A New Year’s Resolution is a classic way of adding new habits to your routine, or for setting goals for yourself heading into the new year. When it comes to setting financial resolutions, there’s no shortage of things you could choose to focus on.
According to Fidelity Investment’s annual Financial Resolutions Study, the top three financial resolutions for Americans have remained consistent over several years: “Save More Money,” “Pay Down Debt,” and “Spend Less Money.” Nearly a quarter (24%) of respondents also listed emergency savings as their top goal, with 79% of respondents also looking to build up their emergency fund throughout the year. So, let’s take a look at five potential resolutions you could set for 2025!
1) Save More Money
Saving more money might sound like a deceptively simple goal—but the truth is that there are various ways you can approach bolstering your savings. An important question you need to ask yourself is “What am I saving for?” Are you looking to build up an emergency fund, or are you more focused on saving for retirement? Before you set a savings goal, it’s important to know exactly what you want to achieve so you can identify what savings practices will best set you up for success.
If you’re looking to grow an emergency savings account, a high-yield savings or checking account (such as our Kasasa Cash account) can be a great way to build your rainy-day fund. If retirement is what you’ve got your sights set on, increasing 401k contributions or meeting with a financial advisor to review your retirement strategy are great steps to take. Regardless of what your goals are, identifying what exactly you’re looking to save more money for is a critical part of building a better savings strategy.
2) Pay Down Debt
Paying down debt is another significant goal set by many Americans. According to Experian, the average Millennial (1981-1996) holds just over $6,000 in credit card debt alone, with an average Generation X (1965-1980) individual holding over $9,000 in credit card debt. Debt is one of the most significant factors in limiting a person’s ability to build wealth, so paying off debt is a great financial resolution to consider.
When building a strategy to pay off debt, prioritize the highest-rate debt you have and work your way down. Minimizing the amount of interest you pay from month to month will make a difference over time, whether it’s through helping you keep a little extra cash in your pockets or giving you even more to put towards paying off other debts.
Debt can also be consolidated (sometimes at a lower rate and payment) through balance transfers on credit cards, personal loans, or home equity loans or lines of credit, to name a few examples. Consolidating debt means combining multiple debts into a single loan or credit card, and don’t underestimate the value of simplicity: one of the most common ways debts can become difficult to manage is missed payments, and one payment is much easier to keep track of than five or six.
So, no matter what type of debt you’re looking to pay down, building a thoughtful plan is the most effective way to succeed in this resolution—and if you need help, one of our Certified Financial Counselors is always here for you!
3) Spend Less Money
While this resolution might sound simple, it’s actually one of the more complicated resolutions you might choose to make. Wanting to spend less money is one thing, but figuring out what to spend less money on can be a difficult process that’s different for each person and their unique financial situation.
If you’re considering this resolution, you aren’t alone: according to Experian, nearly three out of every four Americans experienced a financial setback in 2024, with nearly half having to dip into their emergency funds at some point throughout the year. Combined with the impact of recent inflation (and with nearly one-third of Americans describing their relationship with money as “stressful”), many are re-evaluating their spending choices.
However, an effective way of minimizing that stress is to set well-defined goals for yourself, and one of the most tried-and-true financial goal tools is the trusty budget. Setting a budget is one of the most effective ways to adjust your spending, and smart budgeting can help you limit untracked expenses and prevent you from spending more than you intended to.
Start by documenting all your monthly fixed expenses (such as rent/mortgage, utilities, and other essentials), and build on your budget from there. You can also use the Financial Wellness tool in our Online & Mobile Banking to track your spending, set savings goals, and monitor your progress throughout the year, even when on the go—and speaking with a Certified Financial Counselor can always help, too!
4) Improve Your Credit Score
Improving your credit score can sometimes feel like a confusing goal to tackle; what exactly are you supposed to do? The answer can vary depending on your financial situation, but there are a few handy tips you should keep in mind:
- Make Your Payments on Time
While even one late payment will lower your credit score, a history of on-time payments will absolutely give your score a boost! This is one of the easiest ways to boost your score, so setting up automatic monthly payments or reminders is a great strategy to ensure nothing slips through the cracks. - Monitor Your Report for Errors
Errors can happen, even on credit reports! Sometimes, mistakenly reported information can appear on your report that may impact your score negatively. Spotting and reporting these when you find them keeps your report accurate and prevents inaccurate (or even fraudulent) information from harming your credit score efforts. - Consider Your Utilization Rate
Your credit utilization rate is the amount of credit you’re using out of your total available credit. In practice, that means having a balance of $100 with a total available credit of $1,000 would result in a 10% utilization rate. Staying below a 30% utilization rate is a common sweet spot for raising your score, so keep that in mind when deciding how much of your available credit to use, or what kind of limit to request when applying for a new card.
5) Monitor Your Accounts — Make it a Habit!
Regularly monitoring your accounts has a few big advantages, but let’s focus on one in particular: catching fraudulent transactions! In the same way checking your credit report regularly can help you spot fraudulent loan applications, monitoring your accounts can help you spot suspicious transactions right away. For example, fraudsters won’t always try to take a large sum right away; sometimes they’ll send a small transaction through first to ensure they can successfully transfer larger sums later. Some fraudsters even prefer to take smaller sums every so often, hoping they’ll blend in with your other transactions without you noticing, allowing them to steal larger sums over time.
One of the most helpful ways to monitor your accounts is through setting up notifications in Online & Mobile Banking, as well as Sun Card$afe. Notifications help you see transactions right when they occur and give you full control over your cards in the event of suspicious activity. Protecting your finances is important, and making a habit of it would certainly be a great resolution!
Choose What’s Best for You
No matter what resolution (or resolutions!) you decide to make, you’ll be working towards a better financial future—and that’s great! Need assistance along the way? We’re here to help.