4 New Year's financial resolutions worth making

New Year's resolutions have a mixed reputation: Some see them as a nice nudge to start off the year on the right foot, while others view them as pie-in-the-sky life overhauls they'll never actually uphold past January. Both things can be true, which is why it's important to temper your resolutions with a dose of reality.

For instance, maybe it's unrealistic to say you can stop shopping for a full year, but perhaps you could pledge to stick to your budget for discretionary spending or even just shop more mindfully. Because the truth is, even these small moves can add up to a noticeable impact on your financial life.

1. Create a plan for spending and saving

A budget is the bread and butter of smart financial management. But for some, the standard monthly budget can seem intimidating. Another option you might try is a weekly budget, as "with a weekly vs. monthly budget, the amounts you have to track are smaller and more manageable, and you may be more likely to stick to them," SoFi explains. Another tactic is a spending plan, which "allows you to choose what you spend your money on instead of restricting yourself on what you can’t spend," suggests Bankrate.

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In other words, do aim to budget in the new year — just find a way to do so that actually works for you.

2. Save more than you are right now

If saving the suggested 20% of your income every month sounds like a steep ask, try this instead: Simply aim to save more than you are right now. If you're not currently saving anything each month, then you can just plan to start setting aside a little bit each month to get an emergency fund established. Or, for instance, if you're already diverting a certain percentage of your paycheck to your retirement account each month, see if you can put aside just 1% to 2% more each month this year.

It's also important to consider where you're saving. As CBS News points out, "traditional savings accounts may provide a sense of security, but they often fall short when it comes to earning substantial interest." Instead, you might consider a high-yield savings account or even diversifying your savings by allocating a portion to a certificate of deposit (CD).

3. Improve your credit score

As Bankrate highlights, "your credit score plays a critical role in determining whether you get access to financing and other financial services you need," which is why improving it is a worthy 2024 goal. According to CNBC Select, you can "improve your credit score in several ways, including paying your bills on time and in full (setting up autopay can help), paying off debt, limiting how many new accounts you open, and cutting back on spending." 

It's also helpful to check your credit report to scan for any errors or signs of fraud, which you should be doing on a regular basis anyway.

4. Pay down credit card debt

Thanks to high interest rates, credit card debt can compound quickly, which is why it's important to jump on tackling it if you have any. Per Investopedia, a good first step is to determine how much you can realistically afford to pay off during the year," while at the same time, attempting "not to charge additional purchases on those cards."

There are a few different strategies you might consider to make paying down your debt feel more manageable. According to Bankrate, "two common strategies are paying off your highest debt first (the debt avalanche method) and paying off your smallest amount of debt first (the debt snowball method)." And "if you're struggling with making payments, consider credit counseling, a low-interest balance transfer, a personal loan or even debt settlement," Bankrate suggests.