
New Year’s Financial Resolutions
With the New Year rapidly approaching, many take this time to reexamine and reprioritize every aspect of their life, including their finances. The end of the year is a great time to reflect on everything you’re doing right and how you’d like to improve. Many of us make New Year’s resolutions, vowing to change our behavior for the better. If you start meaningful financial habits, you will be one step closer to achieving financial health. If you’re looking to improve your finances, add these New Year’s financial resolutions to your list.
LESSON CONTENTS
Create a Budget
Creating and maintaining a budget is one of the best ways to reach your financial goals. Regardless of your financial situation, you can use this method to track your spending and save for the future. A budget can help you to get out of debt, build your nest egg or save for one of life's most important purchases, such as a new home or wedding.
To get started, add up all your income for the month, including your regular paycheck, any interest accrued on your savings, as well as earnings from odd jobs or your side hustle. If you are a freelancer with unpredictable income, add up your total earnings for the year and divide that number by 12.
Next, deduct all your regular expenses from your monthly earnings, including rent or your mortgage, transportation, car payment, healthcare, insurance, student loans, food, utilities, as well as any automatic deductions for subscriptions or other fees. See how much money you have leftover.
Now it’s time to start organizing your spending. You can use the 50-30-20 model, which means spending 50% of your earnings on your needs, including food and housing, 30% on your wants, such as entertainment or eating out, and 20% on paying off your debts or saving for the future.
These percentages are not set in stone; they are simply recommendations, so feel free to adjust them as necessary or in a way that is better suited for your goals or situation. If you are saving for a vacation or one-time purchase, put aside additional money every month to work towards that goal.
If you don’t feel like adding up every item by hand, use a tool like Ent’s Money Insight to automatically track your spending. Continue monitoring your habits over time to stay on track.
Save for Retirement
If you haven’t started saving for retirement, now is the time to get started. Many Americans don’t have enough money saved for retirement, which could lead to working later in life or reduced spending in retirement. Start coming up with a plan for your golden years, including how long you plan to keep working and how much you will need to maintain your current lifestyle. Use a Retirement Planner Calculator or contact a financial advisor that will help account for factors that you might otherwise miss, such as inflation, market volatility and medical expenses.
There are several ways to create a retirement plan. If you have access to an employer-sponsored 401(k) through your job, see how much you are stashing away for retirement every month. You may need to supplement your savings depending on how much you will need for retirement.
If you don’t have access to a 401(k) or would like to save additional money for retirement, consider opening a traditional individual retirement account (IRA) or Roth IRA. Both types of accounts come with certain tax advantages. Learn more about the benefits of putting your money in an IRA.
Prepare for the Unexpected
You never know when life might take an unexpected turn, so it’s important to create an emergency fund. Experts recommend having anywhere from three to six months’ worth of living expenses available in the instance that you are out of work or have a medical emergency.
Put some money aside every month for the unexpected. Consider how much money you will need to pay medical deductibles or other emergencies and take steps to limit your risk.
It may seem like a daunting task to build an emergency fund large enough to cover six months of expenses, but it’s important to remember to start small and set goals and milestones. Start saving a little each month, even if it’s only $10, and set smaller goals like saving enough to cover your monthly grocery bill. Once you hit that milestone you can work towards saving for your rent or mortgage, before saving for multiple months’ worth of expenses.
Work Towards Becoming Debt-Free
If you are still carrying around debt from a credit card or your student loans, paying off that debt is probably one of your top financial priorities. Carrying this debt may inhibit your ability to buy a home, car or save for retirement.
To manage your debt, start by taking stock of all your existing debts and how much you owe every month. Try to pay off any interest you accrue every month to avoid paying compound interest and having your debt grow. Paying more than the minimum can help pay the debt off faster by chipping away at the principal balance. Try the avalanche method, which involves paying off the debt that has the highest interest rate first, that way you’ll save money on interest payments in the long run.
Diversify Your Portfolio
It’s best to reevaluate your investment portfolio at least once a year to make sure your holdings match your needs, risk tolerance and long-term goals. Consider diversifying your portfolio by using investment products such as mutual funds and exchange-traded funds (EFTs) to reduce your risk. Use tax-advantaged accounts where appropriate for tax efficiency and to help save for retirement.
Meet with a financial advisor to help you learn about how different investment options can help you toward your financial goals.
Double Check Your Insurance
Start off the new year by making sure you have adequate health coverage with an affordable deductible to limit how much you will have to pay out-of-pocket.
Consider applying for life insurance sooner rather than later to lock in a low monthly rate if you have loved ones or dependents, or debt like student loans or a mortgage that you don’t want to leave behind. The older you become, the higher the monthly premium.
It may also be prudent to consider disability insurance to make sure you have income if you can no longer perform the essential duties of your job. Your employer may offer group disability coverage for a low monthly premium, or you can look at private disability insurance that remains in-force if you leave your employer.
Update your home and auto insurance to make sure you have enough coverage in an emergency. Consider using a broker to shop around for the best rate before your next renewal or consult with an insurance advisor that can help you find the right policies based on your needs.
As we celebrate the new year with optimism, take a few moments to think about your finances. What small changes can you implement now that will have tremendous and long-lasting impacts. Incorporate these New Year’s financial resolutions into your monthly routine to make the most of your hard-earned money.
PLEASE NOTE: The information provided is for educational purposes only and should not be considered recommendations or advice. Please consult the appropriate financial, tax or legal professional to determine whether the strategies presented in this article are appropriate for your situation.
Related Resources
View AllHow to Budget as a College Student
Every semester delivers the same double punch: a tuition bill larger than last term and a flood of incidental costs — textbooks, lab fees, late-night pizzas — that evaporate paychecks and loan disbursements at dizzying speed. The average college student spends $38,270 per year on tuition, books, supplies, and daily living expenses. In a private campus, that bill rises to $58,628 (Hanson, 2025). When numbers grow that large, hoping for the best is not a plan; a written budget is. This guide offers a practical roadmap for how to budget as a college student—from mapping cash flows, choosing tracking tools, and cutting expenses without trimming the joy out of campus life.
How to Start Saving Money: Clever & Easy Steps
If you vowed this is the year you get ahead financially only to watch payday deposits disappear, you’re not alone. Gillespie (2025) notes that 59% of Americans still can’t cover a $1,000 emergency without borrowing or selling something. Meanwhile, the U.S. personal-saving rate is languishing below 4 percent—about half its long-term average (BEA, 2025). These sobering numbers explain why learning how to start saving is so critical. The encouraging news? A few clever ways to save money can transform vague intentions into steady progress.
How Can I Save Money? Here Are 10 Easy Tips
How can I save money? Picture your money as water flowing through a series of channels. Some streams nourish long-term goals, others evaporate into impulse buys, and a few leak through cracks you never noticed. Redirecting enough of that flow toward the bucket that matters most — savings for emergencies and retirement — guarantees long-term security. Savings protect your future. Yet the typical American household saves just 3.9 % of disposable income as of March 2025, roughly half the pre-pandemic norm (St. Louis Fed, 2025). The good news is that small, deliberate changes can double or triple that rate without feeling like deprivation.
Below, you’ll find proven, beginner-friendly money saving strategies you can start on today. By the end, you’ll have a clear map of ways to save money, from the daily latte decision to bigger moves like automating transfers or picking a side hustle.
Summer Vacation Ideas on a Budget
Rising airfares or tight budgets don’t have to cancel summer fun. A thoughtfully planned summer vacation on a budget can restore energy, create memories, and leave room in the checking account for next semester’s textbooks or an unexpected flat tire. Let’s nail down the numbers and map out low-cost destinations and close-to-home adventures. We also outline painless saving tricks and digital tools that track every dollar and make family summer vacation ideas on a budget a practical reality.
How to Become Financially Independent
Financial independence (FI) isn’t a distant fantasy reserved for trust-fund heirs or Silicon Valley founders. Instead, it’s a math-driven destination you can plot on a timeline — then march toward with deliberate choices every payday. In plain terms, financial independence means having the freedom and flexibility to make choices that align with your goals - without constantly worrying about money. It’s about feeling secure and confident in your day-to-day life and your future. In the next few minutes, you’ll learn the core habits, sequential steps, and digital tools that turn that definition into reality. By the end, you won’t just understand how to become financially independent; you’ll know which actions to take.
Can You Pay Rent with a Credit Card?
Can you pay rent with a credit card? Short answer: yes. Absolutely, but only if your landlord or a third-party processor will take the plastic and you are prepared to shoulder—or cleverly avoid—the fees. Roughly 22% of U.S. renters already put monthly housing costs on debit or credit cards, according to a 2024 payment-trends study by property-tech firm Zego (Salmonsen, 2024). That slice is growing because tenants want smoother cash flow and richer rewards, while landlords crave on-time payments. Still, every swipe passes through a maze of surcharges, interest rates, and utilization limits. Before you tap “Pay,” you need a plan to ensure you have a smart credit card management strategy in place.
Is it Wrong to Let Someone Use Your Credit Card?
When someone you trust — a spouse, adult child, sibling, or close friend — asks to use your credit card, the request feels innocent. Maybe it’s for groceries, a plane ticket, or an emergency car repair. But even with the best intentions, lending your credit card can end up with disastrous consequences. So, you might be asking, is it wrong to let someone use my credit card?
The short answer: Yes, it can be wrong — legally, financially, and ethically — depending on the circumstances. Even if you trust the person, the risks often outweigh the convenience. Below, we unpack the hazards, the narrow circumstances when sharing your credit card can work, and safer alternatives that protect you.
Improving Your Debt-to-Income Ratio
In Q3 2024, Americans spent 11.3% of their disposable income on household debt payments (St. Louis Fed, 2024). Still, some households suffer massive debts, using over 50% of income to service debt. When your debt payments consume too much of your monthly income, lenders view you as a riskier borrower. This results in unfavorable loan terms, higher interest rates, or loan denials.
Understanding how to improve your debt-to-income ratio helps you qualify for better financing options. In simple terms, your debt-to-income ratio (DTI) computes the percentage of your income that goes toward paying debts each month. In this article, we’ll explain how to compute your DTI ratio, what is a good debt-to-income ratio, the best debt-to-income ratio for various loans and strategies for lowering it.
What Is Cash-Out Refinancing?
What is cash-out refinance? It is a mortgage option that lets homeowners replace their existing home loan with a new one and, in the process, convert a portion of their built-up home equity into cash. In other words, if you have substantial equity in your property, you can refinance it for a loan amount that exceeds what you currently owe. The difference between the new loan’s principal and your remaining mortgage balance is then disbursed to you as a lump sum of cash.
A cash-out refinance can be a powerful way to consolidate debt, fund home renovations, or address pressing financial needs. Moreover, mortgage refinance rates are often lower than those of credit cards or unsecured loans. So, how does a cash-out refinance work? Read on for details and the pros and cons.
How to Use Personal Loans for Debt Consolidation
You may find yourself overwhelmed by multiple high-interest debts and unsure how to regain control. One way that has helped many people simplify their finances is using personal loans for debt consolidation. This article will provide actionable advice to help you consider whether personal loan debt consolidation might be the solution you need.
How to Use Personal Loans to Pay Off Your Debt
Have you been wrestling with multiple credit card balances, medical bills, or other high-interest obligations? Do you wonder if there’s an easier way to get control of your payments? That’s where personal loans to pay off debt come into play. Essentially, you use the funds from a single loan to consolidate debt, leaving you with one monthly payment instead of several.
If you are ready to take control of your finances yet unsure where to start — this guide is for you. We explain the pros, cons, and application steps so you can decide if using a loan to pay off bills makes sense. Let’s dive in.
How to Apply for a Credit Union Personal Loan
Do you need funds for home improvements, debt consolidation, or an emergency? If so, your top priorities must be a trusted lender and reliable guidance on how to apply for a personal loan. Credit unions offer competitive rates, clear terms, and a supportive member experience. In this article, you’ll learn what steps to take before you apply for credit union loan financing, what documents are required, how the online application process works, what approval criteria look like, and how to manage your loan responsibly afterward.