5 Don'ts For Your Financial Resolutions

December 26, 2024

​5 Don’ts for Your Financial Resolutions in 2025

Setting financial goals is a smart way to start the year, but sticking to them requires the right approach. Avoid these common mistakes to ensure you make steady progress toward your money goals.

Don’t Set Impossible Goals

Don’t set yourself up for failure. While it’s great to have ambitious dreams, focus on starting with manageable, actionable steps you can track each month. Perfection isn’t the goal—progress is. Remember, self-compassion on tough days is key to staying on track. It’s best not to expect perfection of yourself. Everyone is human and there will be days when you need to be gentle with yourself.

Instead of deciding to save 50% of your income when you’re barely making ends meet, start small—aim for 5–10% each month. Tools like payroll deduction can make this habit effortless. It’s better to be consistent than intense when it comes to saving.

Don’t Overlook Emergency Savings

Don’t forget to build an emergency fund before planning goals like saving for vacation or home renovations. Aim to save three to six months’ worth of living expenses in an accessible savings account to prepare for unexpected events like job loss or medical bills. It’s best to be prepared if the unexpected happens, and you won’t be completely derailed financially.

Don’t Neglect Tracking Your Spending

If you don’t know where your money is going, you can’t take control of your finances. Create a simple system to track expenses, whether it’s a mobile app or a spreadsheet. Set aside time weekly or monthly to review your spending habits and identify areas for improvement.

Don’t Take on Too Many Financial Goals at Once

Trying to juggle saving for a vacation, paying off debt, and investing for retirement all at once can be overwhelming and counterproductive. Instead, prioritize one or two goals that will have the biggest impact. For example, if you have high-interest debt, concentrate on paying it off first. CASFCU can help you consolidate your debt.

Don’t Give Up

It’s easier said than done, but don’t give up on your goals. Just because you trip doesn’t mean you might as well lay down on the ground for the rest of the day. The same goes for your resolutions. Just because you didn’t save what you were planning to save each month in January, doesn’t mean you shouldn’t keep trying in February. Reassess your budget, make adjustments, and keep going. 

Chattanooga Area Schools Federal Credit Union is here to help you set your goals and stay on track. Contact us today with questions on how you can accomplish your 2025 financial resolutions.