As the new year begins, it’s natural to set financial goals that promise a brighter, more secure future. In fact, 60% of Canadians reported having a financial resolution for 2024, be it focusing on saving, paying off debt, or cutting back on spending. Staying committed to these resolutions, however, can be challenging with a study by Time2Play finding that Canadians adhere to their New Year’s resolutions for an average of 4.7 months, with nearly 70% failing to maintain them. In this article, we share how to stick to your financial resolutions in 2025 and build lasting habits that work.
1. Set SMART goals
Financial resolutions are more achievable when they’re specific, measurable, attainable, relevant, and time-bound (SMART). For example:
- Specific: “save $5,000 by December 2025.”
- Measurable: Track your savings monthly.
- Attainable: ensure the goal fits your income and expenses.
- Relevant: align with your long-term financial aspirations.
- Time-bound: Set a clear deadline.
We recommend using our free Resolutions and Goals Tracker to keep on top of your financial goals in 2025.
2. Create a realistic budget
A budget is the cornerstone of financial success. Review your income, expenses, and financial goals, then allocate funds to essentials, savings, and discretionary spending. Use tools like our free budget template to monitor your progress and make adjustments as needed.
3. Automate your savings
Automation removes the temptation to spend money meant for savings. Set up automatic transfers to a savings account or retirement fund right after payday. This “pay yourself first” strategy ensures you consistently contribute toward your goals.
4. Cut back on unnecessary expenses
Analyze your spending habits to identify areas where you can cut back. Whether it’s cancelling unused subscriptions or reducing takeout meals, small changes can add up significantly over time.
5. Prioritize debt repayment
High-interest debt can hinder financial progress. Focus on paying down debts using strategies like the snowball (starting with the smallest balance) or avalanche (starting with the highest interest rate) method. According to our expert Licensed Insolvency Trustees, tackling high-interest credit card debt first is often the most effective way to regain control of your finances. If you’re overwhelmed, consider seeking professional debt relief options by speaking to a Licensed Insolvency Trustee.
6. Build an emergency fund
An emergency fund acts as a financial safety net, helping you avoid debt when unexpected expenses arise. Aim to save three to six months’ worth of living expenses in a separate, easily accessible account. Our Licensed Insolvency Trustees recommend starting small, such as saving $500, and gradually increasing your fund over time.
7. Stay accountable
Share your financial goals with a trusted friend or family member who can help keep you accountable. Regularly update them on your progress and celebrate milestones together. For additional support, consider joining online financial accountability groups.
8. Educate yourself
Financial literacy empowers you to make smarter decisions. Read books, listen to podcasts, or take courses on personal finance to deepen your understanding and stay motivated. Spergel offers free resources on budgeting, debt management, and financial planning in our Learning Centre to help you stay informed.
9. Review and adjust
Life changes, and so should your financial plan. Set aside time each month to review your goals, track your progress, and make necessary adjustments. Flexibility ensures you stay on course despite unexpected challenges.
10. Seek professional help
If you’re struggling to make progress, don’t hesitate to consult a Licensed Insolvency Trustee. At Spergel, we specialize in helping Canadians overcome financial challenges and achieve their goals. With over 30 years of experience and thousands of successful cases, our team has the expertise to guide you through personalized debt relief solutions.
How to stick to your financial resolutions in 2025: FAQs
Here are some of the most common questions we receive on sticking to your financial resolutions:
How do you set financial goals for the future?
To set financial goals for the future, start by defining clear, specific objectives that are meaningful to you, such as saving for a home or paying off debt. Break these goals down into smaller, achievable steps with deadlines, and make sure they are realistic based on your current income and expenses. Track your progress regularly and adjust as needed, ensuring your goals are adaptable to life changes. Lastly, prioritize your goals to focus on the most important ones first, and be consistent in your efforts to reach them.
How to financially plan for the new year?
To financially plan for the new year, begin by reviewing your current financial situation, including income, expenses, debt, and savings. Set clear, achievable financial goals for the year, such as paying off debt, building an emergency fund, or saving for a big purchase. Create a realistic budget that aligns with these goals, and track your spending to stay on course. Consider automating savings and debt repayments to ensure consistency. Lastly, review and adjust your plan periodically to stay adaptable to any changes or unexpected expenses throughout the year.
How can I make my financial situation better?
To improve your financial situation, start by creating a budget to track your income and expenses, which will help you identify areas where you can save or cut back. Focus on paying down high-interest debt, as this can free up more money in the long run. Consider automating your savings to ensure consistent contributions toward your financial goals. Build an emergency fund to cover unexpected expenses and protect yourself from going into debt. Lastly, educate yourself about personal finance to make informed decisions and seek professional advice if needed to create a tailored plan for your situation.
What are the most common financial resolutions?
The most common financial resolutions include saving more money, paying off debt, creating and sticking to a budget, building an emergency fund, improving credit scores, and planning for retirement. Many people also focus on reducing unnecessary spending, investing in their future, or achieving specific goals like saving for a home or a vacation. Ultimately, these resolutions aim to improve financial security and long-term stability.
Start 2025 strong with Spergel – sticking to your financial resolutions is easier with the right support. Contact Spergel today for a free consultation and take the first step toward financial freedom in 2025. Our Licensed Insolvency Trustees will work with you to create a customized plan that aligns with your goals. Together, we can help you achieve your goals and build a secure future.
