4 Signs You Need To Make Major Money Changes in 2025
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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A new year should bring a new financial you — especially if managing your money has been challenging this year. If you find yourself in debt, without emergency savings or living month to month, these are all indicators that you need a do-over.
Luckily, January offers the perfect opportunity for a restart. Below, experts share the top signs that you need to make some significant changes in 2025.
Also see the cost of unfulfilled financial goals each new year.
Your Expenses Exceed Your Income
According to Dennis Shirshikov, head of growth at Summer and professor of economics at the City University of New York, your expenses consistently exceeding your income is a clear sign you need to make major money changes.
“When monthly bills and discretionary spending start outpacing what you bring in, it’s a red flag,” he said. “For example, I’ve seen professionals with substantial salaries who still struggle financially because they haven’t adjusted their spending habits to align with their earnings.”
Nischay Rawal, CPA, founder of NR Tax & Consulting, agreed that one major sign is consistently overspending relative to income.
“I’ve seen clients who, despite having substantial earnings, slip into debt because of unchecked lifestyle inflation,” he said. “For instance, a young tech professional from Silicon Valley came to me with a six-figure income but zero savings.”
But there are ways to turn a situation like that around. “By working on a budget plan and prioritizing needs over wants, she was able to redirect her financial path by creating an emergency fund and starting an investment portfolio,” Rawal said.
You Rely On Credit To Maintain Your Lifestyle
Another indicator, according to Shirshikov, is relying heavily on credit to maintain your lifestyle. If you’re frequently using credit cards to cover basic necessities or have mounting debt without a repayment strategy, it’s time to reassess.
“I recall a case where an individual accumulated high-interest debt by not addressing their spending patterns early on, leading to financial stress down the line,” he said.
You Neglect Savings and Investment Goals
A less obvious sign, Shirshikov added, is neglecting your savings and investment goals.
“If you haven’t increased your contributions to retirement accounts or emergency funds recently, you might be hindering your future financial security,” he explained. “I often tell my students about the power of compound interest and how starting early can make a significant difference.”
Rawal noted that failing to meet financial goals or deadlines, such as saving for retirement or paying down debt, is a clear sign, especially in the business world.
“At NR Tax & Consulting, I’ve guided several small business owners who struggled with cash flow management, impacting their ability to meet savings goals,” he said.
You’re Constantly Stressed Over Money
Feeling constant anxiety or stress about money is also a crucial sign.
“Financial health isn’t just about numbers; it’s about peace of mind,” Shirshikov said. “If money worries are affecting your well-being, it’s essential to take action.”
Advice for Making Money Changes
To get started with making these changes, try creating a comprehensive budget that tracks all your income and expenses, according to Shirshikov.
“This transparency will help you identify areas where you can cut back,” he said.
He suggested seeking advice from a financial advisor who can provide personalized strategies. Additionally, he explained that educating yourself through reputable financial resources can empower you to make informed decisions.
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