Got Financial Stress? Resolve It Away in 2025.

Thanksgiving has been over for a couple of months, but let’s talk turkey about New Year’s resolutions. OK, terrible pun, but the truth is, most people won’t stick to their resolutions.

Data tells us that only 9% of Americans who make resolutions will complete them. In addition, 23% of people will abandon their resolutions by the end of the first week, and 43% will quit by the end of January.

If you’ve found yourself in this group year after year, don’t despair. Though there are many reasons why people quit, the main reason is that we tend to make our resolutions too general, without defining the actionable steps needed to achieve our goals.

For example, maybe your resolution is to “get in shape.” That sounds good in theory, but in reality, it’s too general and abstract, making it hard to gain any traction. It’s much better to create smaller, actionable steps to help you achieve the overall goal.

So, instead, you might commit to going to the gym three days a week, creating a meal plan and a shopping list of healthy foods, and setting regular check-in dates on your calendar to monitor your progress.

The same concept applies when it comes to getting your financial life in shape. Instead of just resolving to do so, you’ll have a better chance of achieving your goal if you identify some concrete, actionable steps to take.

Happy finances, happy life

Being proactive about your finances creates what James Clear, the author of Atomic Habits, calls an “upstream habit,” a habit that causes a lot of other good things to happen.

Here’s some good news: The benefits that come from taking concrete steps toward your financial resolutions aren’t just financial.

This is reinforced by a study from the National Institutes of Health, which shows that people with a greater level of financial well-being are “less stressed, more motivated to manage their money, have better family relationships, and are physically and mentally healthier.”

It’s all about setting tractable and trackable resolutions, then creating a process that removes friction and improves your chances of achieving your goals.

Make it easy on yourself: Set it and forget it

Contributing to your 401(k) is one of the most powerful financial moves you can make, providing you with a triple benefit. Your pretax contributions reduce your taxable income for the year, they grow tax-deferred until you withdraw them in retirement, and, if your employer offers matching, it essentially gives you free money.

For a Roth IRA, you get the triple benefits of tax-deferred growth, company match, and tax-free withdrawals after age 59½, as long as you’ve had the account for at least five years.

Automating your contributions to retirement accounts like 401(k)s is a smart strategy that aligns perfectly with your New Year’s financial resolutions. By setting up automatic contributions, you can embrace a set-it-and-forget-it approach that minimizes the risk of resolution failure.

Start by contributing up to your company’s match, and if you can, adjust your contributions so you max out. In 2025, that means $23,500 for those under 50. For those over 50, you get an additional $7,500 catch-up amount, and for those ages 60 to 63, there is now a super catch-up that allows for another $3,750 contribution, for a total of $34,750.

Pay yourself first

If your employer doesn’t offer a 401(k) plan, you can still contribute up to $7,000 to a traditional or Roth IRA, plus $1,000 if you’re aged 50 or older. If you get paid by direct deposit, you can automate those payments as well.

Most employers will let you split your net pay across multiple accounts, either by fixed amount or percentage. So you might have the bulk of your pay go to your savings or checking accounts, then have a percentage of each check go to your IRA. But automation isn’t just limited to your IRA contribution.

If you need to bulk up your emergency savings, which should be between six to 24 months of pay, depending on your situation, you can automate a contribution. And if you’re fortunate enough to have your retirement accounts and emergency savings maxed out, you can automate a payment to a brokerage or investment account.

Relentlessly attack debt

In the Edelman Financial Engines 2024 Everyday Wealth in America Report, we found that 49% of respondents said they carry debt on their credit cards each month, and 44% said that credit card debt was their biggest barrier to building wealth.

Debt can also be a major source of stress – one that prevents you from reaching that greater sense of financial well-being that we talked about earlier. The new year is a great time to resolve to eliminate your debt, and once again, automation is the key to your success.

There are a number of different strategies for attacking debt, many of which, oddly enough, have snow-related names, such as the snowball, avalanche or snowflake method. Each one falls into the set-it-and-forget-it category.

For example, with the debt avalanche method, you set up minimum payments across all your credit cards and loans, excluding mortgage and car loans, and then take any extra money you have and put it toward the highest interest rate debt. Once that is paid off, you redirect those funds to the next highest interest debt and continue this process until all debts are cleared.

Your planner can help you decide which one is optimal for your individual situation.

Prioritize your financial health

Once the busy holiday season is over, like many Americans, you may use the new year as an opportunity to sit down and schedule your annual physical, teeth cleanings and eye exam – all the things we do to prioritize our physical health. It’s no different for your financial health.

Just as your physician, dentist and optometrist are the professionals you rely on to keep you healthy, so too can you rely on your planner to help you with your financial health.

They’re your partner in all things financial. So make a resolution to call your planner today, maybe right after this article, and schedule a time to meet.

Then take some time to review the past year and make a list of any financial or life changes, big or small. Did you switch jobs, have children, get married (or divorced), move, buy a car and so on? Hopefully, you reached out to your planner when these changes happened, but if you didn’t, make sure to let them know about them at your meeting – and resolve to reach out in real time if new changes happen in the coming year.

When you do meet with your planner, they will review your plan to see if any changes are needed in order to meet your financial and retirement goals. And if needed, they can help you review your insurance coverage, your beneficiaries and even your banking and personal information to ensure everything is still applicable. And most importantly, they can help you review the prior year to see what you did well and identify areas where you might want to adjust your strategy.

There’s never been a better time

The new year is the perfect time to take charge of your financial future. By setting clear, actionable resolutions and automating your savings and debt repayment strategies, you can pave the way for a more secure financial life.

Remember, just as you prioritize your physical health with regular checkups, your financial health deserves the same attention. Your planner is here to guide you through this journey, helping you navigate changes and optimize your strategies for success.

Don’t wait – contact your planner today to schedule a meeting and start making your financial resolutions a reality.