6 Financial Habits We’re Ditching in 2025
As we step into a new year, it's the perfect time to reflect on our financial habits and make positive changes. Here are six financial habits we're leaving behind to ensure a healthier financial future:
1. Overconsumption and Impulse Buying
With our advancements in technology, many of us have grown accustomed to instant gratification, overconsumption and impulse buying. However, taking these actions can quickly drain your finances and lead to unnecessary debt. In 2025, let's focus on mindful spending. Start by creating a spending plan to help prioritize where you want your money to go. You’ll find yourself saving more and spending less on items that don't add long-term value to your life.
2. Avoiding Tackling Debt
Ignoring debt won't make it disappear and often makes repayment more difficult as time goes on. This year, develop a repayment plan, whether it's the snowball method (paying off the smallest debts first) or the avalanche method (tackling the highest interest debts first). Consistently making payments, even small ones, can significantly reduce your debt over time and relieve financial stress.
3. Not Setting Goals
Whether it's buying a home, saving for retirement or funding you or your child's education, identifying your financial goals can help keep you develop good financial habits. In 2025, commit to creating or updating your financial goals. Keep your goals achievable and outline your plan to reach them. Regularly review and adjust your plan to stay on track.
4. Being Intimidated by Investing
Many people avoid investing due to fear or lack of knowledge. While investing may seem daunting, it's a crucial component of building wealth. Start by educating yourself on the basics and consider speaking with one of our Member Relationship Specialists to identify where you should start. Remember, investing is a long-term game, and starting early can yield significant benefits.
5. Neglecting Emergency Savings
Life is unpredictable, and having an emergency fund can provide a financial safety net. Aim to save at least three to six months' worth of living expenses. This fund can help you navigate unexpected expenses, such as medical bills or car repairs, without derailing your financial plans.
6. Viewing Money Management as a Chore
In 2025, we’re shifting our mindset from viewing money management not as a chore, but as a new opportunity to secure our financial futures. If you’re a Credit Human member, our financial health tools in digital banking bear most lot of the load in managing your finances. Stay motivated by keeping your financial goals in sight with calendar reminders, dream boards or a financial planning journal.
As we work on increasing our financial health in 2025, let’s remember that every small step counts toward a more secure and prosperous future. We’re here to support you every step of the way. For personalized guidance in setting financial goals, make an appointment or walk into your nearest Financial Health Center today.