Nearly Two-Thirds Abandon New Year’s Savings Goals By February — 3 Tips On How To Stick To Them

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Making New Year’s resolutions is easy enough, but sticking to them? Not so much. That’s especially true of savings goals.

Nearly two-thirds (63%) of Americans abandon their New Year’s goals by February, according to a study published by the Open Journal of Social Sciences. This means most Americans have likely already scrapped their 2025 savings goals.

There are numerous reasons people give up on New Year’s goals, and many have to do with unreasonable expectations. Research from The Ohio State University’s Fisher College of Business identified the following four key reasons people often fail at New Year’s resolutions:

• Basing resolutions on tradition rather than specific needs.
• Failing to account for unexpected obstacles.
• Not putting enough emphasis on attaining smaller goals as part of a larger plan, which gives you a chance to celebrate each win.
• Not setting up a system that holds you accountable for your goals.

If you’re among those who have a hard time sticking to New Year’s savings resolutions, it’s not that hard to turn things around.

Here are three tips to help you reach your goals in the future, according to Mary Morris, CEO of Commonwealth Savers.

Use The 50/30/20 Rule

Under this rule, half of your income should go toward necessities like housing, transportation and food, Morris said. Another 30% should go toward “wants” such as concert tickets, clothes and vacations. The remaining 20% should go toward savings, from bank and retirement savings to college funds.

Budget and Track Your Spending

“Whether you manually input your bills and expenses into an Excel or you use a budgeting app or calculator, tracking your spending is helpful to gauge progress and areas for improvement,” Morris said. “And, with the rise of AI, personal finance assistants are at your fingertips.”

Establish SMART Goals

“Any financial goal should be specific, measurable, achievable, relevant and time-bound [SMART],” Morris said. “Breaking down your goals into these categories makes you 90% more likely to achieve them.”

Here’s a brief look at how SMART goals might work, according to Morris:

• Specific: “Consider opening a 529 account to save for education expenses, whether for a child, grandchild, or even yourself.”
• Measurable: “Set a savings target that fits your budget — this could be a certain amount per month or aiming to cover a percentage of future tuition costs.”
• Achievable: “Start with small contributions and increase them over time, especially when receiving bonuses, tax refunds, or gift contributions from family.”
• Relevant: “Saving for education helps reduce reliance on loans and provides more opportunities for lifelong learning.”
• Time-bound: “Set a goal to check in on your progress annually and adjust as needed based on financial changes and education plans.”

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