Our Top Three Financial Resolutions for 2025 to Keep Your Financial Plan on Track

As 2025 arrives, nearly two-thirds of Americans are making financial stability a top priority, according to an annual financial resolutions study from Fidelity Investments.¹ According to the study, the dominant sentiment among Americans is to prepare for unexpected financial events in 2025. Many said that inflation and its impact on day-to-day expenses played a role in their thinking.

In the survey of 3,000 adults, Americans’ top three financial resolutions for 2025 are to save more money, pay down debt and curb spending. A substantial majority of respondents (79%) are focused on increasing their emergency savings while 32% were focused on having enough savings to retire as planned.

Like any resolution, these goals will require some discipline and maybe a little help to achieve them. Aiming high is important, but focusing on a few manageable steps toward a concrete goal is more likely to get you where you want to go. It is best to create a detailed list of tasks that are simple and achievable. It’s also important not to lose sight of your long-term goals such as retirement income and estate planning.

Importantly, three out of four respondents (72%) say they are preparing with a financial plan. This stands to reason since 80% believe having a financial plan can better help them deal with the unexpected, and 78% claim such a plan has helped them practice mindful spending and saving habits.

Whatever your long-term financial goals are, you will likely need to include a savings plan. It’s one thing to plan to save, it’s quite another to act on it. Here are some good resolutions that we believe will assist you in 2025:

1. Make saving money a top priority

One of the best ways to counter bad spending habits is to think ‘savings first’ when budgeting. By setting measurable goals, you will be far more likely to stay on track. Beyond saying you’d like to save more, think in terms of tangible goals such as putting an extra 2 percent into your IRA or company retirement plan. Or challenge yourself to put an extra $100 per pay period into your emergency reserve fund. Automating your contributions can also help you avoid skipping a payment. Having extra savings in a high-yield savings account or Certificates of Deposit (CDs) will increase returns on your cash, with a goal of establishing a fund that covers six to twelve months of living expenses.

2. Boost your retirement savings

Saving for retirement is a key component of any long-term financial plan. According to Bankrate, one in five Americans regret not saving early enough for retirement.² If you work in a company that has a plan, make sure that you are maxing out your contribution up to the company match. If you have your own personal retirement plan, such as a Roth IRA, add to your current contribution even if you can’t get to the allowed maximum immediately. Keep in mind, your retirement savings are meant to provide retirement income to maintain your desired lifestyle. Be sure your savings plan matches those goals (travel, new home, etc.).

3. Pay down debt

In addition to emergency savings and stepping up your retirement plan, paying down debt should be a key focus, especially high-interest debt like credit card balances. You may not be able to get rid of it all at once, but allocating a certain amount every month will put you on the path toward paying it down. It starts with identifying your regular spending habits and finding areas where you can make adjustments.

Conclusion

No matter your age or life stage, having financial resolutions to start the year is a meaningful step toward boosting your financial and mental wellness. According to Bankrate’s 2024 money and mental health survey, money issues have an impact on the mental health of a majority of respondents.³ Some of the primary causes going into 2025 include inflation (65 percent) and rising interest rates (28 percent).

Even so, many Americans are feeling a renewed sense of optimism heading into the new year. According to Bankrate’s study, 68% feel they are in the same or a better situation than 2024. Among those in Fidelity’s study who say they were able to successfully keep their financial resolution in 2024, they listed creating a financial goal that was clear and specific (28%) as their top reason. Other primary reasons included being realistic and easy to maintain over the long term (27%), and the fact that it felt good to make progress, so they stuck with it (27%).

If you would like to discuss some of your resolutions for the coming year, we would love to hear from you. We’re looking forward to the year ahead.

Thanks for reading.

¹ https://newsroom.fidelity.com/pressreleases/fidelity-s-16th-annual-resolutions-study--americans-gearing-up-for-unexpected-financial-events-in-20/s/5613c543-fa52-4539-a690-a9d833773754

² https://www.bankrate.com/banking/top-financial-new-years-resolutions/

³ https://www.bankrate.com/loans/personal-loans/money-and-mental-health-survey/#nearly-2-in-3-people