3.) Start a careful budget by tracking and categorizing all of your expenses.

“After three years of inflation, your pay increases are likely still playing catch up to your monthly expenses, leaving you wondering where all the money is going," said Greg McBride, chief financial analyst at Bankrate. "Make that monthly budget for 2025 and resolve to track your spending against it throughout the year."

McBride said that you may need to make adjustments during the year as certain expenses increase, which would require cutting back in other areas.

“Calibrate your spending with your income, and any month you spend less than budgeted, transfer the difference into your savings account, ideally a high-yield savings account,” he said.