20 New Year’s Resolutions for Your Finances

Every new year brings an opportunity to take control of your finances. Whether you are looking to save more, eliminate debt, or start investing, setting clear resolutions can push you closer to financial freedom. Below, we’ve put together 20 practical and achievable financial New Year’s resolutions to help you take control of your hard-earned money.

SAVING AND BUDGETING:

1. Set or Revise Your Budget

If you haven’t been budgeting, now is the perfect time to start. A clear budget is the foundation of any financial plan. Take the time to write down all your income sources and regular expenses. Then, sit down with your family to identify areas where you can cut back. If you already have a budget, update it to reflect your most recent priorities.

MISSION READY TIP: Using budgeting apps, such as a Monthly Budget Calculator, can help make the process easier.

2. Create the Right Bank Accounts

Not all bank accounts are built the same, and selecting the right one can make a big difference for your family. For everyday savings or short-term needs, a regular savings or money market account could be the right fit. If you are planning for long-term goals like retirement, an IRA offers the benefit of tax-deferred growth. By using different bank accounts for different needs, you will have a clearer view of your finances and stay on track toward your goals.

3. Make Your Emergency Fund

Life can be unpredictable, especially for military members and their families. Establishing an emergency fund with 3 to 6 months of living expenses creates a safety net for unexpected situations like medical emergencies, job loss, out-of-pocket costs during deployment transitions, or weather-related destruction such as hurricanes, floods, or tornadoes. You will thank yourself for saving later!

MISSION READY TIP: Need help building your financial safety net? Check out our go-to guide on creating an emergency fund and use the Emergency Savings Fund Calculator to map out your action plan.

4. Automate Savings

Make saving money automatic—no decision-making required. Set up automated transfers from your checking account to your savings account each pay period. This turns saving into a routine that’s as consistent as military training and drills. Plus, Armed Forces Bank's Saving Cents program makes it even easier by rounding up your debit card purchases and automatically depositing the spare change into your savings account.

CREDIT AND DEBT MANAGEMENT:

5. Monitor and Improve Credit Score

Your credit score is a reflection of your financial health, so it’s important to keep track of it. Start by reviewing your credit report for errors that could lower your score. Pay down debt, aim to keep your credit utilization below 30%, and always make payments on time. Let’s build your credit this year!

6. Eliminate Credit Card Debt

High-interest debt can sabotage your financial mission. Make it a priority to clear those balances using the Snowball Method (focus on smaller debts first) or the Avalanche Method (tackle high-interest debts first). This will help you reduce financial strain and keep your budget on course.

7. Steer Clear of New Debt

Whenever possible, focus on paying with cash or savings rather than taking on new debt. Before making a purchase, ask yourself, "Is this necessary, or can I save up for it?" If borrowing is unavoidable, evaluate the terms and interest rates carefully to minimize any long-term financial burden.

STRATEGIC SPENDING:

8. Cancel Unused Subscriptions

The average American household spends over $32 each month on unused subscriptions and memberships. The new year is a great time to audit your monthly subscriptions—are you still using that gym membership or all five streaming services? After reviewing everything, cancel or pause any services you no longer need.

9. Create Boundaries for Monthly Spending

Setting a monthly spending limit is an easy way to keep your family’s finances in check. It helps you build healthy habits and gives you a clear picture of where your money is going. The best part? The savings you build can be put toward bigger goals, like remodeling the kitchen or creating a college fund for the kids. Small steps now can lead to big rewards later!

10. Scale Back on Non-Essentials

Small adjustments, like brewing your own coffee or prepping meals at home, may feel like little things, but they can save you hundreds or even thousands over the course of the year. Don’t believe us? Use our Lunch Savings Calculator to see just how much you could keep in your pocket! Consider redirecting that savings toward a family vacation, holiday gifts, or another goal you’ve been working toward.

11. Shop With a Purpose

We’ve all been there—those impulse buys at stores can quickly throw your budget off course. To stay on track, create a shopping list and hold off for 24 hours before buying nonessential items. This simple strategy helps you make smarter choices and keeps your family’s finances in check.

FINANCIAL MAINTENANCE:

12. Evaluate Your Insurance Coverage

Review your health, home, and life insurance to ensure your coverage fits with your current needs. Major life changes—such as a move, a new job, or growing your family—may require adjustments to your policies. Having the right insurance can provide peace of mind and protect you from unforeseen challenges. Use our insurance calculators to explore your options and find the coverage that best fits your needs.

13. Review Tax Withholding

At the start of the year, take a moment to review your tax withholding. Changes in your life can impact how much tax is withheld from your paycheck. Adjusting your withholding in the beginning ensures you won’t overpay or underpay, helping you keep more of your hard-earned money and avoid surprises come tax season.

INVESTMENT PLANS:

14. Begin Investing

Investing is a smart New Year’s resolution that puts you in control of your financial future. With a variety of investment options available, you can find opportunities that suit your goals and risk tolerance. Start by setting a budget, selecting an investment platform or advisor, and exploring investment options that align with your financial goals.

MISSION READY TIP: Be cautious of investment scams and unreliable crypto apps—always do your research before investing.

15. Strategize with Diversification

In the military, spreading out resources is key to mission success—and this strategy also applies to your finances. Diversifying your investments across different assets, such as certificates of deposit (CDs), stocks, bonds, and real estate, can reduce risk and boost long-term returns. To learn more, check out our recent article: What You Need to Know About Diversification in Finance.

FINANCIAL EDUCATION:

16. Learn How Personal Finance Works

In the military, success comes from being prepared, and the same goes for managing your money. To stay financially fit, you can read personal finance books, join workshops, or listen to finance podcasts. And remember, your bank has free financial education resources and money blogs to help you stay mission-ready.

17. Evaluate Net Worth

Your net worth is like the scoreboard of your financial journey—it shows whether you are moving forward or falling behind. To calculate it, simply subtract your total debts from your assets. And for an easier approach, you can use a Net Worth Calculator.

18. Teach Your Children About Money

Want to set up your kids for financial success? Talking about money can be a family affair! Include your children in conversations about budgeting, saving, and spending. Teach them the value of money and how to make wise choices. Start early—it’s an investment that will pay off for years to come!

PLANNING FOR THE FUTURE:

19. Outline Your Financial Goals

Whether it's saving for a major purchase or preparing for early retirement, outline your short-, medium-, and long-term financial goals. Clearly defining what you are working toward will help you stay focused and make it easier to track your progress.

MISSION READY TIP: Use tools like Armed Forces Bank’s Savings Goal Calculator to determine exactly how much you should save to reach your targets.

20. Prepare for Retirement

Make more contributions to your IRA or 401(k), or establish a retirement fund if you haven’t already. The sooner you start, the more your money has the chance to grow. Remember, retirement planning isn’t something to push off—it’s a mission that starts now. To help you calculate retirement savings goals, check out our full suite of calculators for retirement.

MISSION DEBRIEF:

Happy New Year From Armed Forces Bank!

At Armed Forces Bank, we know how important it is to stay focused and organized when working toward financial goals. Whether you are planning to save more money, invest smarter, or manage your spending, making small and consistent actions can make a BIG DIFFERENCE over time.

To help you along the way, our military bank offers practical tools and resources designed to fit your needs. From competitive savings accounts to financial calculators and programs like Saving Cents¹, our goal is to give you the support and solutions for success.

Here’s to a successful 2025—Armed Forces Bank has your back!