The tradition of making resolutions is largely reserved for the New Year — and among Americans who did so this year, more than 3 in 5 (61%) made them about money or finances (68% Gen Zers, 63% Millennials, 56% Gen Xers, 48% Baby Boomers), according to the Pew Research Center.¹

Meeting your money goals is often a fluid and ongoing process, and this time of year it can be useful to take stock of your financial situation — and get a jump start on plans to boost your financial fitness in the year ahead.

What money plans and goals do you have to set yourself up for success? These 5 strategies can help you get started and stay on track.

1. Create a road map

A comprehensive and realistic budget is an important first step to mapping your way to financial fitness. Start with doing an inventory. This should include monthly take-home pay, essential expenses (food, housing, living expenses, etc.), and non-essential outlays (entertainment, shopping, luxury items, etc.). Be sure to include estimates for big-ticket items you’re anticipating, like upcoming home repairs or tuition. Once you have a clear picture of how much you’re taking in and where your money is going, you’ll be able to establish some savings goals. An approach like the 50-30-20 budget rule can be a useful tool to help you prioritize by bucketing expenditures into categories.

Consider incorporating these practices into your budgeting routine:

✔️ Check your credit report. Your credit score provides a window into your financial health by showing how responsibly you use credit. It can help determine whether you’ll be approved for a loan and qualify for favorable rates and terms.

✔️ Calculate your net worth. Your net worth — the difference between what you own (assets) and what you owe (liabilities) — provides a bird’s eye view of your overall financial picture, and nearly 3 in 4 (73%) of Americans expected to bump up theirs in 2024, according to an Empower study. Your net worth calculation can serve as a baseline to determine how you’re doing against your goals going forward. While there may be some fluctuations depending on economic and market conditions, you want to see a general upward trend over time.

Building net worth can be a gradual process. Here’s a snapshot of how Empower Personal Dashboard™ users stack up by generation.

Average net worth by generation

2. Live below your means

Spend less to save more. While that equation may be oversimplifying things, its logic does have some merit. Empower research shows nearly 30% of Americans feel that they overspend on luxuries. Living below your means requires some belt-tightening and lifestyle changes — which can be tough if you’re already taking similar steps — but it can pay off by giving you more control and freeing up cash that you can put toward saving.

Are there opportunities to reduce your spending on non-essentials? Here are a few ideas to get you started:

✔️ Look for little things. There may be opportunities to consolidate or even eliminate small-ticket items. For example, cut subscriptions or memberships you’re paying for but don’t use, shop with a list to avoid making impulse purchases, and keep a diary of spending to track where your money is going.

✔️ Reduce your car payment. Nearly a third of drivers (29%) say their car payment is one of their biggest expenses, paying around $452 on average for their car each month, according to Empower data. Auto loans represent the second-largest category of consumer debt in the U.S., and 57% are holding onto their cars longer because of increased costs. If you’re in the market for new wheels, do your research: Look into whether it’s better for your budget to buy or lease, and shop different insurance options to find the best rates.

✔️ Pay with cash. Relying on just the cash in your wallet or using your debit card may help you resist the urge to splurge, since spending affects your account balance in real time, unlike the delayed impact when using a credit card. The Buy Now Pay Later approach offers another alternative to credit cards to lighten the load of spending — but keep in mind that for some it can also be a potential pitfall that can lead to taking on more debt.

3. Aspire to be debt-free

An Empower study shows that 65% of Americans define financial happiness as being debt free, yet more than half of Americans (54%) say they carry some. Debt can take a toll on your finances and be a major impediment to your ability to save. In fact, getting a handle on it is a priority for consumers, with 52% saying if they had a windfall they’d put it toward paying down debt.

There are different approaches that can be effective for tackling debt. The debt avalanche technique is rooted in math: You chip away at the debt that has the highest interest rate first and work your way down the list. The debt snowball method is meant to be a mental motivator: You pay off debts from smallest to largest, regardless of interest rates to get rid of smaller liabilities quickly. There’s no one surefire tactic — it comes down to following what works best for your individual circumstances and sticking with it.

💡 Savings tip: Once you’ve paid something off, keep making monthly payments — to yourself — sending the extra cash directly to your savings.

4. Expect the unexpected

An emergency fund is an important part of your financial plan. It provides a safety net to cover expenses that result from unforeseen events like job loss, major medical bills, and home repairs. Yet Empower findings show 30% of Americans have depleted their emergency savings and have been unable to catch up or replenish it, and 40% have not contributed to their fund in more than a year.

How much should you save in your emergency fund? Conventional wisdom says socking away enough to cover 3 – 6 months of expenses is a good goal, but you may need to make adjustments depending on your circumstances.

Remember that your emergency cash is a long-term investment (the hope is that you won’t have to use it), but it needs to be liquid and immediately accessible. Think about keeping the money in short-term investment vehicles that pay interest and have no withdrawal restrictions.

If you’re struggling to set aside emergency funds, there may be windfall opportunities you can take advantage of to help build up savings quickly, such as a tax refund or work bonus.

5. New year, new career

Empower research shows money is the number one driver of job satisfaction (67%), and more than a third of Americans (34%) plan to seek a raise at work.

Job numbers are on the rise, with U.S. employers adding 254,000² new opportunities in September 2024. If you’re considering making a job change to boost your bottom line, as you evaluate options be sure to think about financial factors that go beyond your paycheck.

✔️ 401(k) or other retirement plan. Does your prospective employer offer a retirement plan, automatically enroll you, and make matching contributions? According to an Empower study, Americans say they need $1,058,547 in savings, on average, to retire, and automating savings through a 401(k) is a straightforward way to help build your balance. As you consider your contribution amounts, be sure to find out if there’s a minimum necessary to qualify for any employer match.

✔️ Guidance. What kind of financial planning support does your potential employer provide? Empower data reveals 52% of Americans wish their job would provide more financial literacy opportunities, and 44% wish their employer offered one-on-one financial help.

✔️ Connections. Taking advantage of your personal connections can pay off, literally: 31% of Americans say they owe their current job and their salary (29%) to their personal network, according to Empower findings. That number is even higher for Millennials (40% for both).

The bottom line

Making money resolutions can happen throughout the year — any time is a good time to strengthen your financial fitness. Remember, you don’t have to implement resolutions all at once. Think of them as aspirational markers to guide your progress — and you may also consider talking through your goals with a financial advisor.

For more money resolutions tips, check out these 10 financial resolutions for the New Year.