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Evercore ISI Senior Managing Director Mark Mahaney Joins ‘Varney & Co.’ to break down their best actions ahead of the new year.
The high inflation of recent years continued to wreak havoc on many Americans’ wallets in 2024, but the start of the new year offers a great opportunity to set new financial goals to get back on track.
“As we head into 2025, the nation’s financial landscape calls for proactive solutions to address growing concerns like inflation and debt,” said WalletHub analyst Chris Lupo. FOX business. “Top financial resolutions for 2025 should focus on smart budgeting, saving and paying down debt.”
Many Americans set new financial goals at the start of the new year (iStock/iStock)
Here are some of the top financial New Year’s resolutions for 2025, according to WalletHub:
1. Make a realistic budget and stick to it
“With Americans carrying nearly $1.3 trillion credit card debtsetting realistic budgets is imperative,” Lupo said.
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2. Save more money
Lupo says saving is also key, as many households don’t have an emergency fund. He suggests starting small with the goal of saving two months’ worth of take home and building up a year’s worth.
“Don’t forget to maximize your earnings: 5% more APY on online savings accounts makes it worth switching banks,” he noted, adding that certificates are also worth considering of deposit (CD) of high yield.
Ramsey Solutions founder and CEO Dave Ramsey discusses how Americans can prepare financially for retirement in “The Bottom Line.”
3. Explore ways to refinance high interest rates
High-interest debt is expensive, so Lupo says to consider tools like balance transfer cards or debt consolidation loans to reduce costs.
4. Pay off 25% of your credit card debt
The average American currently has more than $10,000 in credit card debt, and the sooner it can be addressed, the better. WalletHub says it’s important to get serious, but suggests it’s probably best to start small by setting a goal to eliminate a quarter over the course of the year.
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5. Fight against inflation
Look for ways to cut costs in everyday expenses, such as buying everything you buy, taking advantage of deals and coupons, turning down the thermostat, buying in bulk, and paring until prices drop.
WalletHub suggests fighting high prices by shopping around and finding the best price on everyday items. (Paola Chapdelaine for The Washington Post via Getty Images/Getty Images)
WalletHub has 10 more suggestions for 2025 financial resolutions, including paying bills right after you get your paycheck, making sure you have sufficient insurance for a catastrophe, protect your identity, improve your financial education and even find a better job.
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“Focus on financial and healthy literacy money habitslike paying bills right after payday,” Lupo said. “These steps will help make 2025 a financially healthier year.”
