As the end of 2024 approaches, it’s time to reflect on your financial goals for 2025. Financial resolutions can help you stay motivated and make progress towards achieving your objectives.
Experts recommend starting by evaluating your current financial situation and setting specific, attainable goals. Here are ten tips from experts to help you change your relationship with money in 2025:
1. **Change your mindset**: View your financial goals as an opportunity to achieve a desired lifestyle. Ask yourself what you want your life to look like in the future.
2. **Know your “why”**: Attach your financial goal to a bigger life goal to make it more motivating and likely to be achieved.
3. **Create a budget**: Make a monthly budget for 2025 and track your spending against it throughout the year, adjusting as needed.
4. **Pay down debt**: Focus on high-cost credit card debt and consider 0% balance transfer offers or low-interest personal loans.
5. **Take control of credit card interest rates**: You have more power over credit card interest rates than you think. Consider a 0% balance transfer credit card or negotiating with your lender.
6. **Set realistic, practical goals**: Start small and make it easy to stick with your goals. For example, save $20 per paycheck instead of aiming for thousands by the end of the year.
7. **Monitor your credit score**: Set a resolution to check your credit score monthly in 2025 and pay more than the minimum on your credit accounts.
8. **Automate savings**: Increase workplace 401(k) plan contributions, set up direct deposits into dedicated savings accounts, and arrange for monthly transfers into an IRA or 529 college savings account.
9. **Prioritize financial wellness**: Focus on achieving financial wellness by addressing mental health with money and taking care of yourself.
10. **Stay accountable**: Build an accountability system with family to keep yourself and your loved ones secure from scams.
Remember, changing your relationship with money takes time and effort. By following these expert tips, you can make progress towards achieving your financial goals in 2025.
Source: https://apnews.com/article/financial-resolutions-new-year-e920220b3ccd104885f0a46751e500d1