How To Tackle Your Budget Goals in the New Year

If one of your New Year’s Resolutions was to get a hold of your finances, now is a good time to check-in and make sure you are on the right track to tackle your budget.  Here are five tips on how to get ahead of your money-saving goals for 2025.  

Have a Goal

Having a budget goal is the number one thing that will help you track your finances.  You will be much more likely to change your spending habits with something specific in mind.  Whether you are wanting to save for a new car or a down payment on a house in 2025 or even 2026, setting a goal will greatly help you achieve your financial dreams.  

Track Spending

In order to successfully hit your financial goals, you will need to see where your money is going.  Tracking your spending habits is the best way to do so.  This is a great habit to keep not just the first few months of 2025, but the entire year. In the first month, you may want to physically write down each purchase you make in a spending tracker.  Many budgeting apps allow you to enter each transaction as you make it. You can record it in both the account and the category so you can stick to your budget and recognize your budgeting weaknesses. Dave Ramsey's Every Dollar app seems to be a popular one!   

Get Rid of Debt

Paying off debt using the snowball method can help you achieve your financial goals faster by focusing on paying off your smallest debt first, then using the money you were putting toward that debt to tackle the next smallest, and so on. This approach works well because it builds momentum, and these types of debts—whether credit cards, personal loans, or student loans—typically have higher interest rates than something like a mortgage. While being completely debt-free is the ideal goal (other than a mortgage and maybe a small balance on a card to keep it open), if that’s not immediately possible, set a target for how much debt you want to pay off this year, then calculate how much you need to pay each month to reach that goal. By starting small and working your way up, you can make steady progress toward becoming debt-free.

Turn on Automatic Payments

Turning on automatic payments is a great way to make sure that you are paying your bills on time and you can see what you are set up to spend for the month.  Most billing sites will give you the option to turn on automatic payments and some will even give you a discount for doing so! You should also consider scheduling a recurring amount of money to be transferred regularly from your checking account to a linked savings account⁠.  This is a great way to ensure a portion of your paycheck will be put into savings each month and help you gain interest. 

Don’t Spend “Found Money”

While we would all like to buy new clothes, household items or purchase a trip, it’s best to save any “found money”! The money you receive from gifts, tax returns, or raises should be put straight into savings or towards your debt snowball. This is an easy way to quickly build up your savings for an emergency fund or even a down payment on a home!

Whether your goal is to save for a new house or just have a steady emergency savings account, setting budget goals is the way to do it! With these five tips, you will be well on your way to achieving your financial resolutions. If you're looking for more tips on budgeting and money management, look up Dave Ramsey! He is well known for his proven methods of helping people get out of debt, build their emergency funds, and save money.