When the calendar turns a new page, many of us embark on the tradition of setting New Year’s resolutions. If your goal for the coming year is to save more and get ahead financially, you’re not alone.
According to Fidelity Investment’s 2025 Financial Resolutions Study, 65% of Americans are considering a financial resolution for the new year. Additionally, people resolving to “save more money” are more focused on short-term savings goals in the coming year.
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In a recent blog post, personal finance expert Tiffany Aliche shared some things to review as part of your year-end financial checklist. If you’re wondering how you can achieve your own money resolutions and get ahead next year, check out the eight things she recommended.
Track Your Money
The first thing you’ll want to do, according to Aliche, is be aware of where your money goes.
Understanding where your money goes is the first step toward effective budgeting. Take the time to track your spending meticulously, whether using apps or the old-fashioned pen and paper. Be sure to record every expense, no matter how small. It’s also smart to set up alerts for large purchases and review your expenses weekly rather than monthly, according to Aliche.
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Review Your Credit Score
Next, you’ll want to check in on your credit. Aliche explained that your credit score is generally calculated based on the following components:
- Payment history (35%)
- Credit utilization (30%)
- Length of credit history (15%)
- Credit mix (10%)
- New credit (10%).
Your credit score is crucial for obtaining favorable interest rates on loans and credit cards, and a good credit score can potentially save you a ton of money on interest over time. To improve your credit score, it’s important to know where your credit stands, pay bills on time, check your balances and utilize credit, per LendingTree.
Check Your Spending Patterns
Reviewing your budget before the end of the year helps you better understand if you’re sticking to your spending plan or if adjustments are needed in the new year.
Take a close look at your income and expenses to see if there have been any changes since the beginning of the year. You should always focus on paying your essential expenses first, including housing, utilities and food, before discretionary expenses, like dining out and entertainment.
Make Sure You’re Saving Enough
Be sure to check how much money you’re saving each month and whether you’re meeting your savings goals. Aliche advised checking in on your emergency savings and retirement savings specifically to make sure you’re on track.
You can even automate direct deposits from your checking to your savings account that align with your payday so your savings will be on autopilot.
Review Your Investment Strategy
Carefully reviewing your investing strategy before the new year begins is crucial to ensure you’re on track to hit your long-term financial goals. Aliche recommended asking yourself these questions: How did my investments perform this year? Are my investments aligned with my goals? Is my portfolio properly diversified?
If your answers aren’t what you’re looking for, be sure you make some changes, including diversifying your investments and not trying to time the market.
Tackle Your Debt
Reducing and eliminating your debt as soon as possible should be at the top of your list heading into 2025. Debt eats a hole in your wallet and creates a continuous financial drain. The more debt you have, the more difficult it can be to get out of.
Aliche suggested listing out all of your debt — credit cards, student loans, car loans, mortgages and personal loans — and compare the amount with what you had at the beginning of the year to see how much progress has been made.
To work toward paying off your debt, a common strategy is paying off your highest-interest debt first to reduce the amount owed in the long term. According to Wells Fargo, using this method will likely mean paying less over time because the loans with higher interest rates are addressed first.
Think About Your Legacy
Aliche advised taking time to review (or make) an estate plan. While it’s not always fun to think about, being proactive here is important.
According to Financial Sense, only 32% of Americans have an estate plan in 2024 — a decline from 2023. Take the steps today to ensure your loved ones are taken care of in the future.
Set Your 2025 Money Goals
To wrap it all up, Aliche recommended following the SMART method when setting your 2025 money goals. That means your goals should be specific, measurable, achievable, relevant and time-bound.
By following the SMART method, you can set yourself up for financial success in the new year.
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This article originally appeared on GOBankingRates.com: 8 Things To Review as Part of Your Year-End Financial Checklist, According to Tiffany Aliche
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