New Year’s resolutions often fade, but financial freedom requires lasting change. That’s why our Milestone approach focuses on setting clear, achievable goals and building sustainable habits—not fleeting promises. With the help of these tips, you’ll create financial goals that last all year long, not just January.

Set Realistic Goals

1. Understand Your Spending Habits

Before setting any financial resolutions, you need to have a clear understanding of your current financial situation. Take the time to review your income, spending, debt, and savings for the past year.

Use financial tools like Goals & Budgets then visit the “Trends” menu to help see what you’re spending the most on each year. Maybe you didn’t realize you had subscriptions that you’re still paying for or spend more on coffee each month than expected. This will help you break down and categorize purchases like bills, food, shopping, entertainment, and even show your income compared to expenses in a chart throughout the year.

2. Create a Realistic Budget

Now that you’ve analyzed your financial trends over the last year, this will help you make informed decisions to create a budget. Next, you’ll need to look at the average amount you’re spending in total each month compared to your income. By doing so, you can identify whether you have extra funds to allocate toward new financial goals or if adjustments are needed in your spending habits to focus on eliminating debt or building wealth in the year ahead.

3. Define Clear and Specific Goals

It’s easy to say in the New Year that you want to "save more money" or "get rid of debt,” but without a specific, measurable goal, you likely won’t stick to your goal throughout the year. Instead, set clear and specific goals like "save $1,000 for an emergency" or "pay off $2,000 in credit card debt by the end of the year." Specific goals provide a clear target and make it easier to track progress.

If you have multiple financial goals, trying to reach them all at once could be overwhelming. Try to prioritize your goals based on their importance and urgency, starting with one or two and revisiting your goals as the year goes on.

Breaking down your financial goals into smaller, short-term milestones can make them more manageable. For example, if your goal is to save $5,000 in a year, aim to save $417 per month. Celebrating these small achievements can keep you motivated and on track.

Stick to Your Goals

1. Automate Your Savings

One of the most effective ways to stick to your financial resolutions is by not letting yourself forget! An easy way to do this is by automating your savings. Set up automatic transfers from your checking account to your savings account to set money aside each time you get paid. You could also set up your direct deposit so a portion of your paycheck goes directly into your savings. That way you can consistently save money without having to think about it. If one of your goals is to pay down debt, you can also use a debit card round up program like Change it Up to automatically put your rounded up purchases to pay down your loan balance.

2. Track Your Progress

Regularly track your progress to stay motivated and keep yourself accountable. Use Goals & Budgets to automatically track your progress to goals, your income, and even recurring expenses like subscriptions. You can also create a visual chart where you can draw your progress to reaching your goals if you want to check milestones off as you go! Seeing your achievements can provide a sense of accomplishment and encourage you to keep going.

3. Adjust Your Budget as Needed

Keep in mind that it’s ok to adjust your budget and expenses as needed throughout the year to help you reach your goals. If you consistently overspend in a category, see where you can spend less in another area to ensure you have the money available to meet your needs. Be flexible and willing to adapt your budget to changing circumstances or unexpected expenses.

If you’re newer to budgeting, get into a pattern of reviewing your budget each pay period to see where you can adjust. As you get comfortable over time, we recommend reviewing your budget monthly to help you be confident in knowing exactly where each dollar is being spent and how to use your money. Plus, this will always help you stay on track of new or unexpected expenses and account for these costs in the future.

4. Reward Yourself

Just because you have financial goals to reach, doesn’t mean you’re only allowed to buy necessities—as long as you budget accordingly. If you start out with a budget or goals that are too strict, you might get burnt out and lose motivation for the future. While you want to be disciplined and reach your goals, still allow a small portion of your budget to go to “wants” or rewards for yourself when you reach a certain milestone. You deserve to celebrate your accomplishments!

Setting and sticking to a financial resolution can be challenging, but with realistic goals, a clear budget, and adjusting course as needed, you’ll have the confidence to keep going! If you aren’t sure what your next step is on the journey to Financial Freedom, find out your Money Milestone. This can help you see where you’re at with your finances, show you your next goal, and create a personalized plan to help you reach those goals!