The best personal finance New Year’s resolutions for 2025

Evercore ISI Senior Managing Director Mark Mahaney joins Varney & Co. to break down his top picks ahead of the new year.

The high inflation of recent years has continued to wreak havoc on many Americans’ wallets in 2024, but the start of the new year provides a great opportunity to set new financial goals to get back on track.

“As we move into 2025, the country’s financial landscape calls for proactive resolutions to address growing concerns like inflation and debt,” said WalletHub analyst Chris Lupo. FOX Business. “Top financial resolutions for 2025 should focus on smart budgeting, saving and paying down debt.”

Many Americans set new financial goals at the start of the New Year (iStock/iStock)

Here are some of the top financial New Year’s resolutions for 2025, according to WalletHub:

1. Make a realistic budget and stick to it

“With Americans carrying nearly $1.3 trillion credit card debtsetting realistic budgets is a must,” Lupo said.

CREDIT CARD DEBT AT ANOTHER RECORD HIGH, NEW YORK FED DATA SHOWS

2. Save more money

Lupo says saving is also key because many households don’t have emergency funds. He suggests starting small with the goal of saving two months of net pay and working your way up to a year’s worth.

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

Ramsey Solutions founder and CEO Dave Ramsey discusses how Americans can prepare financially for retirement in “The Bottom Line.”

3. Explore ways to refinance high interest rates

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

4. Pay off 25% of your credit card debt

The average American currently has over $10,000 in credit card debt, and the sooner it can be resolved, the better. WalletHub says it’s important to get serious about it, but suggests it’s probably best to start small by setting a goal to cut a quarter of it over the course of the year.

THE COUPLE REVEALS HOW THEY GAINED THEIR OWN FINANCIAL INDEPENDENCE

5. Fight against inflation

Look for ways to reduce the cost of everyday expenses, such as shopping around for everything you buy, taking advantage of deals and coupons, turning down the thermostat, buying in bulk and discounting until prices drop.

WalletHub suggests fighting high prices by shopping around and finding the best price on everyday items. (Paola Chapdelaine for The Washington Post via Getty Images/Getty Images)

WalletHub has 10 more suggestions for 2025 financial resolutions, including paying your bills as soon as you get your paycheck, making sure you have sufficient insurance for a catastrophe, protecting your identity, improving your financial knowledge and even looking for a better job.

GET FOX BUSINESS FROM THE MARKET BY DOING HERE

“Focus on financial and health literacy money habitslike paying bills right after payday,” Lupo said. “These steps will help make 2025 a healthier financial year.”