The PennMoney Guide To Better Financial Resolutions

Hello 2025!

Thinking about making a change this new year? Good call. The new year is a sparkling, untouched slate—a fresh chance to get our act together. If you’re aiming to whip your finances into shape this 2025, I’ve got three tested (and surprisingly human-friendly) techniques to help you actually stick to your goals.

Jump Into The Rabbit Holes

If I think about the resolutions I succeeded with, they’re the ones where I was part of a community.

There’s something quietly revolutionary about knowing you’re not alone in trying to achieve something. It makes all the difference when you’re in a space where people share the same struggles, victories, and random nuggets of wisdom. The internet, with all its chaos, also happens to be a treasure trove of niche communities waiting for you to dive in.

But these groups aren’t just about learning tips or swapping stories. They’re a buffer against the noise of social media. Every time I’m tempted by a post or video that makes me question my goals, I open my community page instead. And it works. The camaraderie, the shared wins, the collective struggles—they anchor you to what really matters.

There’s even science to suggest that belonging to a group activates the brain’s reward systems! When someone cheers your progress or when you see others overcoming hurdles, it reinforces purpose and strengthens motivation at a neural level.

So if you have a money resolution this year – find your tribe!

Micro Over Macro

The smaller the resolution, the higher the chances you’ll stick to it. Big, dramatic goals are fun to dream up, but they’re also an express ticket to feeling overwhelmed. And overwhelmed people give up fast.

Take your big, shiny resolution and break it down into bite-sized, monthly targets. If even that feels daunting, scale back. The trick is to make the steps so manageable that failing feels harder than succeeding. Want to save ₹6 lakhs for an emergency fund? That’s a lot. But putting aside ₹25K every month for the next two years? Totally doable. The math checks out, and so does the psychology.

Small wins build momentum, and momentum is your best friend when it comes to resolutions. So start small. Start steady. And watch the big goals take care of themselves.

Give Yourself An Identity Makeover

Don’t just set goals—redefine who you are. Studies show that tying goals to your identity (“I am someone who…”) is more effective than focusing on outcomes. For instance, saying, “I am someone who is working toward financial freedom” beats the pants off “I want to save money.”

Why? Because identity-based goals are sticky. They’re not about a finish line; they’re about becoming. And yes, it’ll feel a little fake at first—like you’re borrowing someone else’s clothes. That’s fine. Imposter syndrome is part of the package. But over time, you’ll ease into this new version of yourself. And when you’re operating from this new identity, good habits will start to feel automatic.

As you get more comfortable in your new identity, fortify it with some classic goal-setting—with SMART (specific, measurable, achievable, relevant, time-bound) goals. Identity gives you the foundation, and SMART goals give you the structure.

These three strategies—community, micro-goals, and identity shifts—are what got me to stick to my resolutions this past year…What are your goals for 2025?