As the new year approaches, many people consider making resolutions to improve their finances, and new research suggests that such resolutions may be more achievable than expected. According to a 2024 survey by the Pew Research Center, a large majority of those who made New Year’s resolutions reported keeping at least some of them for several weeks into the year. Fidelity Investments also found that almost two-thirds of people who set financial goals for 2024 were able to stick with them.
Realistic Goal-Setting is Key
Psychology professor John C. Norcross, who co-authored a study on the success of New Year’s resolutions, notes that realistic goal-setting and patience are key to achieving these resolutions. He advises people to view the process as a gradual journey, rather than a quick fix.
The ‘Fresh Start’ Effect
A “fresh start” effect in January motivates people to make resolutions, as it provides a clear break from the past and an opportunity to set new intentions, says Jeff Kreisler, managing director at J.P. Morgan Private Bank. According to Fidelity, saving more money is the most common financial resolution for 2025, with many people worried about unexpected bills.
Financial Resolutions Are Popular
For 2024, nearly a third of Americans made resolutions, with financial goals being the second most common (61 percent), following health-related resolutions. Financial resolutions were especially popular among younger adults, with nearly half of those ages 18 to 29 setting at least one financial goal.
Strategies for Success
However, simply relying on willpower may not be enough to succeed. Kreisler suggests “tricking” oneself with small strategies to stay on track, such as writing down goals, breaking them into smaller steps, and accepting that setbacks are part of the process. For example, rather than aiming to save for a distant goal like a child’s college education, focus on a concrete goal like saving $200 a month in a 529 plan.
Rewarding Yourself for Progress
Rewarding yourself for progress is another tactic that can help, says Karen C. Altfest, a certified financial planner. She recommends treating yourself to something enjoyable after reaching financial milestones, such as checking your credit card statements regularly.
Reframe Your Financial Goals
Reframing the way you approach financial resolutions can make them feel less like chores and more like opportunities, explains Ashley Lapato, a personal finance educator at YNAB. For example, creating a “payday routine” where you allocate a portion of your paycheck to savings or specific goals can make managing money feel more purposeful.
Tracking Expenses and Cutting Back
For those struggling with saving, Grimes suggests starting by tracking your expenses to identify areas where you can cut back. For example, if online shopping is a temptation, unsubscribe from promotional emails and remove shopping apps from your phone.
Automate Your Savings
One helpful strategy for many is to automate savings and investments, so that money is transferred regularly from a paycheck or checking account into designated accounts without needing to think about it.
Building Emergency Savings
For people resolving to build emergency savings, it’s recommended to keep at least three months of expenses in an easily accessible account, such as a high-yield savings account, money market account, or short-term certificate of deposit (C.D.), though be aware of potential penalties for early withdrawals from C.D.s.
Multiple Resolutions: A Balanced Approach
When it comes to setting multiple resolutions, Norcross suggests that complementary goals, such as saving money and creating a budget, can be tackled together successfully. However, some people skip resolutions altogether. Among those who chose not to make resolutions in 2024, 70 percent cited reasons such as dislike of resolutions, fear of failure, or forgetting to make them in the first place.
In Conclusion
In summary, while New Year’s resolutions can be challenging, with the right approach — realistic goals, strategic planning, and a little self-compassion — people can make meaningful progress in achieving their financial objectives.
