How to stick to your financial New Year's resolutions

The start of the new year often feels like a fresh opportunity. It’s a chance to reset, refocus and tackle those financial goals you’ve been thinking about over the past year. Whether you want to save more, pay down debt or simply feel more in control of your money, sticking to resolutions can be challenging. However, with the right steps, it’s absolutely possible.

Step 1: Understand your money behavior

Before you can change your habits, it helps to understand why you spend and save the way you do. Our money behavior is shaped by many influences, but there are three that stand out:

• Family: We learn many of our money habits during childhood. Whether it’s how we view debt or how we prioritize saving, we are a lot more like our parents or caregivers than we think.
• Media: Movies and social media often depict images of “the good life” by showing status symbols like lavish vacations, designer clothes and luxury cars. Most of what we see in the media are unrealistic lifestyles, but they can still influence how we think about money.
• Culture: America is a culture of spending. The “buy now, pay later” mentality is everywhere and we often measure success by what people own rather than who they are. This pressure can lead us to prioritize wants over needs.

Step 2: Get organized

If you’re ready to shift your money behavior, start small by taking some time to inventory your habits. Begin by listing the products and services you spend money on regularly, then note the ways you’re already doing well, whether that’s saving consistently or making thoughtful purchases. Finally, identify the specific habits you want to change. Whether it’s saving money for an emergency, getting spending under control or planning for the future. Get organized and set up a system to help reach your goals. This exercise creates awareness, which is an important step toward accomplishing your new year financial resolutions.

• Schedule: Treat your finances like an important appointment. Pull out your calendar and schedule time to review your finances. Just like you put in your calendar when you have a meeting or doctor appointment, you can do the same for your money. Maybe it’s every 1st and 15th of the month, or the night before your next paycheck.
• Inventory: Know what you spend money on and where you store your necessary documents, statements and passwords.
• Organize: How will you organize your money? Choose a system that works for you. It could be an app that automates tracking or a simple notebook and pen. If you are unsure what items to keep track of, you can reference our free spending plan worksheet to get started. Find a system that you like and is easy to manage that way you are more likely to stick with it.

Step 3: Set SMART Goals

Goals provide direction. Instead of trying to tackle everything at once, consider picking one or two priorities that are important to you right now and then pursue them with a vengeance. Make sure the goals are SMART, meaning, Specific, Measurable, Attainable, Realistic and Timely. For example, “Save $1,000 for an emergency by June” is much more actionable than “Save more money.” By outlining your goals in this way, it can help ensure you are more likely to achieve them.

Step 4: Review your accounts

Take a look at all of your current accounts. Are there any minimum balance requirements or annual fees? If you have multiple accounts, do you really need all of them? Do you need to open your first checking account? Take a moment to decide how you want to structure your finances. For example, some people have a single checking account to avoid overwhelm, while others might have multiple accounts, each dedicated to specific purposes like bills or discretionary spending. Depending on your personality type, the way you structure your money can help increase your chances of sticking to your financial resolutions.

Step 5: Check your credit

Your credit score impacts everything from loan approvals to interest rates. See where you stand by obtaining your free credit report at annualcreditreport.com. If you’re a Credit Human member, you can also monitor your credit score for free through our digital banking platform. This tool gives you real time updates, breaks down the factors affecting your score and even has a feature to set up a plan to improve your score if that is one of your SMART goals for the new year. Keeping an eye on your credit and having a clear plan makes it easier to stay on track with your financial resolutions all year long.

While you’re at it, make sure to also review your credit cards. The average American carries up to four different credit cards. Take note of what benefits your credit cards have and see if they can help you achieve your goals faster. Consider limiting yourself to carrying only one card at a time to help avoid impulse purchases. Is there an annual fee? Do you get enough money back in rewards to justify having the fee? If so, decide how to utilize cards for things like cash back, travel miles and more.

Step 6: Simplify finances with automation

Automations and alerts can be a game-changer. Setting up automatic transfers for bills or savings goals ensures that:

1. Your money actually goes where it is supposed to go.
2. Your bills are paid on time every month (without you even thinking about it).
3. You save money and time.

You can take it a step further and pair automation with digital banking alerts for extra peace of mind. Alerts can notify you about low balances, large transactions or upcoming bills so that you stay in control of your money.

Step 7: Align your priorities

When it comes to financial resolutions, our motivations often go deeper than just managing money. It can be a tool to live a life that reflects your values. Every dollar you spend can support what matters most to you, whether that’s family, experiences or financial security. Taking time to align your spending with your priorities can help you feel more intentional and more motivated to accomplish your goals.

Before spending, ask yourself:

• Why is this expense important to me?
• How would my life be impacted if I reduced or stopped spending on this expense?
• If it is important to me to maintain this expense, how can I prioritize it responsibly?

Consider your subscriptions. You might be surprised to see how much money is going to these expenses each month. For example, the average American spends nearly $250 per month on subscriptions services alone. Eliminating or cutting back on certain expenses can free up money for your bigger goals.

We’re here to help you achieve your financial resolutions

Sticking to financial resolutions isn’t about perfection. It’s about progress. Every step you take toward achieving your goals helps build confidence and a positive impact that grows. At Credit Human, our mission is to help reduce financial stress, whether it’s related to financial resolutions or something bigger, because we believe everyone deserves judgement-free support on their financial journey.

If you’re ready to take the next step, visit one of our Financial Health Centers to talk to someone today. Our team can help you review your resolutions, create a personalized plan and give you the tools to stay on track—for free—in a supportive, no-pressure environment. Because small steps lead to big changes, and this year, you deserve the gift of financial peace of mind.