10 Financial Resolutions for the New Year (With Ideas & Examples)

There's lots of research out there on why resolutions fail year after year.  Essentially, people just don’t go about it the right way; setting a huge goal like “I'm going to lose weight” is both unattainable (because you're not setting an action plan along with your resolution) and unspecific (how much weight?) No surprise here, but financial resolutions are no different. 

In order for financial resolutions to work, you have to first set the goal (FYI — I'll use the term “resolution” and “goal” interchangeably in this post) and then create an action plan. This is really the only way any resolution will work if you want to stick to it, but more on that later.

Why I prefer financial resolutions that function like mini-goals.

 

I know that often it can definitely feel that by simply playing the resolution game we're setting ourselves up for failure. 

• We didn't take the time to set a proper goal.
• Or we lose stream.
• Or something life-changing and unexpected happens (like…a baby, or a divorce, or a death or accident) this event completely turns all your initial goals and planning on its head.

It's frustrating. For this reason, I often don't set resolutions and instead set smaller financial goals for the year.  But I give myself a full 365 days to accomplish them. Some I contribute to each month in my budget, while others I tackle all at once at the end of the year, or at tax or bonus season. 

So, if one of your financial resolutions is to “be better with your finances next year”, take it one step further and make it a specific, action-based financial resolution. Below are ten of my favorite examples, many of which I've tackled myself over the years.

 

10 Specific Financial Resolutions You Can Definitely Do Next Year

 

Financial Resolution #1 – “I want to improve my credit score by (x) points next year”

 

Resources to help:

• How to build credit the fastest when you have low or no credit
• 9 ways to build your credit fast [Nerdwallet]
• How to improve your score by 40 points quickly

Financial Resolution #2 – “I want to pay off (x) amount of credit card debt in (x amount of time.)”

 

Resources to help:

• A FREE Printable Debt Tracker
• My guide to how I paid off $8,000 in 90 Days
• A primer on debt consolidation: what it is, how it works, and how it can work for you.

Financial Resolution #3 – “I’d like to be more aggressive with my student loans and pay off (x) by the end of the year.

 

Resources to help:

 

• Investigate refinancing your student loan debt with Upstart.
• How to Pay Off Student Loans Fast: 5 Strategies to Try

Financial Resolution #4 – “I’d like to fully fund my 6-9 month emergency fund this year.”

 

Resources to help:

• How to Save 1000 in a Month
• What is a rainy day fund? Why do I need one?
• Open a new separate high-yield savings account. 

Financial Resolution #5 – “I’d like to save an additional ($x dollars) each month”

 

Resources to help:

• The 6-Step Guide to Setting a Budget (so you can figure out where that money is going to come from!)
• How to find money in your budget when you need it
• 82 Ways to Save More Money This Year

Financial Resolution #6 – “I’d like to become a homeowner/refinance my home this year.”

Resources to help:

• How to Buy a Home: The 8 Step Guide
• Resolve to save up a down payment for a house in the next 12 months. (Here's the math-based guide on how to do it.)
• How to Set Your Home Buying Budget

Financial Resolution #7 – “I want to do one money-related task each month to make managing my money easier.”

 

Resources to help:

• Set up automatic bill pay and watch your life change. 
• Create your own money diary and track your spending for the month of January.
• Try the envelope savings (cash only) method. 
• Do a 30 day challenge, such as stopping eating out for 30 days and save the extra.

Financial Resolution #8 – “I want to lower my shopping budget each year from (x) to (x).”

 

Resources to help:

• Our guide to how much to spend on clothing each year + ways to shop on a budget and make your money go further.
• Try not shopping (for clothes, non-essentials etc.) for 30 days.
• How to complete a no-shopping challenge for a full calendar year. 

Financial Resolution #9 – “I’d like to pay for my/my family’s summer vacation in cash.”

 

Resources to help:

• How to travel on 5% of your income each year
• Top Money Saving Apps
• Sell your stuff and use the extra to put toward vacation savings. 
• Get Qapital and save the change from your everyday expenses. Small pennies make big dollars!

Financial Resolution #10 – “I want to earn (X) amount extra this year.

 

Resources to help:

• Think about ways to diversify your income and earn more 
• My guide to starting a side hustle/side business
• How to start a money-making blog
• All the ways to earn extra even when you have a full-time job

 

The TL:DR

Here’s a quick glimpse of my Trello board where I keep my financial goals. This is a screenshot from 2019 but I still do this every year. I'm showing this photo because this was the last year I accomplished all of my financial goals. (Pandemic, anyone? ha!)

 

I attribute the success I had in this year to setting such specific goals, with amounts and timelines and everything.

What I love about smaller, more action-based financial resolutions is that they're both very attainable, and even a small money shift now, in January, can have a big impact on your finances later, like in August or September.

So, figure out what you really want to accomplish, put a timeline on it, and get to work. 😉