While most Americans expressed regrets about certain money decisions they made in 2024, financial advisors recommend learning from past mistakes and focusing on 2025 goals.
According to an October NerdWallet survey by The Harris Poll, 69% of Americans have financial regrets in 2024. Whether they lost steam implementing New Year’s resolutions or fell short of their investment goals, most wish they handled their assets differently.
It is a poignant warning following the busiest time of year. The holiday season is marked by heightened consumption, with abundant shopping, parties, traveling, and feasting. While a joyful time, it can cause financial stress. Yet, it can be a time to reflect and assess the year’s wins and losses and plan ahead for the next twelve months the new year can bring.
This time last year, as Americans looked ahead to 2024, many aspired to change bad financial habits. In late 2023, Fidelity surveyed over 3,000 U.S. adults, revealing consumers’ top three financial resolutions in 2024: save more (41%), pay off debt (38%), and spend less (30%).
Some people will have made substantial progress. After all, a significant minority of NerdWallet survey participants did not have money regrets this year.
What separates those who achieve their goals from those who are disappointed? Financial advisors offer insights on setting reasonable resolutions to deliver impactful results in 2025.
Lights, Camera, Action!
Goals can be motivating to get one started on a change, yet financial advisors across the country see taking action as more important.
When asked about Americans’ previous financial resolutions, Ty Johnson, Financial Planner at Peak Financial Management, remained skeptical of their impact.
“These resolutions are noble; however, like most New Year’s resolutions, they are likely destined to fail,” said Johnson. “Typical New Year’s resolutions are too vague to be motivating and lack an actionable plan, dooming them to be forgotten about by February.”
“Instead, I encourage people to turn their New Year’s resolutions into S.M.A.R.T goals and then come up with an actionable plan to give them the best chance of success,” Johnson continues. “For example, say your New Year resolution is to ‘save more money,’ or ‘save $12,000 by December 31st by direct depositing $500 per paycheck into a savings account’ – now we’re talking.”
Cecil Staton, Founder of Arch Financial Planning, emphasizes using tools to make reaching such goals easier.
“New Year’s resolutions around saving, spending, and debt reduction are most effective when they’re realistic, measurable, and supported by accountability,” Staton says. “For example, automating savings, setting reminders to review financial goals, or tracking your spending can help ensure consistent progress.”
Credit Crunch
Some financial advisors emphasize the importance of managing credit card usage properly.
Indeed, the NerdWallet survey reports around 1 in 5 Americans regret either taking on too much credit card debt this year or not improving their credit score.
“Stop putting money on your credit card if you can’t pay it off at the end of the month,” Nycole Freer, Founder of Eden Financial. “And, if you are making minimum payments on your credit card with a high balance, it’s going to take forever to get out of debt. Consider a debt counseling program to help you get out of the situation and pay off your debts in about 4.5 years.”
Indeed, many Americans have been stretched to their financial limits after enduring inflation and high interest rates and are using credit cards to get by.
According to Bankrate’s latest Credit Utilization Survey, nearly 40% of credit card holders have either maxed out a credit card or come close since the Federal Reserve began its monetary tightening policy in early 2022. Specifically, 20% of respondents reported fully maxing out a card, while 17% indicated they had approached their credit limit.
Plan Ahead
Resolutions can help people develop financial plans, but when it comes to making real progress, people need structures to keep them on course. To this end, advisors emphasize the importance of systems for achieving New Year’s goals.
“Make a spending plan and stick to it,” says Johnson. “There are so many great budgeting tools available today. If you want to take control of your finances, then get on a budget.”
Many people need more than an app, and that’s where the cost of hiring a financial advisor may pay dividends.
“I often compare saving money to losing weight,” says Michael Rosenberg, Founder of Diversified Investment Strategies.
“Many people resolve on January 1st to lose weight but don’t follow through, and the main reason is lack of accountability,” Rosenberg adds. “That’s why programs like Weight Watchers are so successful — not because they have a magic formula, but because they provide structure and accountability. Similarly, if you’ve made repeated resolutions to get your finances in order but haven’t succeeded, working with a financial advisor could make all the difference.”
No matter the goal, one thing is clear: a New Year’s resolution needs a clear action plan. By setting specific, measurable goals and creating actionable plans, meaningful progress is within reach. With the right support and strategies, 2025 can be the year to turn resolutions into lasting change.
