As we enter the second half of January, it's never too late to begin setting financial goals for 2025. Setting goals doesn't have to be overwhelming, and even if you're setting them in January, they don't have to be something that will take an entire year to accomplish. One of the most effective ways to stick to new goals is to start with smaller goals and shorter deadlines. You can build on these smaller goals throughout the year, so you never stop making progress. Remember the reason behind your goal and how it will positively impact your life, and use it to stay motivated. We've gathered five tips on how to set and stick to financial goals in 2025 and set yourself up for future financial success.
Audit Your Finances to Establish a Starting Point
You can't get to where you're going without knowing where to begin. Before you start setting financial goals for this year, take time to understand your current financial situation. Go through your bank accounts and any loans or credit cards you have. Document your income and expenses to get a baseline for your financial habits. From there, step back and look at your whole financial picture. We recommend categorizing your purchases to see where you spend most of your money. This information will help you identify areas where you want to make changes, such as cutting spending, increasing savings, or paying off debt.
Choose an Attainable and Measurable Goal
Although earning $1,000,000 sounds like a great goal, it's probably not attainable. After evaluating the current state of your finances and identifying areas where you want to make changes, it's time to begin setting financial goals for the year or timeframe of your choice.
If you are carrying debt, setting a monthly payment goal is a great step toward becoming debt-free. Even if your goal is to pay off your debt by the end of the year, we recommend setting smaller monthly goals.
If your goal is to cut spending on a specific category of your spending, set a monthly budget for that item. If you want to eat out less, set a weekly or monthly budget for eating out. It can also be helpful to make a grocery budget and even plan your meals to hold yourself accountable.
Are you working toward a savings goal? You can set aside money from each paycheck or establish a monthly savings goal. No matter your personality type, there are savings methods for everyone; find what works for you and stick to it!
Break Your Plan into Simple Steps
Now that you have chosen your measurable and attainable goals, it's time to create a plan of action to reach them. Setting financial goals is only the beginning. Establish daily, weekly, or monthly tasks, depending on what works best for you. Micro-habits are tasks you do every day to improve yourself. These habits can be static, which you set and repeat, or dynamic, where you start small and ramp up to improve your effort. You could put any spare change you get into a jar or slowly increase the amount you save each paycheck; simplicity is key. Setting financial goals is just the beginning.
Plan Regular Check-Ins
Set up regular alerts on your phone or calendar to remind you to check in on your progress toward your goals. If you set shorter-term goals, use these check-ins to establish your next goal to work toward. During these check-ins, it's essential to be honest with yourself about where you're at and make a plan to get back on track if necessary. Ask a trusted friend or family member to help you stay accountable, whether it's a simple reminder to track your progress or encouragement to keep going. You can track your progress or write a journal to reflect on your progress between official check-ins.
Reward Yourself for Hitting Your Goals
When you do hit your goals, make sure to reward yourself! Rewards don't have to be expensive; many options depend on your financial situation. If you're working to pay off debt, try an inexpensive activity to reward yourself, such as an outdoor activity with friends. Visit our blog for more budget-friendly ideas. If you hit a savings goal or have successfully cut your spending, it may be possible for you to indulge in a small reward. Allowing yourself to purchase something you have been wanting is excellent motivation to keep you on track throughout the timeframe you set.
Setting financial goals can feel daunting, but with the right approach, it's entirely achievable. By understanding your starting point, creating measurable goals, breaking them into manageable steps, and regularly checking your progress, you can set yourself up for success. Remember to celebrate your wins, no matter how small, and stay flexible as your financial journey evolves. With commitment and consistency, 2025 can be the year you take control of your finances and build the foundation for a brighter financial future.