The increased inflation of recent years continued to strain the wallets of many Americans in 2024, but the start of the new year offers a great opportunity to set new financial goals to get back on track.

“As we head into 2025, the country’s financial landscape requires proactive solutions to address rising concerns such as inflation and debt,” WalletHub analyst Chris Lupo told FOX Business. “Top financial resolutions for 2025 should focus on smart budgeting, saving and paying off debt.”

Here are some of the top financial New Year’s resolutions for 2025, according to WalletHub:

1. Create a realistic budget and stick to it

“With Americans carrying nearly $1.3 trillion in credit card debt, setting realistic budgets is a must,” Lupo said.

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2. Save more money

Lupo says saving is also crucial as many households lack emergency funds. He suggests starting small, with the goal of saving two months’ salary and then working your way up to an annual income.

“Don’t forget to maximize your earnings: Starting at 5% APY on online savings accounts makes it worth switching banks,” he noted, adding that high-yield certificates of deposit (CDs) are also worth considering.

3. Explore high interest rate refinancing options

High-interest debt is costly, so Lupo recommends considering tools like balance transfer cards or debt consolidation loans to reduce costs.

4. Pay off 25% of your credit card debt

The average American currently has more than $10,000 in credit card debt, and the sooner this can be addressed, the better. WalletHub says it’s important to get serious about it, but suggests it’s probably best to start small and set a goal of saving a quarter of it over the course of the year.

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5. Fight inflation

Look for ways to reduce the cost of everyday expenses, such as: B. Shop around on everything you buy, take advantage of deals and coupons, turn down the thermostat, buy in bulk, and discount until prices go down.

WalletHub has another 10 suggested financial resolutions for 2025, including paying bills as soon as you receive your paycheck, ensuring you have enough insurance in case of a disaster, protecting your identity, brushing up on your financial knowledge, and even finding a better job.

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“Focus on financial literacy and healthy money habits, such as paying bills immediately after payday,” Lupo said. “These steps will help make 2025 a financially healthier year.”