Resolution 2025: Don’t Overspend

Managing your money can feel overwhelming enough — the last thing you want is another project for your to-do list. But, as the year comes to a close and you’re making your New Year’s resolutions, take a breath, and consider whether you’re happy with three core elements of your financial life: spending, debt, and investing for the future.

They’re big topics, but we’re going to help keep it super simple, dedicating one article to each. It’ll only take a minute, and could plant the seeds for big changes in 2025.

Up first, spending.

It’s easy to feel guilty about overspending on holiday gifts, travel, food, and fun. Maybe you feel a pit in your stomach as you take out your credit card yet again. Perhaps you find yourself casually confessing to friends that you’ve blown your budget. Or it’s a sad secret you keep to yourself.

No matter how much you make and whatever the season, if you’re not in control of your spending, it’s controlling you — burdening you with credit card debt, preventing you from saving for the long term, or keeping you from doing the things you love. And taking the reins may not be as hard as you think, whether you call it a budget or not.

The first step is to find real motivation. Whether you’re saving to buy a house, treating yourself to a trip to Europe, or just not going into the red, setting goals will help you stay strong when you feel tempted to spend.

Next, take an inventory of your expenses and make a list of wants versus needs. Using an app can help. (Here’s SoFi’s free Relay app, which automates budget tracking and goal setting.)

Then, consider the various methods for budgeting and choose whichever one seems the most practical for you to actually use. You can “pay yourself first” by routinely depositing a set amount of money into your savings or investment accounts before paying your bills. You can go with the 50/30/20 rule, where you allocate your income into three buckets: 50% needs, 30% wants, 20% savings. Or if impulse buying is your Achilles heel, try the 30-day rule.

So what? Juggling expenses is hard work. Persistent inflation and 2024’s tenuous job market have only raised the stakes. If you’re unhappy with how much you’re spending or saving, consider making a fresh start in 2025.

And don’t worry if you have a slip-up — using a budget is a commitment to a frame of mind as much as it is a technical exercise. Building healthier financial habits takes practice, like anything else. Reading this means you’re already on your way.

Related Reading

•   How to Make a Budget in 5 Steps (SoFi)

•   Steal These Money Expert’s Tips for Cutting Holiday Costs (CNET)

•   Loud Budgeting: The New Money Saving Technique (Equifax)

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