Top personal finance resolutions for 2025

High inflation in recent years continues to wreak havoc on many Americans’ wallets in 2024, but the start of the new year offers a great opportunity to set new financial goals to get back on track.

“As we enter 2025, the country’s financial landscape calls for proactive decisions to address rising concerns such as inflation and debt,” said Chris Lobo, an analyst at WalletHub. Fox Business. “The most important financial resolutions for 2025 should focus on smart budgeting, saving, and paying down debt.”

Here are some of the most important New Year’s financial resolutions for 2025, According to WalletHub:

1. Set a realistic budget and stick to it

“With Americans carrying nearly $1.3 trillion Credit card debt“Setting realistic budgets is a must,” Lobo said.

Credit card debt rises to another record high, according to New York Federal Reserve data

2. Save more money

Saving is also key, Lobo says, as many families lack emergency funds. He suggests starting with a small project with the goal of saving two months’ wages and working up to a full year.

“Don’t forget to maximize your profits: 5%+ APYs on online savings accounts make switching banks worthwhile,” he noted, adding that high-yield certificates of deposit are also worth considering.

3. Explore ways to refinance high interest rates

High-interest debt is expensive, so Lobo says to consider tools like balance transfer cards or debt consolidation loans to cut costs.

4. Pay off 25% of your credit card debt

The average American currently carries more than $10,000 in credit card debt, and the sooner it can be addressed, the better. WalletHub says it’s important to get serious about this, but suggests it’s best to start small by setting a goal of shaving off a quarter over the course of a year.

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5. Fighting inflation

Find ways to cut costs on everyday expenses, such as shopping for everything you buy, taking advantage of deals and coupons, turning down the thermostat, buying in bulk and discounting until prices drop.

WalletHub has 10 more suggestions for 2025 financial resolutions, including paying bills right after you get your paycheck, and making sure you have Adequate insurance When disaster strikes, protect your identity, improve your financial knowledge, and even find a better job.

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“Focus on financial and health literacy Money habits“Like paying bills right after payday,” Lobo said. “These steps will help make 2025 a financially healthier year.”