With 2025 approaching, many individuals are reevaluated their financial strategies and priorities, aiming for greater fiscal responsibility and well-being. Experts stress the importance of setting realistic financial resolutions to change one’s relationship with money and improve financial stability.
Courtney Alev, consumer advocate for Credit Karma, advises, "Entering a new year doesn’t erase all our financial challenges from the prior year, but it can really help to bring a fresh-start mentality to how you’re managing your finances." The close of the year is the perfect time to reflect on financial goals, whether they involve saving for a move, paying off student loans, or addressing debt.
Changing one's relationship with money can be transformative. Ashley Lapato, personal finance educator for YNAB, emphasizes, "Let this be the year you change your relationship with money." This might mean rethinking how you view your financial state and considering money management as an opportunity rather than a constraint. A key tactic includes asking what your envisioned lifestyle looks like and mapping how money can facilitate those goals.
Matt Watson, CEO of the financial tracking app Origin, underlines establishing the purpose behind financial resolutions. He suggests, "If you can attach the financial goal to a bigger life goal, it’s much more motivating and more likely you’ll continue on the path." This could mean saving for vacations, purchasing homes, or tackling debts. Keeping track of spending through budgeting tools can bolster these efforts.
With inflation affecting household budgets, Greg McBride, chief financial analyst at Bankrate, insists on creating and sticking to monthly budgets: "Make your monthly budget for 2025 and resolve to track your spending against it throughout the year." Adjustments may be necessary based on living costs, but he highlights the importance of transferring any unspent budget amounts to savings accounts.
Given the current economic climate, many find themselves grappling with high-interest debts. McBride notes, "Interest rates aren’t likely to come down very fast, so you’re still going to have to put in the hard work of paying down debt." He recommends taking inventory of existing debts and exploring options like 0% balance transfer offers.
It's also important for individuals to take charge of their credit scores, as Matt Schulz from LendingTree explains, "You have more power over credit card interest rates than you think you do." Leveraging tools like balance transfer cards or negotiating with lenders can effectively lower interest rates and improve overall financial health.
Setting attainable, long-term financial goals is advised as well. Alev stresses, "It really is a marathon, not a sprint," explaining how starting small, perhaps by saving as little as $20 per paycheck, can build momentum over time. Staying motivated through challenges remains important; unexpected expenses should not derail progress.
Another noteworthy point from Rikard Bandebo, chief economist at VantageScore, is the necessity of monitoring one’s credit: "You can’t manage what you can’t see." Regularly checking credit scores and ensuring timely payments aids significantly in boosting financial health.
This caution against burying one’s head highlights the proactive approach needed to avoid falling behind.
Promoting financial wellness can also mean addressing mental health around finances. Alejandra Rojas, personal finance expert, urges individuals to prioritize their relationship with money, recognizing its psychological impact. "Your mental health with money should be a resolution," insists Rojas. Addressing financial trauma and maintaining open discussions with loved ones can contribute positively to financial wellness.
But not everyone’s path to financial stability is straightforward or willingly paved. Several individuals have faced notable struggles, including the Kwaito legend Doc Shebeleza, who recently appealed for help as he navigates significant medical expenses post-surgery. Shebeleza has expressed gratitude for the years he has had caring supporters, yet his current situation underlines the financial strain many face due to health-related issues.
Shebeleza, who has been undergoing multiple medical treatments, revealed, "I need help. I’ve spent years helping others; when someone is in need, they should be supported." This candid request for assistance resonates with many who find themselves seeking financial help due to unforeseen circumstances.
Adriaan-Jack Booysen offers another perspective, showcasing resilience and gratitude as he transitions to using his new rent-to-own electric wheelchair. His campaign raised funds to cover equipment costs, allowing him once again to participate actively with his family. He articulated the joy this mobility brings: "This is my blessing on wheels."
Both examples stress the necessity of community support during difficult financial times. Many individuals experience financial hardship, and reaching out for help—whether through articles of fundraising or directly asking upon friends and family—is integral to overcoming these challenges.
Walker, who grew his own successful towing company, reflects on the learning curve he experienced with managing finances, emphasizing the knowledge gained through mentorship and perseverance. His experience of starting small, overcoming substantial obstacles such as credit issues, and eventually achieving success highlights the learnable aspects of financial literacy.
Living frugally also plays a role, as people find pride not just in their earnings but also how they manage their wealth. Walker, reflecting on this lesson from his wealthy friends, succinctly stated, "Money isn’t loud," portraying how true financial success doesn’t necessarily manifest itself through lavish spending but rather through strategic investments.
With the new year on the horizon, many seek renewal not just financially but also personally—hoping to create lasting change. Whether it involves facing necessary hurdles head-on or finding fresh motivation for managing money, the future can look bright with informed choices.
Responsive individual planning combined with community support creates paths to recovery and success, fostering hope for all seeking financial assistance and stability.
