How to Make Practical Plans to Start Saving More

For many people, financial resolutions might be light-hearted fodder for small talk at holiday parties.

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Not for Cynthia Luna. She is dead serious about them.

The financial planner from Texas sends all her clients New Year's cards with their resolutions written down in black and white. If you stray, prepare to hear about it.

"The right way is to use baby steps and make them achievable and encouraging – because you don't want to fail at your financial resolutions," says Ms Luna, a principal at Moonshot Financial Group.

Financial resolutions allow you to start the new year on the right foot. In fact, 65 per cent of Americans have drawn them up for 2025, according to a new study from money manager Fidelity Investments.

The winning responses are classic: Save more money (43 per cent), pay down debt (37 per cent) and spend less (31 per cent).

But for one of the only times in the history of Fidelity's 16-year survey, people looking to save money are favouring short-term goals over long-term ones, by 55 per cent to 45 per cent.

That indicates people do not really have the luxury of thinking 20 or 30 years off and are instead focusing on right now – paying the rent or mortgage, buying fuel, covering monthly utility bills and putting food on the table.