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New Year’s Financial Resolutions

As the new year dawns, individuals and families often reflect on their financial goals and set ambitious resolutions to achieve them. It’s a prime opportunity to revitalize savings strategies and work towards a more secure financial future. Whether it’s boosting retirement contributions, paying down debt, or building emergency savings, a new year can be a new start.

One of the key trends driving new year financial planning is the growing emphasis on holistic, goal-oriented approaches. Rather than focusing narrowly on a single metric like total savings or debt reduction, more people are taking a comprehensive view of their financial landscape and aligning their resolutions with their broader life objectives.

Many people now prioritize long-term financial goals over short-term spending when setting New Year’s resolutions. A recent survey found that 69 percent of Americans said they would make a financial resolution for 2025. When making a financial New Year’s resolution, 66 percent think inflation will make hitting their goals more difficult.

For example, a young family with a newborn child may prioritize building up their emergency fund and exploring college savings options as part of their new year’s financial plan. An established household nearing retirement age, on the other hand, might dedicate their efforts to maximizing retirement account contributions and fine-tuning its investment strategies.

“Regardless of their specific circumstances, everyone can benefit from taking a structured, collaborative approach to new year financial planning,” says Michael Norton Senior Vice President at David Lerner Associates.  “By clearly defining their goals, creating a detailed action plan, and holding themselves accountable, individuals and families can make meaningful progress towards their savings and debt reduction targets.”

Studies show that people who write down financial goals are 42 percent more likely to achieve them than those who don’t. Harvard Business School research found that people who set clear and measurable goals are 76 percent more likely to reach them.

One effective strategy is to start by thoroughly reviewing the previous year’s finances. Examining spending habits, income sources, and existing savings can help identify areas for improvement and establish realistic targets for the coming year. From there, people can work to allocate their resources and streamline their budgets to align with their new year’s resolutions.

Another important consideration is the role of automation in facilitating consistent savings. By setting up automatic transfers from checking to savings accounts, or automatically increasing retirement contributions, individuals can remove the friction from their savings process and ensure that their financial resolutions become embedded into their everyday routines.

Of course, life’s unpredictable nature means that even the most carefully crafted new year financial plans can be derailed by unexpected events. That’s why it’s crucial to some flexibility and contingency planning as part of those resolutions.

Maintaining an accessible emergency fund, exploring supplementary income streams, and regularly reviewing and adjusting strategies can help weather any storms that arise. Some say households should have at least 3-6 months’ living expenses set aside in an emergency fund.

“The new year is a natural time for people to reflect on their finances and set goals for the future,” explains Michael Norton Senior Vice President at David Lerner Associates. “We’re seeing more clients take a big-picture approach, focusing on aligning their savings and spending with their overall life priorities rather than just chasing arbitrary targets.”

Ultimately, the start of a new year represents a prime opportunity to recommit to financial goals and take concrete steps towards a more prosperous future. By approaching New Year’s resolutions with intentionality, discipline, and a willingness to adapt, individuals and families can position themselves for lasting success and greater peace of mind in the coming years.


Material contained in this article is provided for information purposes only. It is not intended to be used in connection with evaluating any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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