A new year is always a good opportunity to reset and refocus on your financial goals. According to studies, many Americans make financial resolutions to improve their money habits, but only a fraction actually stick with them. These financial resolutions can help you create more peace of mind and set yourself up for long-term success.

Financial New Year’s Resolution

Create a Budget

Your budget should take into consideration after-tax income, basic expenses, discretionary expenses, and a savings plan.

After-Tax Income

Start by projecting your after-tax income. After-tax income is net income after the deduction of all federal, state, and withholding taxes.

Expenses

What are your regular basic expenses to maintain your standard of living? Work on eliminating any high-interest debt before thinking about discretionary spending or a savings plan. What are your additional lifestyle expenses? This is often the area that can be refined within your budget to free up more money for your goals.

Consider Savings Opportunities

Most financial planners recommend saving at least 10 to 15% of your income. At minimum, contribute enough to receive your full employer match in a retirement account [401(k), 403(b), 457, or Thrift Savings Plan (TSP)], then aim to max out individual retirement account (IRA) and health savings account (HSA) contributions if eligible. Additional funds can be saved or invested depending on your financial goals.

• For money needed within a year: use cash, CDs, or money-market funds.
• For goals two to five years away: consider short-term fixed income strategies in a taxable account.
• For long-term goals: align your investments with your time horizon and risk tolerance, and choose between taxable and tax-advantaged accounts strategically.

Build an Emergency Fund

An emergency fund prepares you for the unexpected, such as job loss or medical expenses. This money should be held in cash alternatives and not tied to risky assets.

• If you’re more than five years from retirement: aim for at least three months of living expenses.
• Within five years of retirement: build six months of reserves.
• In retirement: hold one year of living expenses in reserve.

Track Your Credit Score

Your credit score is a snapshot of your financial trustworthiness. Monitor it regularly to ensure accuracy and catch errors that can hurt your score. Many banks and credit card issuers offer free tracking tools, or you can check directly with the three credit bureaus. Maintaining a strong score helps you qualify for better products and interest rates.

Optimize Your Portfolio

Track your asset allocation against your financial plan. Implement a rebalancing strategy that keeps your portfolio aligned with your goals. Learn more about building a rebalancing strategy.

Prepare for the Unexpected

Make sure your insurance coverage matches your needs: life, disability, health, home, auto, umbrella, and, when appropriate, long-term care. Review policies to ensure there are no gaps and that you’re paying competitive rates with strong carriers.

Protect Your Estate

Plan for the legacy you want to leave. Review and update beneficiaries, living wills, trusts, powers of attorney, and health care directives regularly. Estate laws can evolve over time, so revisit your plan to ensure it remains effective.

Final Thoughts

The best financial resolutions are the ones you actually follow through on. Small, consistent steps can create a big difference over time. Consider consulting with a fiduciary financial planner to help you set priorities, stay accountable, and build a plan that works for you.

More Resources

2025 Important Planning Numbers? (Free PDF resource)
Financial Planner for Tech Professionals
Financial Planner for Approaching Retirement
Backdoor Roth Guide + Flowchart
RSU Guide + Strategy After Vesting
Deferred Compensation Guide + Case Study
HSA Guide + Strategy for Reimbursement
Investopedia Roth 401(k) vs. Roth IRA: What’s the Difference?
Business Insider Backdoor Roth IRA: Understanding the loophole that gives high-income earners the tax benefits of a Roth IRA