4 realistic financial new year’s resolutions

Happy New Year! As we kick off 2025, you might be thinking about ways you can improve yourself this year through the common tradition of creating resolutions. January is the perfect time to focus on your financial health and set some financial new year’s resolutions that you can work towards this year! Whether you want to save for a home, plan for retirement, or simply improve your financial wellbeing, setting goals you can achieve will have a huge impact. Here are four realistic resolutions you can consider in 2025.

#1 Create a monthly budget

A budget makes up a huge part of financial stability. Your budget lets you see where your money comes from, where it goes, how well you’re saving, and how you can prepare for the future. Creating the right budget is a game of trial and error, but there are some key steps that will help guide you. First, you will want to evaluate your current spending habits. Over the course of a month, track your spending and your income, and where your money is going. Include details such as essential and non-essential purchases. Once you have a better idea of your spending habits, you can start to determine how to best distribute your money. The 50/30/20 rule is a good place to start! This strategy puts 50 per cent of your income towards essential expenses, 30 per cent towards non-essential purchases, and 20 per cent is put away for saving. The biggest part of a budget, however, is sticking to it. Check in with yourself often, and make any adjustments as needed. Holding yourself accountable will give you the greatest chances of success!

#2 Work on your credit

Your credit score also plays a crucial role in your financial wellness. This is one of the most essential financial new year’s resolutions because of the impact it can have long-term. But how can you improve your credit? 

Paying your bills on time is critical. Late or missed payments can result in penalties that put you deeper into debt and make your credit score sink over time. Even if you can only contribute the minimum amount, this is better than not paying anything. Next up is focusing on how you can keep your credit utilization on the lower end. The more credit you use, the more at risk you are of putting yourself in debt and damaging your credit. Try to keep your usage below 40 per cent to maintain safe spending habits. Finally, keep an eye on your credit report and be sure to investigate potential errors. Mistakes happen, but you don’t want to pay for the consequences. You can request a free credit report from Equifax or TransUnion. If you see anything that looks inaccurate, be sure to bring it up!

#3 Make space for an emergency fund

Creating an emergency fund is one of the most practical financial new year’s resolutions. Life can be unpredictable, but having backup funds saved up can reduce the stress associated with sudden changes. This also gives you peace of mind! Start by deciding how much you want to contribute to this fund each month. You should try to build up enough savings to cover three to six months of essential expenses such as food and housing bills. You should also think about making room for an unexpected vet visit, medication, or any other major expenses. 

Opening a high-interest savings account can help you grow your savings faster. Even small contributions will add up over time! Be sure to not use this account for anything other than building your emergency fund, so you don’t risk losing the money on something unrelated. It can be tempting to use your emergency savings for non-emergencies, but do your best to avoid this!

#4 Prioritize retirement planning

Finally, it’s never too early to start planning for retirement. The sooner you start saving, the more your money will grow over time. If you have a Registered Retirement Savings Plan (RRSP), make the most of it by aiming to contribute the maximum amount. For 2025, Canadians can contribute up to $32,490 throughout the year. Even if you can’t quite max out your account, contributing as much as you can will make a big difference. You should also chat with your mortgage broker to see how you can make the most of your income in regards to retirement planning. It can feel overwhelming, but working with a professional and breaking it down into little bits can help ease the pressure.

Your financial new year’s resolutions should be an accurate reflection of your situation and how you can plan for the year ahead. Take small steps, be consistent, and make sure to get in touch with a mortgage broker for guidance! We are here to help you with your financial needs and homeownership goals.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.