A December 2024 survey by the data intelligence website Statista asked over 1,000 U.S. respondents what their 2025 New Year’s resolutions were, and the very top one? Was to save more money. Millions of Americans know that they could probably be managing their money better but aren’t sure where to start, which is why we’re taking time to highlight 12 tips that will get you on the path to better financial health.
1.) Make a budget – and then stick to it.
This one is the most essential and also the least glamorous. The connotation of “budgeting” is boring and bland, bringing to mind a visual of staring bleary-eyed at endless spreadsheets. But it’s foundational; any path that leads to a more prosperous financial future starts with sitting down, setting a budget, and then keeping to it. It gives you a clear idea of where and what you’re spending, what you’re bringing in, and what you can afford. If it feels intimidating to try to do from scratch, these days there are a variety of secure sites – Quicken, Rocket Money, YNAB, etc. – that can help you to both build and maintain a monthly budget. And once you do that, you need to be meticulous about sticking to the spending and saving amounts you’ve set out.
2.) Get a handle on your spending.
This will be part of the budgeting process because it should give you a clearer idea of your spending habits. Where is your money going every month? What spending is unbudgeted and/or unnecessary? Are there places where you have been a little frivolous in a way that’s set you back? This doesn’t mean no spending on fun or entertainment ever, but it does mean making sure you are making clear decisions about where every dollar is going.
3.) Create specific financial goals.
Understanding the landscape of your financial situation can give you the data you need to make goals. Beyond paying off the basics like bills, rent, and groceries, you should write down what you’re aiming to achieve as part of your financial path. It could be a big purchase like a car or a house or saving for retirement; it could also something smaller and short-term like upgrading your phone or laptop or going on a weekend getaway.
4.) Watch your subscriptions and avoid signing on for unnecessary monthly bills.
Everything is a subscription these days. Seriously, everything. Television and movies, computer and phone applications, music, meal kits, book boxes – each one individually looks like a small expense. “It’s just $5 a month!” But taken altogether, those subscriptions can add up to a chunk of change that eats into your monthly budget. Sometimes you have current subscriptions that you’ve completely forgotten about, and you could be saving quite a bit by cancelling a few.
5.) Comparison shopping is your friend.
Impulse buying is the death of any budget. Even if it’s something you need, moving quickly and snatching up the first one you see could be costing your bank account. As fast as the world moves, you need to go slow. Embrace the process of comparison shopping, doing your research, making sure you’re getting the best out of your money.
6.) Use credit cards strategically.
Credit cards can be an excellent tool for building your credit score and benefitting your overall financial health – but you have to use it strategically. Credit cards can get you into trouble if you use them to live outside your means and rack up thousands of dollars you can’t pay back. But if you limit your purchases and don’t spend more than you can pay off each month, it can be a perfect way to demonstrate financial integrity.
7.) Reduce the number of payment options you can access.
Today’s world has given us so many options to make our lives easier, more convenient, and that includes streamlining our access to payment options. It went from writing cheques at the cash register to swiping a card to now just tapping your card or your phone (thanks to mobile wallets). Browsers will save your payment information and autofill it for your convenience, so all you have to do is click and go. But we pay for this on the budgeting end. Easy payment access means you’re more likely to make impulsive, unnecessary purchases without thinking through the consequences.
8.) Build up a savings fund.
You need a savings account at your bank, one you can’t quickly access with a card, and you need to be contributing to it regularly. When you’re working on that budget we mentioned above, build a portion of monthly savings into it; don’t just tell yourself you’ll save some of whatever’s leftover. Even if you don’t have a specific goal right now that you’re saving for, setting aside $50 or $100 can be a big benefit if you have emergency or unexpected expenses.
9.) Invest in your future (if you are able).
Your first priorities are to get your budget under control and build up your emergency savings funds, but once you’ve achieved that, you should consider making some investments. Finance guru Dave Ramsey recommends taking 15% of your gross income and investing it into retirement accounts like Roth IRAs or 401(k). It's important to remember, however, that investment comes with risk. Don’t put more into your holdings than you’re comfortable with, and always keep in mind that the stock market is a long-term game. You can ride out momentary dips as long as the long-term trajectory is upward.
10.) Reduce your debt and avoid incurring more.
If you’re already in significant debt, paying it off is going to have to be a primary priority of your budget. We’ve talked elsewhere on WithU Loans on how to start rebuilding your credit and paying off debt, so we’re not going to get into the specific steps you can take, but know that you should move it to the top of your to-do list. And once you dig yourself out, avoid accruing any more. Treat it like a food allergy; you don’t want to be anywhere near it.
11.) Leverage new financial technology.
Today’s world has a wealth of tools and apps you can utilize to help get a handle on your finances. Budgeting apps can help you organize your income and spending and send you alerts about your accounts. Your local bank may have an app that can make cheque deposits, account notifications, and transfers easy on the go. Others can manage your subscriptions and suss out the ones you’ve forgotten about or don’t need. Automatic payments for all your bills help ensure that you don’t let one slip through the cracks and get into a bind. All of these tech tools can be incredibly handy when it comes to managing your money.
Your Path to Better Financial Health
It is never too late to improve how you manage your money. Even if your past approach can be affectionately described as “chaotic” or “flying blind,” the steps above can get you started, helping you build a foundation for using your money wisely and improving your situation. You can also reach out to partners like WithU Loans who are here to listen to your story and help you stay on track with your finances.
