New Year, new goals. That’s what we always say, isn’t it? Every January, we start with the best intentions: “This is the year I’ll get my finances sorted!”. But by March, those goals often fizzle out as life takes over. So, how can we set financial goals that actually stick—ones that survive the chaos and still make a real impact by the end of the year?
Start With A Money Audit
Before setting any financial goals, it’s essential to understand where your money is going now. Track every expense for a week or a month without judgment. Are you needlessly spending money on subscriptions or impulse buys? Recognising your current habits will guide your plan moving forward.
E.g.,
| Category | Estimated Amount (₹) | Actual Amount (₹) | Difference (₹) |
| Rent/EMI | ₹15,000 | ₹15,000 | ₹0 |
| Groceries | ₹7,000 | ₹8,000 | -₹1,000 |
| Dining Out | ₹2,000 | ₹3,500 | -₹1,500 |
| Subscriptions | ₹500 | ₹800 | -₹300 |
| Utilities (Electricity/Internet) | ₹2,500 | ₹3,000 | -₹500 |
Define Your Goals
Clarity is the key. How often do we throw around vague statements like “I want to save more” or “I should spend less”? Ugh, vague goals are the worst. The thing about money is—it’s numbers. Numbers thrive on specifics. Rather than saying “save more”, say “I want to save ₹1 lakh for an emergency fund by December 31st”. Now, break that down. How much does that mean each month? Okay, weekly? About ₹1,923. That’s easier to grasp and keeps the goal from feeling overwhelming.
E.g., Breaking down your savings goal:
| Goal | Total Amount Needed (₹) | Timeframe | Monthly Target (₹) | Weekly Target (₹) |
| Build an emergency fund | ₹1,00,000 | 12 months | ₹8,334 | ₹1,923 |
| Save for a vacation | ₹50,000 | 6 months | ₹8,334 | ₹1,923 |
| Pay off Credit Card debt | ₹25,000 | 6 months | ₹4,167 | ₹962 |
Additional Reading: Surprisingly Effective Strategies to Overcome Credit Card Debt
Prioritise Your Goals
Not every financial goal can be achieved in one year—prioritisation is key. Think of your goals as buckets:
- Must-do (e.g., paying off debt)
- Nice-to-have (e.g., saving for a vacation)
- Dream-big (e.g., starting investments)
Start with must-dos, add nice-to-haves when possible and save dream-big goals for the future.
Tie Your Goals To What Matters Most
Clarity isn’t enough if the goal isn’t personal. Personal is the keyword here because a goal you don’t care about is a goal you won’t bother with. Why do you want this goal? Maybe it’s to escape the paycheck-to-paycheck cycle, save for a dream vacation or achieve financial freedom for your family. Whatever the reason, make sure it is something that truly motivates you.
Out Of Sight, Out Of Mind
Write your goals somewhere you’ll see every day: a sticky note on your mirror, a vision board or even a daily phone reminder. Keeping your goals front and centre reminds you why you’re working toward them and keeps the motivation alive.
The Power Of Visuals
That initial rush you feel when you set a shiny new goal? Spoiler alert: it fades. That’s where tracking comes in. Motivation alone is unreliable, but tracking creates accountability. Use an excel sheet, an app or even just a notebook—whatever works. Seeing your progress visually helps keep the momentum going.
E.g., Tracking monthly progress for a goal:
| Month | Starting Balance (₹) | Amount Saved (₹) | Cumulative Savings (₹) | Progress Toward Goal (%) |
| January | ₹0 | ₹8,334 | ₹8,334 | 8.33% |
| February | ₹8,334 | ₹8,334 | ₹16,668 | 16.67% |
| March | ₹16,668 | ₹8,334 | ₹25,002 | 25.00% |
Consistency Over Perfection
Life happens. Maybe an unexpected car repair drains your savings or you splurge on a weekend getaway. That’s okay. Perfection isn’t the goal; consistency is. If you fall off track, get up, dust yourself off and keep going. Remember, a single misstep doesn’t ruin an entire year’s progress.
Leverage Accountability
Accountability is hugely underrated. Tell someone about your goal—a friend, partner or mentor. Better yet, find a goal buddy to work with. Sharing your goals creates a sense of commitment that helps you stay focused when the going gets tough.
Celebrate The Wins: Big And Small
We’re quick to criticise ourselves for mistakes but rarely celebrate progress. Hit your first savings milestone? Cut down your cafe visits? Paid off Credit Card debt? Celebrate it! Treat yourself to something small but meaningful. Celebrating fuels motivation and reinforces the habits that drive success.
Automate Your Savings
If you’re relying on memory to save money, chances are you’ll forget or procrastinate. Automate it! Set up automatic transfers to a savings account. Automate bill payments too. Treat your savings as a non-negotiable expense. This small step makes sticking to goals nearly effortless.
Reframe Your Money Mindset
Success isn’t just about spreadsheets and budgets, it’s about the mindset. Instead of thinking, “I’m bad with money”, tell yourself, “I’m getting better with money every day”. Small shifts in how you think can make a big difference in staying on track with financial goals.
Goals Aren’t Set In Stone
Check in with your progress monthly or quarterly. Ensure your goals are still realistic and aligned with your top priorities. Maybe you need to adjust based on a new life event or financial discovery. Flexibility is just as important as persistence.
Additional Reading: Personal Finance Fails (and How to Fix Them)
Don’t Overlook Your Credit Score
Your Credit Score plays a crucial role in your financial well-being, influencing everything from loan approvals to interest rates. A strong Credit Score can save you thousands of rupees over a lifetime, so it’s worth making it a goal this year. Start by understanding your score and identify areas for improvement.
Focus on paying bills on time, keeping your credit utilisation below 30% and avoiding unnecessary credit inquiries. If you have outstanding debt, prioritise tackling high-interest balances first while maintaining regular payments on all accounts. Remember, small consistent actions can steadily boost your score over time.
Factors affecting your Credit Score:
| Factor | Weight | How To Improve |
| Payment History | 35% | Pay all EMIs, Credit Card dues and utility bills on time |
| Credit Utilisation | 30% | Keep utilisation below 30% of your credit limit |
| Credit History Length | 15% | Maintain old credit accounts and don’t close them abruptly |
| New Credit Inquiries | 10% | Avoid unnecessary loan or Credit Card applications |
| Credit Mix | 10% | Include a healthy mix of secured (home/car loans) and unsecured credit (Credit Cards) |
Additional Reading: 3 New Year’s Resolutions To Raise Your Credit Score In 2025
At the end of the day, financial goals are about progress, not perfection. You don’t need to get it right all the time—you just need to keep going. With clarity, motivation and consistent effort, this year can truly be different.
Copyright reserved © 2025 A & A Dukaan Financial Services Pvt. Ltd. All rights reserved.
