Finding 'your money's mission': Local experts share how to succeed at financial resolutions

With the start of 2025, many Americans are making resolutions to work toward during the next 12 months.

According to a December study from Fidelity, 65% of Americans are considering making a financial resolution.

The study identified the three most consistent goals year-over-year, with 43% saying they want to save more money, 37% saying they want to pay down debt and 31% wanting to spend less money.

With nearly 3-in-4 Americans experiencing financial setbacks in 2024, emergency funds are also a focus for many, as 79% of respondents indicated they want to build up their emergency funds this year.

For Anisa Dunn, SVP, Senior Fiduciary Services Manager at Johnson Financial Group, taking the time to reflect on financial health is important.

“Many of us get up and go to work every day to earn money, and not a lot of people take the time to think about what is the purpose of that money, or what is your money’s mission and what do you want to do with that money,” she said.

Dunn recommends taking “generic” goals — like paying down debt or spending less — and applying a personal mission to them, whether it’s thinking about retirement, managing student loan debt, aiding family members or being philanthropic.

“Starting with a purpose or mission is important,” she said. “It’ll make some of those underlying goals of spending less or paying down debt easier to do because you’ll have a bigger picture purpose in mind.”

Won’t ‘happen by accident’

For Jon Mrowiec, assistant professor of accounting and finance at Carthage College, having a plan is an important step to succeeding at a financial resolution.

He recommends that people look at their tax returns from the previous year to understand how much after-tax money they will have to spend, and then formulate a plan.

“It’s not going to happen by accident,” Mrowiec saic. “You budget everything out.”

This plan can be detailed or general, he said, adding that some of his clients will plan for a year how much money they intend to spend on presents.

“You don’t need that kind of detail, but you do need to know how much money is coming in and how the money is coming out,” Mrowiec said.

Still, some folks may face challenges along the way: The same Fidelity survey found that 39% of people who were not able to stick to their financial resolution last year attributed it to having less money because of the impact of inflation on every-day expenses.

With some respondents worried about their ability to pay monthly bills and debt, having money left over to save, and having enough money to retire as planned, many Americans — 38% — are also worried about unexpected expenses.

Approaching financial goals in smaller portions can help, according to Dunn.

“If we lose sight of this in March but pick it back up in April around tax time, that’s just fine. There’s constantly reminders throughout the calendar year or our environment of our financial well being,” she said. “Any of those reminders can serve as stepping stones or the motivation we might need to look at our finances and make small changes to make things better.”

When considering financial changes, Dunn said she often suggests that people look at their bank and credit card statements through the eyes of a stranger.

“What story does your credit card or bank statement tell about you … and is that story aligned with that broader mission or purpose that you have for your money?” she said. “I think if you’re able to ask yourself that truly and honestly, that will help guide your spending decisions and might ultimately have you spend less.”

Though people don’t always want to “look under the hood of their finances,” Dunn said there should be an honest evaluation of debt.

If it’s “good debt,” Dunn said people can leave it and save somewhere else. But, if they’ve identified high-interest debt that they want to get rid of, making a plan to pay it can be helpful.

As with non-financial resolutions, breaking them down into smaller, more realistic goals can help with motivation.

“Setting a smaller goal and having a win is probably going to be more motivating for you than setting a really big goal and not reaching it,” Dunn said.

For finances, this could include paying down one credit card or switching your savings to a bank with high interest.

Knowing where the money goes

Mrowiec suggests individuals look at their finances at the same time each month, evaluating how much money is in their checking and savings accounts, as well as the balances on their credit cards.

From there, people can compare the totals from month-to-month to see whether the money is growing or decreasing.

“It’s got to be simple or people aren’t going to follow it,” he said.

Mrowiec said the easiest way to save is with a 401k because “that is money that you never get your hands on.”

He said people should maximize employer-offered matches and aim to contribute 10% to their 401k.

People also need an emergency fund and can’t rely on credit cards to serve that purpose, he said.

“Where people start to get spiraled down is when something unexpected happens,” he said. “They put it on their credit card. They can’t pay off the credit card, and now they’re paying 28% interest. It’s hard to overcome.”

According to Mrowiec, another way to control spending is to live below one’s means and “minimize some of the trappings.”

“I think the most important thing to having any kind of financial success is having a plan,” he said. “You got to live below your means, and you can’t live below your means if you don’t know where your money’s going.”

Understanding what kind of accounts your money is in is also important, Dunn said.

For instance, she recommends not keeping too much in a checking account, which pays a lower interest rate, and putting the rest in a savings account.

She also suggests evaluating on a yearly basis what interest rate your savings account offers.

Compound interest and passive income are other ways to help people both get on track with their finances and maintain a healthy financial future.

“If you’re young, using that power of compound interest now, while time is on your side, is just a wonderful tool,” Dunn said.

This, she said, is connected with passive income, or “the ability to generate income not through manual labor or otherwise.”

“By saving money now and investing it, you create compound interest and passive income for you for potentially your lifetime, if you’re able to do that,” Dunn said.

For Mrowiec, even learning more about finances is a resolution people could set for themselves, whether it be understanding a 401k or budgeting.

“Different people are going to have different degrees of understanding, but everybody can have a basic understanding,” he said. “It’s too important to just throw your hands up and say, ‘I don’t understand it.’”

As seen in the Journal Times.