Welcome to BW’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how to tackle financial regrets, set achievable money goals, and make 2025 your best year, financially.
How can you avoid repeating my biggest financial regrets this year? What are simple steps to improve your savings and spending habits? Hosts Sean Pyles and Sara Rathner discuss financial regrets and practical resolutions to help you take control of your money in 2025, beginning with a discussion of top financial regrets from 2024. Then, Sara talks to BW Senior Economist Elizabeth Renter about strategies for creating achievable money goals and overcoming common financial missteps. They share tips for mindful spending, setting boundaries for entertainment and dining budgets, and building habits that improve your credit score.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
It’s a new year. We’ve left 2024 behind. All there is now is to look forward, right? Well, yes. But it’s also a good time to reflect on what could have gone better in our financial lives last year and what we can learn from our regrets.
There’s always room for improvement, especially when it comes to savings. You can always save more. The top-cited regrets involved saving in 2024, or the lack thereof. Twenty-nine percent of Americans regretted not saving for emergencies, and 27% regretted not saving for financial goals last year.
Welcome to BW’s Smart Money podcast. I’m Sean Pyles.
And Sara, before we get to anything else, Happy New Year.
And a very Happy New Year to you, too, Sean. So, did you Auld Lang Syne your way into January?
I am not even sure what that means, Sara.
Me neither, but I remember that line from When Harry Met Sally. Millennials, you know what I’m talking about. Older than that, you know what I’m talking about. Gen Z, When Harry Met Sally is a great movie, and you should watch it. Anyway, at the end, they’re at a New Year’s Eve party, and she says that she thinks that song is about old friends, so I’ll buy that.
I’ll buy that too, even though I have not seen that movie. I’m such a young millennial over here.
What? So now you have a goal for 2025: watching that movie.
I’ll add it to my list, which is already very long.
Anyway, Sara, do you have any big money goals for the year?
Well, this is kind of a three-year goal, but we’re saving up to eventually finish our unfinished basement. Otherwise, I have some travel goals, which are sort of like money goals because travel costs money. I just booked a trip with an old friend. We’re going to escape from our children and just hang out and eat, drink and be merry. Also, trying to plan a trip with my family too. What about you?
Those trips sound really fun. On my end, after a few years of pretty tame financial goals, I have a lot on my plate this year. I’m going to sell my house this spring. I’m hopefully going to have my financial planning firm up and running by mid-year. This fall, my partner and I are finally getting married, and we have a trip to London somewhere in the mix too, so I have a lot going on in 2025.
Yes, you do, but it’s all good stuff.
So, Sean, even though we want to move forward and into this new year, today we are going to harken back to the old days of last year, all the way back a couple of days, and think about what we could have done differently and/or better when it comes to our finances. And to that end, BW does this annual survey at the end of each year asking people about their money regrets. Ouch. We’re going to hear about that today.
And about how to turn those frowns upside down. I’m always up for learning from past mistakes; otherwise, what’s the point of making them?
I would rather not make them in the first place. But if they’re going to be made anyway, yes, let’s learn from them.
As we start a series of episodes looking at your money in 2025, we want to hear what you think, listeners. What are you working on in your financial life as you start the new year? Leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-NERD, or email a voice memo to [email protected].
Up next, we’re talking with BW Chief Economist Elizabeth Renter about that survey and her advice for making this coming year the best ever — financially speaking, at least.
Elizabeth Renter, Happy New Year. And I really hope that you don’t have very many regrets from 2024. I mean, at least not financial ones, maybe some fun ones.
Hey, Sara. Thanks, and Happy New Year. Thanks for having me.
I plan to keep some of those regrets to myself. It seems like the right decision. I am considering spending $100 every two weeks on entertainment expenses, which would be a total of $200 per month. To manage this budget, I could limit the number of outings or dining out occasions. For example, instead of dining out five nights a week, I could cut it down to three nights or only spend on weekends. By setting these guidelines and boundaries, I can control my entertainment expenses effectively. If I approach it week by week rather than for the whole year, I can take into consideration all the regular occurrences that may hinder my progress towards my goal, and be more forgiving of myself when setbacks occur.
Yes, the annual approach can feel like an all-or-nothing situation, making it easier to give up when minor slip-ups happen. I prefer the weekly approach because it allows you to start fresh each week.
Let’s view this as a collection of intelligent strategies to improve financial well-being throughout the year. By working towards these goals week by week, minute by minute, or hour by hour, progress can be made. Starting with saving, automating transfers into a savings account immediately after payday has been effective for me. This way, the process is streamlined and doesn’t require constant attention.
If you’re wondering how to find the money to save, consider cutting out unnecessary expenses and redirecting that money into your savings. For me, automatic transfers into different savings accounts have been beneficial in organizing my finances efficiently.
For listeners saving towards specific goals, utilizing a free savings calculator can help track progress and stay motivated. Moving on to spending wisely, being mindful of your actions and slowing down can prevent impulsive purchases. Avoiding the use of credit cards and setting a holding period before making online purchases can also help curb overspending.
By being more deliberate with your spending habits and making it slightly more challenging to make transactions, you can avoid unnecessary purchases. Additionally, choosing the right credit card can optimize your spending habits.
I hate searching for parking. It’s one of my driving annoyances.
If you’re planning to use a credit card, make sure that the items you’re purchasing can be paid off within each billing cycle and opt for a card that offers rewards such as cash back.
Now, I don’t have to deal with that anymore. I can just relax on my couch with my phone and spend my money, which can be both a blessing and a curse.
Let’s conclude with some final suggestions for a happy and financially sound 2025. Is there anything we haven’t covered?
If you have a specific financial goal for the year, I recommend checking out the resources available at BW. This is not just a plug, I use it frequently. The savings calculator you mentioned earlier? I used it recently to compare rates on different savings accounts. So, for specific guidance on a particular financial goal, BW is a great resource.
Personally, my approach to money (and life in general) is to strive for improvement consistently and show myself grace. I suggest this as an overarching strategy for a financially healthy 2025. Wherever you are on your financial journey, aim to make better decisions and progress a little further than before. Some days, you may take significant steps like opening a CD with your tax refund, while other days, saving a few dollars on groceries may be your accomplishment – and that’s perfectly fine.
When faced with setbacks or unexpected expenses (which will happen), be kind to yourself and keep moving forward.
Take it one step at a time. It’s alright. It doesn’t have to be the whole year, and not every choice you make has to be flawless.
Every day presents a learning opportunity when it comes to your finances. BW Senior Economist Elizabeth Renter, thank you for joining us. You can leave the New Year’s decorations at the door; I’ll save them for later, just for fun.
Sara, I appreciate how you and Elizabeth keep it real. We’ve been against resolutions for some time on Smart Money because, as you both discussed, resolutions can lead to unnecessary disappointment and unrealistic expectations. We’re not saying don’t aim high, because I’m certainly gearing up for all I want to achieve this year, but if things don’t go as planned, that’s okay. Just give it your best shot.
Remember to give yourself some flexibility, and it’s perfectly fine for your goals to change during the year.
It’s always helpful to review what worked well and what didn’t within a specific timeframe. It doesn’t have to be year-to-year; it can be whatever suits you best. Having that perspective can be incredibly valuable as you progress in your financial journey.
And that applies to every aspect – from budgeting to credit to housing to careers to investing.
Great lead-in, Sara, because we’ll be covering all those topics as the month progresses. Next week, we’ll provide advice for those interested in learning more about investing.
I believe that people should start by building a safe and steady portfolio of index funds, then consider speculating with any remaining funds. I practice what I preach in that regard.
That’s all for this episode. Do you have a money question? Reach out to the Nerds by calling or texting us at 901-730-6373. You can also email us at nerds@nerdwallet.com. Remember to follow the show on your preferred podcast platform for new episodes.
This episode was produced by Tess Vigeland, with editing assistance from myself. Amanda Derengowski handled fact-checking, and Megan Maurer mixed the audio. Special thanks to BW’s editors for their support.
Disclaimer: We are not financial or investment advisors. This information is provided for general educational and entertainment purposes and may not be applicable to your specific situation.
Until next time, turn to the Nerds for all your financial queries and advice.
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