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New Year, New Financial You: Top Resolutions for 2025

As the clock strikes midnight on New Year’s Eve, many Americans will be greeted with a harsh reality: a hefty credit card bill from a month of holiday splurging. It’s no wonder that paying off debt and building savings top the list of financial New Year’s resolutions for 2025.

Breaking Free from Debt

According to a survey by The Motley Fool, paying off debt is the top financial priority for 2025, with credit card debt being a major concern. And for good reason: credit card rates are hovering near all-time highs. Financial experts agree that tackling debt should be a top priority, especially for those carrying high-interest credit card balances.

Savings: The Key to Financial Freedom

Building a savings account is another top resolution, with many experts recommending an emergency fund to cover three to six months of expenses. This safety net can help avoid debt and provide peace of mind in case of unexpected expenses. With online banks offering competitive interest rates, now is a great time to start or grow your savings.

Five Financial Resolutions to Kick-Start Your Year

1. Create a Budget: Track your spending and stay on top of your finances with a budgeting app or spreadsheet. Aim for the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings.
2. Pay Off Credit Card Debt: Focus on paying off high-interest debt, and consider transferring balances to a zero-interest credit card. Even paying off a quarter of your balance in 2025 can make a big impact.
3. Build an Emergency Fund: Aim to save enough to cover three to six months of expenses, and take advantage of competitive interest rates from online banks.
4. Plan for Retirement: Use an online retirement calculator to estimate your retirement needs, and consider working with a retirement planner to get on track.
5. Increase Income: Look for ways to boost your income, whether through a side hustle, salary negotiation, or investing in yourself.

Making Your Resolutions Stick

While many Americans are confident in their ability to keep their New Year’s resolutions, the reality is that more than half of those who made resolutions in 2024 failed to achieve them. To avoid this fate, set specific, achievable goals, and track your progress regularly. With the right mindset and tools, you can make 2025 a year of financial progress and freedom.