In 2025, the most popular New Year's resolution is to save more money, according to a poll from Statista. However, most New Year's resolutions fail by the end of the second week in January. While the obvious conclusion is make a budget, it can be overwhelming for some trying to sift through all the online suggestions. Denver7 spoke with a credible source — Janelle Herrera from On Tap Credit Union — about some easy ways to set you up for success. She breaks it down into four steps.
- Figure out your income. This should include any side hustles or additional ways you make money.
- Track your expenses. Herrera suggests your essentials like food, housing and other bills make up 50% to 60% of your expenses. You should also include any money you put toward investments and savings, such as a 401K.
- Set aside money for fun. Herrera said, this should be roughly 10% to 20% of your income. "You need to have some guilt-free spending," Herrera said. "You should have fun with it. You shouldn't fee guilty about taking care of yourself or socializing with friends."
- Set a goal. Whether you're looking to buy a house, plan a wedding or take a vacation, Herrera said having a goal will help you stick to your budget. "Keeping your goal top of mind, that's going to help you not stray and do extra spending. And you can celebrate the little wins around that goal," Herrera said.
Once you have your budget set up, Herrera said the next step is to decide how you want to keep track of everything. You could use a spreadsheet, an app or even work with your bank or credit union. Herrera also suggested setting up direct deposit and automatic bill payments if you're able — to take out some extra steps.
Finally, Herrera said a lot of people partake in "No Spend January," where you only spend money on essentials. She said it's a good way to reset after spending extra during the holiday season and can also help create better spending habits. However, you don't have to limit this to January.
"It's always a good time to set up a budget," Herrera said.
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