You know the drill: The ball drops, confetti flies, and you — along with 45% of Americans — sail into the new year with a resolve to save more money. You may stick to your resolution for a few weeks or a couple of months, but then, life happens. Regardless of how enthusiastic you felt on Jan. 1, the good financial habits you wanted to adopt end up falling by the wayside.
Before you throw in the towel on resolutions completely, consider a different approach. With the right strategy, you can set financial resolutions you’re more likely to achieve.
Before you blame yourself, know that there are many reasons why it can be tough to accomplish your financial resolutions. Here are some of the biggest culprits:
“Saving more” and “increasing your income” may sound like great goals, but they’re too vague.
For example, if you save an extra hundred bucks over the course of the year, did you meet your goal? If you get a 3% raise, will you be happy? Maybe, but what matters is the specific outcome you want.
When you’re too vague, you don’t have a concrete goal to work toward, and tracking your progress can be nearly impossible.
Aiming high is great, but when you’re setting financial resolutions, make sure your goals are reasonable and attainable.
For example, if you’re saddled with student loan debt and barely getting by, it probably isn’t helpful to set a goal to pay off your entire balance or save $50,000 next year. If you set goals that are too far-fetched, you’re more likely to give up before you make any noticeable progress.
Don’t set an arbitrary goal just because it’s what you think you “should” do. For example, you may feel pressure to buy a house, go on a fancy vacation, or upgrade your car. But if those things don’t matter to you, you’ll struggle to achieve them.
Have you ever heard the quote, “A dream without a plan is just a wish”? This sentiment explains why simply making a financial resolution isn’t enough.
Even if you’ve chosen the right goals, you can’t achieve them without a plan. This doesn’t mean you need to know everything up front, but at the very least, you need to know the next right step.
If you’re relying on motivation and inspiration to strike, it may take a lifetime to reach your goals. Waiting for these fickle states of mind probably isn’t enough to reach your goals. Instead, you may need systems or people to hold you accountable.
Instead of announcing an arbitrary goal and crossing your fingers that you reach it, try these steps to set financial resolutions that stick.
If you’re happy renting, would you devote your energy to saving for a house? Chances are, it wouldn’t be your most pressing goal. Keep this in mind when setting New Year’s financial resolutions.
Start by thinking about what you currently value — travel, family, or philanthropy, for example — and use these to guide your goal-setting. Maybe you’re living paycheck-to-paycheck and your biggest priority is building a small financial safety net. If that’s the case, saving $500 might be a great place to start.
Read more: What is values-based budgeting, and how does it work?
After you’ve brainstormed what matters to you, put parameters around your goal to make it more specific. For example, instead of “building an emergency fund,” you could specify that you want to save three months’ worth of essential expenses in a high-yield savings account by the end of 2026.
Once you’ve gotten really specific with your resolution, you can break it down into manageable steps. This helps you celebrate progress and know whether or not you’re on track to reach your goal.
Using the example above, say your goal is to save $15,000 in a high-yield savings account by the end of 2026. Breaking this down into more manageable chunks could mean saving $1,250 per month or roughly $290 per week.
You know how it goes: You start off motivated and organized on Jan. 1 — but a few weeks in, life gets busy, and your goals are put on the back burner. To avoid this trap, automate your way to your financial resolutions however you can.
For example, if your goal is to save $1,250 per month for your emergency fund, you could automate a monthly $1,250 transfer from checking to your high-yield savings account. Or if your goal is to have a monthly money meeting with your spouse, set up a recurring calendar invite and automatic reminder emails.
Read more: How to merge finances with your spouse after getting married
Finally, don’t keep your resolutions to yourself. Ideally, you can share your goals and progress with a partner, friend, family member, or financial professional. Having someone along for the ride can do wonders for your success (if you’ve ever had a gym or running buddy, you know how motivating it can be).
Have a conversation about your resolution with someone you trust and plan check-ins throughout the year. Or, if you want a higher level of accountability and support, consider hiring a financial coach or adviser.
Now that you know how to create New Year’s financial resolutions and actually make them stick, you may be ready to set some goals for 2026. If you’re not sure where to start, consider the following ideas (but remember, only commit if they’re relevant to you):
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Build an emergency fund: Having cash set aside for when life inevitably happens can keep you afloat financially, and without having to take on high-interest debt. Whether you lose your job, your car breaks down, or you need to book a last-minute flight, having three to six months’ worth of essential expenses in an emergency fund can make all the difference.
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Increase your retirement contributions: Retirement won’t fund itself, and the sooner you contribute, the less you’ll end up needing to save thanks to the power of compound interest. That’s why increasing your retirement contributions — even by a percentage or two — can make a huge difference in the long run.
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Pay down high-interest debt: If you’ve got credit card debt or high-interest loans, they’re likely eating up a good chunk of your budget. If you can prioritize paying off that debt, you’ll have more breathing room to save, invest, and spend every month.
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Save for a vacation: How about a fun financial resolution? Maybe you want to save for a vacation and enjoy knowing you won’t come home to unpaid credit card bills. Saving up and paying in cash will make that vacation all the more relaxing.
Whether you’re trying to save your first thousand dollars or your first million, make 2026 the year you stick to your financial resolutions.
For a better chance at success, choose goals that are specific and relevant to you, break them into smaller steps, automate whatever you can, and find some accountability. Regardless of your goals, the right approach can help you build a healthier financial future.