4 Signs You Need to Make Major Money Changes in 2025

The New Year should bring you new financial health, especially if managing your money has been difficult this year. If you find yourself in debt, without emergency savings or living month to month are all indicators that you need a renovation.

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Luckily, January offers the perfect opportunity to restart. Below, experts share the top signs that you need to make significant changes in 2025.

Also see the cost of unmet financial goals every new year.

Your expenses exceed your income

According to Dennis Shirshikov, head of the company’s growth department Summer and economics professor at the City University of New York, your expenses consistently exceeding your income is a clear sign that you need to make some serious money changes.

“When monthly bills and discretionary expenses start to exceed your income, that’s a red flag,” he said. “For example, I’ve seen professionals with hefty salaries still struggle financially because they haven’t adjusted their spending habits to match their incomes.”

Nishay Rawal, CPA, Founder NR Taxes and Consultingagreed that one of the main signs is the constant excess of expenses in relation to income.

“I have seen clients who, despite earning significant income, went into debt due to uncontrollable lifestyle inflation,” he said. “For example, a young techie from Silicon Valley came to me with a six-figure income but zero savings.”

But there are ways to turn the situation around. “By working on a budget plan and putting needs before wants, she was able to change her financial path by creating an emergency fund and starting an investment portfolio,” Rawal said.

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You rely on credit to maintain your lifestyle.

Another indicator, according to Shirshikov, is a strong dependence on credit to maintain a lifestyle. If you frequently use credit cards to meet basic needs or have growing debt without a repayment strategy, it’s time to reevaluate it.

“I remember a case where a person accumulated high-interest debt without changing their spending patterns early on, which led to financial stress later on,” he said.

You neglect savings and investment goals

A less obvious sign, Shirshikov added, is neglecting one’s savings and investment goals.

“If you haven’t recently increased your contributions to retirement accounts or emergency funds, you could be jeopardizing your future financial security,” he explained. “I often teach my students about the power of compound interest and how starting early can make a significant difference.”

Rawal noted that missing financial goals or deadlines, such as saving for retirement or paying off debt, is a telltale sign, especially in the business world.

“At NR Tax & Consulting, I advised several small business owners who were having cash flow management issues that were impacting their ability to meet savings goals,” he said.

Are you constantly stressed about money?

Feeling constantly worried or stressed about money is also an important sign.

“Financial health is not just about numbers; it’s about peace of mind,” Shirshikov said. “If money problems are affecting your well-being, it’s important to take action.”

Tips for changing money

To start making these changes, Shirshikov says, try creating a comprehensive budget that tracks all of your income and expenses.

“This transparency will help you identify areas where you can cut costs,” he said.

He suggested seeking advice from a financial advisor who can offer personalized strategies. Additionally, he explained that educating yourself with reliable financial resources can empower you to make informed decisions.

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This article originally appeared on GOBankingRates.com: 4 Signs You Need to Make Major Money Changes in 2025