10 tips from experts to help you change your relationship with money in 2025

NEW YORK — With the end of 2024 around the corner, you might be reflecting on financial goals for 2025.

Whether you’re saving to move out of your parents’ house or pay off student loan debt, financial resolutions can help you stay motivated, said Courtney Alev, consumer advocate for Credit Karma.

“Entering a new year doesn’t erase all our financial challenges from the prior year,” Alev said. “But it can really help to bring a fresh-start mentality to how you’re managing your finances.”

If you’re planning to make financial resolutions for the new year, experts recommend that you start by evaluating the state of your finances in 2024. Then, set specific goals and make sure they’re attainable for your lifestyle.

Here are some tips from experts:

Change your relationship with money

Think about how you currently deal with finances — what’s good, what’s bad, and what can improve.

“Let this be the year you change your relationship with money,” said Ashley Lapato, personal finance educator for YNAB, a budgeting app.

If you feel like money is a chore, that there’s shame surrounding the topic of money, or like you were born being “bad at money,” it’s time to change that mentality, Lapato said.

To adjust your approach, Lapato recommends viewing money goals as an opportunity to imagine your desired lifestyle in the future. She recommends asking questions like, “What do my 30s look like? What do my 40s look like?” and using money as a means to get there.

Liz Young Thomas, head of SoFi Investment Strategy, added that it’s key you forgive yourself for past mistakes in order to move into the new year with motivation.

Know your “why”

When setting your financial resolutions for 2025, it’s important to establish the “why” of each, said Matt Watson, CEO of Origin, a financial tracking app.

“If you can attach the financial goal to a bigger life goal, it’s much more motivating and more likely you’ll continue on that path,” Watson said.

Whether you’re saving to buy a house, pay off credit card debt or take a summer vacation, being clear about the goal can keep you motivated. Watson also recommends using a tool to help you keep track of your finances, such as an app, spreadsheet, or website.

Budget, budget, budget

“After three years of inflation, your pay increases are likely still playing catch up to your monthly expenses, leaving you wondering where all the money is going,” said Greg McBride, chief financial analyst at Bankrate. “Make that monthly budget for 2025 and resolve to track your spending against it throughout the year.”

McBride said that you may need to make adjustments during the year as certain expenses increase, which would require cutting back in other areas.

“Calibrate your spending with your income, and any month you spend less than budgeted, transfer the difference into your savings account, ideally a high-yield savings account,” he said.

Pay down outstanding debt

“Interest rates aren’t likely to come down very fast, so you’re still going to have to put in the hard work of paying down debt, especially high-cost credit card debt, and do so with urgency,” McBride said.

Start by taking stock of how much debt you have now relative to the beginning of the year. Hopefully you’ve made steady progress on paying it down, but, if you’ve gone in the other direction, McBride encourages making a game plan. That includes looking into 0% balance transfer offers.

Take control of your credit card interest rate

“You have more power over credit card interest rates than you think you do,” said Matt Schulz, chief credit analyst at LendingTree. “Wielding that power is one of the best moves you can make in 2025.”

A 0% balance transfer credit card is “a good weapon” in the fight against high card APRs, or annual percentage rates, he said. A low-interest personal loan is an option as well.

You may simply be able to pick up the phone and ask for a lower interest rate. LendingTree found that a majority of people who did that in 2024 were successful, and the average reduction was more than 6 points.

Set realistic, practical goals

When planning for your financial resolutions, it’s important to consider how you’re going to make your goals sustainable for your lifestyle, said Credit Karma’s Alev.

“It really is a marathon, not a sprint,” Alev said.

Alev recommends setting realistic, practical goals to make it easier to stick with them. For example, instead of planning to save thousands of dollars by the end of the year, start by saving $20 a paycheck.

Even when your plans are achievable, there are times you’ll get derailed. Maybe it’s an unexpected medical bill or an extraordinary life event. When these situations happen, Alev recommends trying not to feel defeated and working to get back on track without feeling guilty.

Don’t bury your head in the sand

“You can’t manage what you can’t see, so set a New Year’s resolution to check your credit score monthly in 2025,” said Rikard Bandebo, chief economist at VantageScore. “Be sure to pay more than the minimum on your credit accounts, as that’s one of the best ways to boost your credit score.”

Bandebo also advises student loan borrowers to make all payments on time, as servicers will begin to report late payments starting in January, and missed payments will affect borrowers’ credit scores.