions, with 74% planning money goals for the New Year, compared to 70% of Gen Z, 67% of Gen X, and only 52% of Baby Boomers.
Crafting effective financial resolutions takes skill. Here are some expert tips to help ensure success:
GO SMALL
While the popular career advice is to “go big,” financial resolutions are better approached with small, manageable goals. Vague aspirations of becoming a multimillionaire can lead to disappointment and abandonment of goals.
Instead, focus on concrete, daily actions that will help you reach your target. “Limit yourself to a few clear goals,” says Thomas Scanlon, a financial advisor with Raymond James in Manchester, Connecticut. “If you can only contribute an extra $100 a month to your credit card, then do that.”
AUTOMATION IS KEY
Resolutions often depend on willpower, which can be unreliable. For example, if your goal is to resist shopping discounts, you may find it difficult to stay on track. In fact, 37% of people in the Fidelity survey admitted to abandoning their resolutions last year.
To mitigate this, automate processes that help you succeed. Automate your retirement contributions and bill payments, and automatically save a percentage of any raises you receive.
“I advocate for automation,” says W. Michael Lofley, a financial planner in Stuart, Florida. “The less you have to consciously think about it, the easier it is to stick to your financial resolutions. It’s a ‘set it and forget it’ approach.”
REVISIT AS NECESSARY
New Year’s resolutions are snapshots of your current goals, and it’s completely normal for priorities to change. There’s no shame in revisiting and adjusting your resolutions as needed.
“I recommend reviewing your goals quarterly or more frequently if that helps,” suggests Fidelity’s Assaf. “Life can change throughout the year, and it’s completely fine to revise your resolutions.
Reuters/Editing by Lauren Young and Diane Craft
