Nearly 7 in 10 Americans are considering making New Year’s resolutions that have something to do with money, according to the 2022 Financial Resolutions Study from Fidelity. That puts financial improvement up there with physical health as America’s most popular wintertime self-promises.
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The most common financial resolutions deal with saving money, reducing debt and slashing spending — all noble vows, indeed — but different age groups might be better off tailoring their pledges to their respective stages in life.
Here’s a look at the resolutions the experts suggest across the decades.
20s: Resolve To Save and Invest for the Future
Julie Ramhold, a consumer analyst with DealNews.com, advises young adults to vow to sock money away for retirement, despite how far off that might feel.
“It might seem too early to do so, but the economy in the state it’s in, and the problems plaguing young professionals, it’s best to start setting aside money now, even if you aren’t working for a place that contributes to a 401k,” Ramhold said. “Open your own account if you have to, and even if you can only put a little away, start doing so now — that little bit will add up over time.”
Even if it’s not for retirement specifically, time is every investor’s most powerful weapon and you’ll never have more of it than you do in your 20s. If you don’t do a little now, future you will have to do a lot.
“Start investing in some capacity,” said Omer Reiner, a licensed realtor and president of FL Cash Home Buyers. “The easiest way to do this is to open up an investment brokerage and buy index funds that track the overall stock market. You have an advantage as a younger person because your money has plenty of time to grow.”
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30s: Resolve To Be Debt-Free
If you saved money in your 20s — or even if you didn’t — the best resolution you can make in your 30s is to enter middle age debt-free. Between growing kids, aging parents and ever-mounting bills, your 40s can be expensive. The last thing you need is a bunch of IOUs hanging over your head — with interest.
“If you have any lingering debt, whether it’s student loans, or paying on a mortgage, car, or even significant amounts of credit card debt, it’s best to try to aim to pay it off as quickly as you can,” Ramhold said. “This will allow you to save more once it’s taken care of, as well as put funds towards more things you want to do like family vacations, international trips, investments, or anything in between.”