An advisor suggests now is the perfect time to perform a financial reset, and here's the reasoning behind it.

• The 2025 tax filing season officially opens Jan. 27.
• Top financial resolutions for 2025 include saving and earning more, spending less, improving credit scores, building an emergency fund, and paying off or consolidating debt.
• You can take certain actions to achieve your financial objectives for the year.

A December poll by Discover Personal Loans revealed that over half of U.S. consumers planned to set a financial goal for 2025.

It's not too late to set money goals for the new year, experts say, and now is a great time to start.

"According to financial advisor Jordan Awoye, managing partner of Awoye Capital in New York City, the best time for a financial reset is typically at the start of the year. This allows individuals to begin anew, assess their financial performance from the previous year, and start with a fresh slate."

As the 2025 tax filing season commences on Jan. 27, you can assess your priorities and goals for the upcoming year while reviewing your finances from the previous year, advised Awoye.

Discover found that saving and earning more, spending less, improving credit scores, building an emergency fund, and paying off or consolidating debt are among the top resolutions. However, almost all respondents expect challenges such as inflation, the state of the economy, unexpected or current expenses to hinder their ability to achieve these goals.

In early November, a poll conducted by Morning Consult on behalf of Discover involved 2,201 adult participants.

Focus on what you can control

Don't let the state of the economy or past money mistakes hold you back from moving forward.

"Corbin Blackwell, a certified financial planner in New York City, advised that if you lack a positive mindset and are struggling with self-doubt, you may continue to spiral downward. He emphasized that starting small is key, whether it's through saving or paying off debt gradually."

Determine your strategy: Save or invest?

Natalie Taylor, a CFP and founder of The Goodland Group in Santa Barbara, California, advised that it's crucial to comprehend market volatility and its potential impact on your financial objectives.

Taylor categorizes certain resolutions, such as maintaining a fully-funded emergency savings account, as "base hit" goals. These goals may be short-term or focused on preserving cash assets, and saving may be the most effective strategy for achieving them.

"She advised against using more aggressive strategies to achieve investment goals from a cash-based perspective. Instead, for cash-based goals, we should consider a more standard, diversified portfolio using high-yield savings or certificates of deposit."

Investing in a diversified stock portfolio and possibly more aggressive strategies may be necessary to achieve "home run" goals such as fully funding your child's college education, buying a second home or retiring early, according to Taylor.

To achieve your goals for the year ahead, plan the necessary steps.

Steps to take now to achieve your financial goals

1. To build a better budget, track your monthly spending and savings from your take-home pay. Awoye advised asking yourself, "Do you have more money coming in than going out? If not, identify expenses to cut and explore other revenue streams. While you must pay for necessities and recurring bills, aim to save three to six months' worth of expenses to avoid using your credit card for unexpected expenses.
2. Paying off high-interest debt and building savings are both important goals, but some advisors suggest prioritizing the debt first. According to Blackwell, paying off credit card debt, which typically carries a high interest rate, is the most urgent priority.
3. To save for retirement, you may want to consider contributing to an IRA or 401(k) or workplace retirement plan, and put any extra money into a taxable brokerage account to maximize your savings. The length of time you have to save can impact the types of investments you choose.

Achieving your goals is important, so you've set the stage for completing your financial reset.

Blackwell stated that the location of financial success ultimately depends on one's definition of success.