6 reasons why financial New Year’s resolutions fail

By Anna Baluch | Published on October 21, 2025

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Financial resolutions, like paying off debt or building an emergency fund can lead to financial success in the new year and beyond. Unfortunately, however, many people struggle to keep them, despite their good intentions. Here’s a closer look at the answer to the common question, “why do financial New Year’s resolutions fail” and what you can do to make them stick.

1. Lack of specifics

It can be difficult to keep track of a vague resolution like “pay down debt”. When you’re more specific and say something such as "put $1,000 towards my student loans every month,” it'll be easier to come up with an actionable plan that can help you succeed. As you come up with financial New Year’s resolutions, be as specific as possible so you know exactly what it will take to follow through with them.

2. Unrealistic expectations

In a perfect world, you’d be able to pay off all your debt in one month. Since this may not be the case, it’s important to be realistic about what you can and cannot achieve. If you aim for too much, you’ll likely set yourself up for disappointment. Make sure your resolutions are attainable for your unique budget, income, and situation.

3. No accountability

Even though your New Year’s financial resolutions may be important to you, it can be tough to stay committed to them, especially if you have a lot on your plate. When you need some extra motivation or a push to keep moving forward, an accountability partner could come in handy. Share your financial goals with a trustworthy friend or family member who is willing to hold you accountable when you need it most. This person should support you when you’re struggling and celebrate with you when you’re succeeding.

4. Impulse buying

Impulse buying, which occurs when you make spontaneous purchases can derail your resolutions. If you splurge on a new pair of shoes that were not in your budget, for example, you may no longer be able to pay off your student loans. To avoid impulse buying, unsubscribe from marketing emails from your favorite retailers, create shopping lists and stick to them, and stay away from malls and other places that tempt you to make unplanned purchases.

5. Fear of failure

Most financial resolutions take a great deal of planning, effort, and dedication to achieve. Unfortunately, many people are afraid they’ll fail and as a result procrastinate or quit working towards them altogether. A positive attitude and optimistic mindset are essential if you want to achieve your financial resolutions in the new year.

6. External pressures

It’s not uncommon for people to set a financial resolution because they believe it’s what society wants them to do. When this happens, they’re usually less motivated to stick to it. Be sure your resolutions are what you genuinely hope to accomplish, not what your friends, family, or social media may encourage you to do.

Refinance with Earnest and set yourself up for success in the New Year

By refinancing¹ with Earnest, you may reduce your student loan costs and in turn, free up some cash to put toward your New Year’s financial resolutions. Check your rate to see how much you might save with our fee free refinance². It’s a quick two minute process that won’t hurt your credit score.

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About the Author

Anna Baluch

Anna Baluch is a freelance finance writer from Cleveland, OH. She enjoys writing content that helps people from all walks of life make good financial decisions. Her areas of expertise include student loans, refinancing, mortgages, personal loans, budgeting, and debt management.

Disclaimer

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.