6 Financial Resolution Mistakes to Avoid in 2025

Smiling woman managing finances at home, using a laptop for budgeting and holding a document.

If you're looking to up-level your finances in the new year, you aren't alone. Among those who made at least one New Year's resolution in 2024, 61% zeroed in on money, according to the Pew Research Center. But making financial resolutions is only the first step. You'll also need to make a plan, stick with it and course-correct as needed. Understanding these six financial mistakes can help you avoid common pitfalls—and bring your money goals to life.

Mistake 1: Not Writing Down Your Resolutions

This may sound small, but putting your financial resolutions down on paper could improve your odds of being successful. One study from Dominican University of California found that people who wrote down their goals were 42% more likely to achieve them when compared to folks who simply thought about their goals. The reason for this isn't exactly clear, but it stands to reason that goal-writing might help you:

  • Clarify what you want to focus on.
  • Get specific with your goals.
  • Motivate you to take action.

Mistake 2: Not Setting SMART Goals

The way you go about making your financial resolutions is important. That's where SMART goals can come in handy. These goals are:

  • Specific: The more specific your goals, the easier it is to make a strategy. Instead of saying, "I want to be better with money this year," try something like, "I want to add $2,000 to my emergency fund" or "I want to pay down $1,000 of debt."
  • Measurable: How will you know if you're moving toward your goal? Get clear on how you'll track your progress and measure your success.
  • Achievable: How will you achieve your financial resolutions? If your goal is to save 10% of your earnings, for example, you could set up automatic monthly transfers to your savings account.
  • Realistic: Set yourself up for success by making goals that feel realistic. You want your resolutions to be ambitious but not completely out of reach. Set goals that feel doable in the year to come.
  • Time-bound: The idea is to set deadlines for yourself. You may have a big financial goal for the year that you can break down into smaller milestones on your calendar.

Mistake 3: Not Having an Accountability Buddy

Remember that study we mentioned earlier? While those who wrote down their goals were more successful than those who didn't, goal attainment was even higher for folks who made action commitments—and then shared them with a supportive person. The highest-achieving group sent weekly progress reports to a friend.

Knowing that someone is waiting to hear about your progress can light a fire under you to take action. You can also do the same for others. Here are some potential ways to find an accountability buddy or group:

  • Run the idea by a trusted friend and see how they receive it.
  • Look within a group you already belong to. That could be a book club, a Facebook group for people who do similar work or a local group for parents.
  • Check for online programs. There are plenty of coaches out there who specialize in goal setting and can connect you to a virtual accountability group. Just do your homework to ensure you're working with a coach who has good reviews.

Mistake 4: Not Working With a Financial Professional

A financial professional can be a great resource, especially if you feel overwhelmed by your situation—or you just want a little extra help achieving your goals. A financial advisor can guide you with:

  • Personalized investing advice
  • Long-term financial planning, including retirement planning
  • Strategies to minimize your taxes
  • Risk management

Working with a certified credit counselor is another option. They generally do not provide investment advice, but they can offer guidance on money management—whether that's paying down debt, creating a budget or improving your credit score. The National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA) are good places to start.

Mistake 5: Giving Up Too Easily

Enthusiasm for your goals may run high at the beginning of the year, then sputter out as the months go on. Staying committed for the long haul is critical. Here are a few tips for sticking to your resolutions:

  • Break your goals into smaller action items. Having these short-term milestones on your calendar can give you the motivation you need to keep going. It can also take the intimidation out of a big goal and make it feel more attainable.
  • Celebrate the wins. There's nothing wrong with treating yourself, especially if you save those rewards for when you reach a milestone. Be sure to pick something that's aligned with your budget. For example, you might gift yourself concert tickets to see your favorite band—but only if you meet your next short-term goal.
  • Expect setbacks. The path to meeting your goal might not be linear. If it sometimes feels like you're taking two steps forward, one step back, don't give up. You're still making forward movement.

Mistake 6: Not Adjusting for Major Life Changes

You don't need us to tell you that life happens. Sometimes that's a financial surprise, like an unexpected car repair. Other times, your life may simply move in a new direction. That might look like:

Any of these things could disrupt your financial resolutions, so you may need to make adjustments as needed. That might mean temporarily pausing one goal in favor of another, or modifying how much you're saving. That's okay. What matters most is continuing to make progress toward a stronger financial future.

The Bottom Line

Being aware of these common financial mistakes—and how to avoid them—can help you achieve your money goals this year. It comes down to being intentional with your financial resolutions, and keeping your eye on the prize when you want to give up. If improving your credit is on your list, you can check your credit report and FICO® Score for free with Experian.