Thinking about making a New Year’s resolution to get your finances in order? You might have better luck sticking to it than you’d expect.
Despite public perceptions that such resolutions are a waste of time, some findings suggest they can help people achieve their goals, at least for a while.
A 2024 survey from the Pew Research Center found that a “large majority” of people who made New Year’s resolutions said they had kept at least some of them a few weeks into the new year. And Fidelity Investments, which annually surveys American adults about their financial resolutions, found that almost two-thirds of those who made resolutions for 2024 said they were able to stick with them.
John C. Norcross, a psychology professor at the University of Scranton, was a co-author on a small study, published in The Journal of Clinical Psychology in 2002, that found that almost half the people who made a New Year’s resolution reported being successful after six months, compared with 4 percent of people who acknowledged a behavior they wanted to change but had not made a resolution.
He advised choosing realistic goals and being prepared for change to take time. “It’s not a 100-yard dash,” he said.
Jeff Kreisler, a managing director and head of behavioral science for J.P. Morgan Private Bank, said that people often make resolutions in January because of the “fresh start” effect; it’s a point in time when there’s a clear demarcation between the past and the future.
According to Fidelity, among Americans who said they were considering a financial resolution for 2025 (65 percent), the top goal was to save more money (43 percent), with many worried about unexpected bills.
Pew’s survey found that almost a third of American adults had made New Year’s resolutions for 2024. Those about money or finances were the second most common (61 percent), behind those targeting health, exercise or diet. Resolutions were especially popular among younger adults, Pew found, with almost half of participants ages 18 to 29 saying they had made at least one.
But because of human nature, simply relying on self-discipline to stick to your money resolution isn’t wise, Mr. Kreisler said. Instead, “playing little tricks on ourselves” is often helpful.
Start with a concrete goal as a resolution, he said, and jot it down: “You’re more likely to stick with goals if they’re written.” Then break it into digestible bites, so that it feels less daunting. Rather than saying, “I’ll save for my child’s college education,” commit to saving $200 a month — or whatever amount you can afford — in a 529 college savings account.
Expect that there will be setbacks, so you are not tempted to give up the first time you fall short. “You don’t have to be perfect,” Mr. Kreisler said. If your resolution was to save $500 and you saved just $150, he said, “it’s better than zero.”
Another technique is to acknowledge that while resolutions like saving and investing will benefit you in the future, they can feel burdensome right now. If you have resolved to, say, check your credit card statements monthly in the new year, it’s OK to reward yourself with a small treat after completing the task, said Karen C. Altfest, a certified financial planner based in New York. It could be going to a movie, taking a run in the park or having a glass of wine, she said — whatever appeals to you, as long as it isn’t extravagant.
Reframing the way you think about your financial resolution can make it feel like less of a chore, said Ashley Lapato, a personal finance educator at YNAB, a budgeting app. Say you have resolved to create a “payday routine” in 2025. Each time you get a paycheck, she said, calculate how much you need for living expenses — like rent or mortgage and utilities — then assign a “job” to the balance.
“Ask, ‘What do I want this money to do for me?’” she said. It could be eating good food, or saving for a vacation or a down payment on a home.
Keeping the ultimate payoff in mind helps make allocating your money feel less like a sacrifice, she said, and more like “an opportunity to get more this year for what you want out of life.”
Bridget Venus Grimes, a certified financial planner in Coronado, Calif., suggested that if you had trouble sticking to a goal of saving more, a resolution might start with tracking expenses for a couple of months to see where your money was going. If, for example, online shopping is your downfall, delete and unsubscribe to promotional emails and texts alerting you to deals. “Get rid of the temptation,” she said.
Set yourself up for success. Many advisers recommend making saving or investing automatic so that money is transferred regularly from your paycheck, or your checking account, into a designated savings account without your having to think about it each time.
Here are some questions and answers about New Year’s resolutions:
I’m resolving to build emergency savings in 2025. Where’s the best place to keep my cash?
Unexpected expenses were cited as a top concern in Fidelity’s resolution survey.
Leanna Devinney, a vice president and leader of a Fidelity branch in Hingham, Mass., advised keeping emergency cash equal to at least three months of expenses in an account offering “liquidity,” meaning that you can withdraw the money quickly if needed. Options include high-yield savings accounts, money market accounts and short-term certificates of deposit. (Just be aware you may have to pay a penalty if you break the C.D. before its term is up.)
Some employers offer programs to help workers save for unexpected expenses, so check with your benefits office.
Is it best to set just one resolution at a time?
If the goals are complementary — say, saving money and creating a budget, or saving money and starting an investment plan — simultaneous resolutions can be as successful together as they would be separately, Dr. Norcross said.
Why do some people skip making New Year’s resolutions?
Of the 70 percent of Americans who told Pew that they did not make New Year’s resolutions for 2024, more than half said their main reason was that they simply “do not like” to make them. About 12 percent said they did not make one because they broke resolutions too easily, while 9 percent said they could not think of one and 6 percent said they “forgot.”
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