5 No-Excuses Financial Priorities For the New Year

Yeah, yeah, yeah. We get it. Every year around this time, you start realizing that you sucked at keeping your New Year's resolutions from this time last year.

According to the Motley Fool, 69 % of Americans surveyed plan to make a financial New Year's resolution for 2025.

And a vast majority of them will fall short.

When you get tired of being broke, get off your a$$ and give yourself a fighting chance to be better with your money in 2025 than your were in 2024.

"The first step towards getting somewhere is to decide you're not going to stay where you are."

~ J.P. Morgan

"Paying off debt tops the list of goals for those with a financial New Year's resolution."

Motley Fool

• Audit Your Spending (a.k.a. Stop the Bleeding)
  Have your ever looked at your account balance at the end of the month and wondered, "Where the hell did my money go?"

  The beginning of the New Year is the perfect time to take a long, hard look at where you spent your money the previous year.

  Was it your daily coffee or lunch? Subscriptions you forgot about? Impulse buys you regret? Or could it be fraud?

  Take some time this upcoming weekend reviewing your statements from the previous year. Analyze patterns in your spending and identify where you can cut back.

  If you don't have a budget, it is also time to be a damn adult. While only 36% of Americans have a written budget, it is one of the most effective methods of tracking and ultimately managing your finances.

  In 2025, cut the crap, plug the leaks, and figure out how to keep more of your cash in 2024.

• Set Clear, No-BS Goals
  Stop with the “Save more” and “spend less” resolutions.

  Those aren’t goals; they’re lazy wishes.

  In order for your New Year's financial resolutions to be impactful, they must be specific: “Pay off $2,000 of credit card debt” or “Invest 15% of my income.”

  Make your financial goals specific and measurable. Then break each down into smaller more achievable bites.

  Remember that budget we discussed above? Yeah, now's the time to create one. That's the plan you're going to need in order to actually reach your money goals.

  Do. Not. Skip. This. Step.

• Get Rid of Toxic Debt
  Seventy-seven percent of American households carry some sort of debt. While a significant portion of that debt is due to mortgages, $1.13 Trillion is owed as credit card balances.

  Now is the time to devise a plan to bury your high-interest credit card debt. Funnel every spare nickle into paying it off so you can start the year with less financial dead weight holding you back.

  Most financial advisors advocate for either the debt snowball or the debt avalanche methods. No matter which approach you take, make sure you're aggressive with eliminating as much high interest debt as possible.

• Supercharge Your Emergency Fund
  In case you haven't figured it out yet, life is going to life. Just when you think you have a handle on your responsibilities, something is going to go wrong.

  Maybe it's a flat tire. Or an unexpected medical expense.

  A dismal 37% of American adults surveyed wouldn't be able to cover an emergency of more than $400 without having to take on debt. And an cringe-worthy 21% have ZERO emergency funds at all.

  You know that rainy day fund you keep saying you’ll build? Do it now. Aim for 3-6 months of expenses in a liquid account, so 2025 surprises don’t completely wreck your financial progress.

• Invest Like You Mean It
  If your money isn't making you money, it's losing you money. Stop letting your money sit around doing nothing.

  Your money can be your best employee. Done properly, it can eventually replace your active income. But you must be intentional about investing. Do some research about your options and determine how much risk you can tolerate. Then take action.

  You can max out your 401(k), start that Roth IRA, or put your cash to work in an index fund.

  The earlier you invest, the harder your money works—so stop procrastinating.

Bottom line: The new year isn’t going to magically fix your financial mess. Take control now, or spend another year wondering why you’re stuck in the same place. Your move.