If you decided to save more money this year, you’ve made the most popular New Year's resolution. For good reason: Minimizing financial stress is good for its own sake, and for your mental and physical well-being too.

One extremely common — and very stressful — issue is debt. As of the third quarter of 2024, Americans carried $1.06 trillion in credit card debt. If debt is your primary concern, first make a list of all the debt you carry, and at what interest rates. From there, advisers suggest one of two routes to pay them down.

In a “debt snowball,” recommended if you want quick wins to stay motivated, you pay off your smallest debts first, then put the combined installments you had been paying toward the next debts, and so on until you tackle the big ones. If you’re more analytical and prefer to minimize total money paid over time, go for the “debt avalanche,” in which you first tackle the highest-interest debts.

Either way, never pay a lower-interest debt, such as a medical bill, with a credit card (even if it’s one with a temporary zero or low interest rate). And in every case, it pays to ask to renegotiate deadlines and terms, as creditors may be satisfied with partial repayment rather than none.

Once your debt is under control, focus on paying off credit cards every month. And to build up your credit score, don’t use more than 30% of the credit available to you ($3,000 of a $10,000 credit limit, for example).

More broadly, financial freedom comes from living within your means — which you can establish with a monthly budget. But everyone’s financial path is different, so tailor general advice to your own situation. The so-called 50-30-20 rule, for example, calls for allocating 50% of your income to needs, 30% to wants and 20% to saving and paying down debt. But in and around New York City, where housing alone can take a substantial portion of your paycheck, you may need to adjust these ratios.

When setting financial goals, start by asking yourself why you want to save or pay down a debt. The answers may seem self-evident, but expressing them in the most specific terms possible will help you develop concrete numbers for your budget. And the question why prompts self-reflection and examination of your own ambitions and possible anxieties around money.

With actual dollar amounts, you can then set a concrete plan and a timeline, and strategy for achieving it. Smaller, short-term goals, such as saving for a vacation, may be met by cutting back current expenses, then putting the savings toward your goal. Even small changes, such as the financial-advice cliche of making your own coffee or lunch, can add up quickly. (But don’t skimp on repairs and maintenance — whether for pricey belongings or for your own body. Regular dental cleanings cost less than emergency oral surgery, for instance.)

For goals that have a longer timeline, such as a retirement fund, you might focus less on saving and more on earning additional income. That could mean a new side hustle — or even working less, and using the time to pursue an additional degree or certification, for higher earning down the road.

And as much as finances are about hard numbers, there are also plenty of mental tricks that will help your bottom line. Set up an automatic transfer to a savings account on payday, for instance, and you’re less likely to miss that set-aside chunk. Delay one-off purchases by a week or a month, and you might find you don’t need the item after all. Most of all, when you waver, remember the goals you’ve set, and how good you’ll feel when you’ve achieved them.