How to make 2023 financial resolutions you can actually keep
Financial experts explain how to tell a good resolution from a bad one.
It’s a new year — which means it’s time to think about new year financial resolutions.
Some of us may have achieved our 2022 financial goals with time to spare. Others of us — well, let’s just say that we’re considering making the exact same new year’s resolution in 2023.
2022 may have had its financial ups and downs — groceries went up, stocks went down — and some of this uncertainty may have made it difficult to keep certain types of financial resolutions. However, it is possible to set financial goals and continue working towards them no matter what the next year brings.
“As the saying goes, if you shoot for the stars and only reach the moon, you’ve still gone an awful long way,” explains LendingTree Chief Credit Analyst Matt Schulz.
If you’re trying to figure out how to make a financial resolution you can actually keep, you’re in the right place. We asked three financial experts what type of realistic goals you should make, how to tell a good financial resolution from a bad one and what to do when life gets in the way of your financial plan.
In this article:
What makes a good financial resolution?
“A good financial resolution will be one that is well defined and broken down into easy-to-follow steps,” says Steffa Mantilla, Certified Financial Education Instructor (CFEI) and founder of Money Tamer. “If you don’t break down your financial goal into steps on how to achieve them, you’ll likely not work towards the goal or feel lost trying to complete it.”
Mantilla suggests using the SMART goal method to create financial resolutions that are specific, measurable, actionable, realistic, and time-based. If you want to save more money in 2023, for example, here’s how you’d turn that resolution into a SMART goal:
- Specific: Turn “I want to save more money” into “I want to save $500 every month.”
- Measurable: Track the amount of money you add to your savings account every month.
- Actionable: Create a system that allows you to save $500 every month, such as setting up an automatic transfer system that withdraws $115 from your checking account every Friday.
- Realistic: If you can’t save $500 every month without making dramatic changes to your current lifestyle, you might want to reduce your long-term financial goal for savings. (Cutting one or two subscriptions is a sustainable lifestyle change; slashing your entertainment budget to $0 is not.)
- Time-based: Every 30 days, try to add another $500 to your savings account — even if you need to withdraw from your savings during the year to cover an emergency expense.
If the SMART goal method feels overwhelming or overly complicated, don’t worry. Not all of our experts agree with this type of financial planning.
“I’m actually a believer in jumping in and then figuring it out in many cases,” says Schulz. “Many folks might disagree, but I think excessive planning and analysis at the beginning often prevents people from even getting started.”
Schulz suggests taking a more holistic approach to financial resolutions. If you want to save more money in 2023, you don’t need to set a monthly savings goal that you might not always achieve. All you really need to do is get into the habit of putting extra money into your savings account — whether that’s $10 or $100. “Once you’re in that habit, you can figure out what to do in the long run.”
Jim Wang, founder of WalletHacks, doesn’t like the concept of New Year’s Resolutions — including financial resolutions. “I feel making a new year’s resolution can put too much pressure and weight on the goal,” he told us.
In Wang’s experience, many people set resolutions that are either too modest or too ambitious. “You may not be willing to set an aggressive resolution for fear of failure,” Wang explains, “or you set one so aggressive that you fail quickly.”
Wang suggests asking yourself how you want your life to change in 2023 — and planning your finances accordingly.
“What do you hope to accomplish this year that will make your life better? Do you want to retire sooner? Do you want to take a vacation? Let your wants and needs dictate what resolutions to set.”
“As the saying goes, if you shoot for the stars and only reach the moon, you’ve still gone an awful long way.”—Matt Schulz, LendingTree Chief Credit Analyst
What kind of financial resolutions should you make?
When it comes to choosing your 2023 financial resolutions, our experts know exactly where to begin. “If you don’t have an emergency fund or the one you have is too small, that’s where you should start,” says Schulz.
Having an emergency fund in place will help you no matter what happens in 2023 — inflation, a recession or an unexpected financial emergency. Saving an emergency fund can also help you avoid taking on new debt, especially high-interest credit card debt that could be difficult to pay off.
“The two best things you can do for your personal finance is to have an emergency fund of at least three months worth of expenses and to pay off your debt,” Mantilla explains. “Once you’re out of debt and have an emergency fund, you can make resolutions to grow your net worth such as investing or learning about rental properties — but you can’t move forward towards other monetary goals if they’re built on a shaky foundation.”
By resolving to save more money or pay off your debt, you’ll be able to take positive actions today that can help you achieve your long term goals or short term goals — no matter how long it takes. “Getting out of debt this year may not be possible,” explains Wang, “but by putting it down on paper, you share that you’re committed to that result.”
Financial resolutions to consider for 2023
In addition to saving more money and paying off your debt, there are a few specific financial goals you may want to consider for 2023.
Start by adjusting your budget to accommodate higher grocery prices and other costs increased by inflation. “When you increase your budget for items you think will be more expensive, you give yourself breathing room for when prices do go up,” explains Wang. “And if they don’t, you have extra savings.”
Then prepare your finances for a potential recession. If you’re worried about losing your job, for example, update your resume or pick up a side hustle.
If you’re concerned about rising prices, learn how to cook low-cost meals at home — or teach your kids a few essential kitchen skills. Set your family’s expectations in advance, so they know to be ready for low-cost vacations, at-home haircuts and other money-saving maneuvers.
Lastly, make a resolution to prioritize your health and wellness in 2023. This may not sound like a financial resolution, but keep in mind that stress can lead to impulse buying, unnecessary indulgences and other budget-breaking mistakes.
The more you’re able to remain mindful — even during another uncertain year — the more money you may be able to save.
How can you make financial resolutions during uncertain times?
The past few years have shown us that anything can happen — which means that you should be prepared for life to get in the way of your financial plan. However, it doesn’t mean that you should stop trying to achieve your goals.
“I find that it’s helpful to have something you are working towards,” says Wang, “even if that goal is months or even years away.”
One of the best financial goals to work towards is a well-stocked savings account. “The pandemic has clearly shown us just how important these rainy-day savings are,” says Schulz. “We simply have no earthly idea what the future holds for any of us, so all we can do is prepare the best we can to protect our family when tough times come.”
There are many ways to protect your family and set them up for a solid financial future, including opening a 529 Plan for your children, creating a revocable living trust and purchasing an affordable term life insurance policy.
Mantilla has one more option to add to your list — although it might take some major life changes to achieve.
“If you live in a two-income household, one of the best things you can do financially is restructure your life so that your family can survive on only one income,” Mantilla explains. “If one person loses their job unexpectedly, you’ll still have the second income to live on and savings to use until that person gets a job again.”
Mantilla notes that living on a single income might not work for every household. “Living on one income isn’t the easiest and may include making some hard decisions such as moving to a lower cost of living area and trading in your cars,” she says. “In the long term, though, you’ll feel a lot less stress knowing you and your family are set financially and can weather most of what is thrown at you.”
The most important thing to know about financial resolutions
No matter what kind of financial resolutions you make in 2023 — SMART goals, holistic goals or goals that require major life changes — pick resolutions you actually want to work towards that will set you up for financial success. If you’re not that interested in buying a home, for example, you won’t be motivated to save for a down payment. You might, on the other hand, be motivated to set aside money in the hopes that you can start a small business or retire early.
Once you pick a goal that works for you, keep working to achieve your goal — no matter what happens. If you can only save $50 one month instead of $500, that’s fine. If you have to put your student loans into forbearance after an unexpected job loss, that’s fine. As soon as your financial situation improves, start saving more money, putting more money towards your debt, investing more money into your retirement account or setting aside cash for that dream vacation.
“Even if you set an outlandish goal, if you’re consistently working towards it, by the end of the year, maybe you completed 50 percent of it,” says Mantilla. “Perhaps even more. That’s still a lot better than most people. You’re now farther along towards your ultimate goal than you would’ve been had you not set the goal in the first place.”
About Nicole Dieker
Nicole Dieker has been a full-time freelance writer since 2012, with a focus on personal finance and habit formation. In addition to Haven Life, her work regularly appears at Lifehacker, Bankrate, CreditCards.com, and Vox. Dieker spent five years as a writer and editor for The Billfold, a personal finance blog where people had honest conversations about money, and is the author of Frugal and the Beast: And Other Financial Fairy Tales.Read more by Nicole Dieker
Our editorial policy
Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our editorial policy
Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.
Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus
What our customers are saying
Jun 1, 2023
Easy to apply
Easy to apply I just got approved last week so haven't had to make any claims or anything like that (as this is a life insurance policy, guess that's a good thing lol). But what put Haven Life at the top of my list was their intuitive website and easy application process. All done online and then the physical exam was done in my home! Very easy process.
–S Speightread more at
May 25, 2023
There was truly no medical exam for…
There was truly no medical exam for their term life insurance. The customer service was responsive and helpful. The price was comparable to another company with the same terms.
–Bukkyread more at
May 11, 2023
Wonderful company!! I definitely recommend Haven life!! Awesome at finding the best coverage for me! Great coverage that is affordable!! Glad I listened to the recommendation that was given to me about this company
–Blaiseread more at
May 10, 2023
Great Customer Service
I looked into two other companies. The coverage was comparable but I was most impressed with Haven Life’s customer service. I was also impressed with the pricing tools.
–Danielread more at
Apr 19, 2023
Simple & easy.
Pros: -Easy online application -Can get coverage immediately after applying online -Pretty seamless process throughout the experience Cons: -Although told I was covered initially after applying online, I was informed that I needed to get physical check up in order to continue the plan. -Although I’m very healthy, my plan price increased 2x after the physical checkup.
–Malcolmread more at