New Year's resolutions: financial stability
30/12/2025
The start of a new year gives us a chance to reflect on our goals and set new resolutions. And we all think about improving our health, learning something new or travelling more. On this occasion, we are going to set our financial resolutions for achieving a healthier financial situation, so as to not only have peace of mind and well-being but also to achieve other personal objectives.
Financial stability is not attained by chance: it is the result of deliberate decisions and sustainable habits, such as
- keeping a close eye on your income and spending,
- avoiding unnecessary debt,
- saving for important goals,such as education, a house or travel,
- preparing for future unforeseen expenses,
- investing in your future.
What might be some good financial resolutions?
- Preparing a monthly budget
Budgets are the most powerful tool for staying on top of your finances. With a budget you plan how your income will be distributed between fixed expenses, variable expenses, savings and investment. How can you prepare a budget?
- Record all of your income and expenses.
- If your economic situation so permits, use a proportional rule, such as 50/30/20:
- o 50% for needs (rent, food, transport)
- o 30% for items on your wish list (entertainment, travel)
- o 20% for savings
- You can get help from apps or computer programs.
- Setting up an emergency fund
This helps you deal with unexpected expenses without falling into debt. How to begin?
- Set a realistic goal
- Set aside a fixed amount each month
- Save your money in a separate, easily accessible account
- Reducing and controlling your debts
If not properly managed, debts can become a burden. This year, set out to reduce your debts and avoid new ones.
- Make a list with all of your debts along with the interest rates
- Make a priority of paying off those with the highest rate
- Consider the “snowball” technique: first pay off the most expensive debt in order to motivate yourself
- Avoid financing unnecessary spending with credit cards
- Saving for specific goals
In addition to your emergency fund, it is important to save for specific objectives: the down payment on a house, studies, travel or a business undertaking, for example.
- Set your goal and deadline
- Calculate how much you need to save each month
- Used scheduled-savings accounts or interest-bearing instruments
- Investing to make your money grow
Investing can be one of the tools for your net worth to grow. There are options for everyone – conservative and riskier. Still, never invest without being informed. Devote time to learning about risks and yields.
- Planning for retirement
Although it may seem far off, retirement should be part of your plans.
- Investigate what savings options best fit your circumstances
- Calculate what your future pension might be, and draw up forecasts of various scenarios; this way you can come up with a forecast more in line with your needs
Setting goals is easy; fulfilling them requires discipline. Here are some tips for meeting your financial resolutions:
- Set goalsthat are specific, measurable and attainable
- Track your progress monthly:review your budget and adjust it as necessary
- Look for support:get information from trusted sources
There are mistakes you can avoid:
- Not having a clear plan:without defined objectives, it is easy to lose your way
- Spending more than you earn:avoid over-indebtedness
- Not planning for a rainy day:without an emergency fund, any setback could destabilise you.
Conclusion
Having financial resolutions for the new year is an excellent opportunity to improve your quality of life. It's not only about saving, but also about developing habits that will allow you to attain your objectives of security and peace of mind. Begin with small steps, be realistic and remain perseverant.
