This is the time of year when many people make New Year’s resolutions — “I’m going to boost my savings” or “I’ll pay off my credit card debt” — even if they failed to keep them in the past.
“We tend to carve our life up into phases,” said E.J. Masicampo, an associate professor of psychology at Wake Forest University who is an expert on goal setting, and the start of another year “feels like a clean slate.”
Most Americans say they have a financial resolution for 2026, according to a survey from the investment firm Vanguard, even though about three-quarters conceded that they fell short of their saving and spending goals last year.
“I think it’s a human tendency to be optimistic about your future goals,” said Kate Byrne, a savings expert at Vanguard.
Yet even as people resolved to do better this year, the survey found, they foresaw barriers to improving their financial fitness, including uncertainty about the economy, insufficient income and unexpected expenses. The top goal among those with resolutions was building a fund for emergency costs. The lack of a cash reserve was the survey participants’ most commonly cited mistake in 2025.
Here are some strategies for reaching your financial goals in the months ahead.
Whittle down your menu of resolutions.
Just because the page on the calendar turned, it’s not necessarily easier to achieve your goals. Research suggests that on average, Professor Masicampo said, people have 15 goals at any given time, which can diffuse the energy needed to achieve any one of them. “It’s a lot,” he said.
It’s wise to pare your list of goals to a few that are truly a priority and that you are enthusiastic about, Professor Masicampo said. “When we feel like we ‘have’ to do something, it becomes much harder,” he said. “When we want to do it, and it aligns with our beliefs, it becomes inherently interesting and fun.”
Make goals specific, and have a plan.
Rather than a vague commitment to “save more money,” Professor Masicampo said, home in on what you are trying to do and what steps you will take to make it happen. Ask yourself: How much money will I save? What behaviors will I engage in? Identify the time, place, situation and specific actions to take. First, he said, recognize what situations provide a good opportunity to act, and then decide what you will do when they occur.
For instance, you resolve to spend less when you go out to dinner. Say to yourself, “When I go out to eat, I will not order any desserts.” By “solving” the problem in advance, he said, “it takes away the effort involved” in making the decision in the moment.
Make saving automatic.
The same thinking applies to saving. You can make sure you’re saving by having a fixed amount of money transferred to a separate savings account on a regular basis, or at least put a reminder in your phone to do it, Ms. Byrne said.
“Set it and forget it,” she said. “You don’t have to have that internal battle.”
Economic uncertainty can make people feel paralyzed, she said. But taking steps to build a cash cushion can help reduce stress. You may want to save three to six months of living expenses, but if that feels overwhelming, start with a goal of two weeks. “Start small,” she said.
Research has shown that “reframing” how people think about money can help them save, said Katy Milkman, an economist at the Wharton School of the University of Pennsylvania who studies behavior change. In one study, researchers showed that presenting users of a savings app with smaller daily amounts, rather than monthly amounts, quadrupled participation even though the total was the same.
“When we think about goals, focus on the bite-sized activity we can take action on right now,” Professor Milkman said.
Set yourself up for savings success.
To free up money for your savings resolution, it also helps to avoid temptations to spend, said Christine Whelan, an adjunct associate professor at Emory University’s Center for the Study of Human Health. “Self-control is overrated,” she said.
She suggested reviewing your various subscriptions and canceling those you no longer use much, and unsubscribing to promotional messages that tend to flood your phone or computer after the holiday shopping period.
“Get off those marketing email lists,” she said.
What if I have to use my emergency fund?
An emergency fund helps reduce people’s worry, said Jesse Mecham, founder of the You Need a Budget app. “But it increases their guilt when they have to use it,” he said, even though it’s there to be used when needed.
He prefers not to call it an “emergency” fund, he said, because the title evokes images of catastrophe. In reality, cash reserves are often needed for foreseeable yet pricey events, like a car repair or the replacement of an aging furnace, Mr. Mecham said. He suggests naming the fund for what you intend to use it for, like the “new HVAC system” account.
He also suggested scrolling through recent bank statements or credit card bills and noting larger amounts. Ask yourself: Is that likely to happen again? If so, that amount is probably a good initial goal for a New Year’s resolution to build a reserve cushion, he said.
Cindy Wilson, a wealth adviser at HB Wealth in Alpharetta, Ga., suggests keeping rainy-day funds at a different bank, separate from your primary spending account.
“By making it harder to access,” she said, “you’re less likely to spend it on a nonemergency item.”
Enlist help from a trusted friend.
Involving others in your goals can help you stick to them, said Professor Milkman at Wharton. If there is someone you trust enough to discuss your finances with you — a spouse or a close friend — it can make the process less burdensome, she said.
Her father used to meet with a good friend over dinner to discuss his taxes every year, she recalled. “He looked forward to it,” she said. “If you can make it more fun, you’re much more likely to follow through.”
I’m not ready to make a resolution.
If you miss the January window, you can regroup in time for the Lunar New Year, which begins on Feb. 17, Professor Whelan said.
“Try again,” she said. “It’s not a one-and-done kind of thing.”
Or consider observing “Frugal February” — a nickname given to efforts to rein in spending during the second (and shortest) month of the year.
Other meaningful dates, like a birthday, can also present “fresh start” opportunities when people are more open to starting new savings behavior, Professor Milkman said.
But, in general, delaying action isn’t a way to get something done, she said. “Looking for the next ‘fresh start’ is a license to procrastinate,” she said. So she recommended waiting only if you are absolutely unwilling or unable to commit to making a desirable change now.
The post How to Make, and Keep, New Year’s Financial Resolutions appeared first on New York Times.
