Goals that are aligned with your primary interests are more likely to succeed.
The information provided here is solely for educational purposes. NerdWallet, Inc. does not provide advisory or brokerage services, nor does it endorse or advise on the purchase or sale of any specific stocks, securities, or investments.
The beginning of a new year often sparks a boost in setting new objectives, including those related to finance.
According to financial specialists, one effective way to achieve these goals is to define them as precisely as possible and monitor your progress while being open to adjustments due to unforeseen circumstances.
“Knowing our destination makes tracking progress simpler,” states Sylvie Scowcroft, a certified financial planner and the founder of The Financial Grove in Cambridge, Massachusetts.
Scowcroft advises her clients to set explicit targets, such as eliminating particular debts, saving a designated amount monthly, or enhancing credit scores.
Here are additional recommendations from financial experts for setting your financial goals for 2025:
Identify Your Main Objectives
Attempting too much at once can be daunting. Instead, select your key priorities, suggests Cathleen Tobin, CFP and owner of Moonbridge Financial Design in Rhinebeck, New York.
She recommends focusing on significant, often emotionally charged goals to stay motivated.
“These are more compelling than mere numbers,” she explains. For instance, whether it’s preparing for retirement or saving for a house, start with these goals.
Detail Your Goals Thoroughly
Scowcroft notices that clients often falter by setting vague goals like “become financially better.” Instead, she advises specific actions such as “register for a budgeting tool and dedicate monthly time to understand my spending.”
Such specificity provides clear next steps. For example, if becoming debt-free is a priority, then aim to pay an additional $200 towards your debt each month.
Tobin suggests that naming savings accounts according to your goals can also be beneficial. For instance, an emergency fund could be renamed “Peace of Mind 2025,” which reminds you of its purpose with every deposit.
“This is more motivating than just ’emergency fund,'” says Tobin.
Monitor Your Achievements
Tracking your progress throughout the year is also crucial for successful goal setting, Tobin notes.
She compares it to weight loss: to lose 20 pounds by June, you need to lose about a pound a week for the first six months. Similarly, breaking down savings goals into smaller, weekly steps can be very helpful.
Set aside time for weekly or monthly self-checks to ensure you’re meeting these smaller targets, whether it’s checking your debt reduction or your credit score.
“Breaking it down into manageable steps really helps,” Tobin remarks.
Automate When Possible
If your goal is to save more, setting up an automatic transfer each month can help make this a reality, provided you have sufficient funds in your checking account.
“It reduces the mental burden,” says Mike Hunsberger, CFP and owner of Next Mission Financial Planning in St. Charles, Missouri.
He suggests starting with a small increase, such as enhancing your retirement savings by 1% and then gradually increasing it.
“Start small and scale up over time,” Hunsberger advises. “Because the increase is gradual, it likely won’t feel like it’s impacting your lifestyle too much.”
Be Flexible
“Stay adaptable,” Scowcroft emphasizes. “Part of it is being kind to yourself and not overly rigid.”
If unexpected expenses arise, you might need to pause your goal progress and reassess.
Changing your goal doesn’t mean failure, Scowcroft explains; it simply means adapting to life’s changes.
Collaborate with a Friend
Sharing your goals with a friend can enhance your chances of achieving them, Scowcroft suggests.
“Having an accountability buddy really helps,” she notes.
Set regular “money dates” with a friend to discuss your financial progress, tackle challenges, or even budget together.
“It’s a great excuse to catch up with a friend,” she adds.
Similar Posts
- EveryDollar 2025 Review: Unveiling the Best Budgeting Features!
- 2025 Sports Betting Trends: What’s Hot in the Gambling World?
- Unlock Success: Top 20 Traits to Seek in an Executive Coach!
- Slash Your Spending Now: Master the Underconsumption Trend to Save Big!
- Discover the Simplest Method to End Your Subscriptions: Find Out How!
An expert in international finance, Jessica provides actionable advice to secure export transactions and minimize financial risks.
