10 tips to transform your relationship with money in 2025

As 2024 comes to a close, many people are reflecting on their financial goals for 2025. Financial resolutions can provide motivation to achieve goals like saving for a move or paying off debt. Experts recommend the following strategies:

1. Change your relationship with money: Reflect on how you currently handle money and identify areas for improvement.
2. Know your "why": Clearly define the reason behind your financial goals.
3. Budgeting: As expenses increase, adjust your budget and transfer any surplus into savings. Consider using a high-yield savings account for better returns.
4. Pay own debt: With interest rates still high, it's essential to focus on paying off debt, particularly credit card balances.
5. Take control of your credit card interest rate: You can lower your interest by requesting a rate reduction and using 0% balance transfer cards or low-interest loans can help reduce debt more quickly.
6. Set realistic goals: Start small with savings goals, like $20 per paycheck, and be kind to yourself when life events disrupt your plans.
7. Monitor your credit score: Check your credit score monthly and ensure you pay more than the minimum on your credit accounts to boost your score. Student loan borrowers should also make timely payments to avoid negative impacts on their credit.
8. Automate savings: Automate savings through direct deposits into retirement accounts, IRAs, or college savings plans. Small, automatic contributions can add up over time.
9. Slow down to avoid scams: Take time to verify and consult others if you're unsure about a transaction.
10. Focus on financial wellness: Set goals to improve your relationship with money and address any financial trauma.

Read more: Associated Press

 

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