Turning your finances around in just 12 months is possible with focus and commitment.

The initial move is a month of no unnecessary expenses. Cut unnecessary costs and spend only on necessities, such as food, rent or mortgage, and travel expenses. This resets your spending habits and releases funds to pay off loans and grow your emergency fund. Use this momentum to create a budgeting plan, ensuring every dollar is accounted for.

Next, find ways to increase your income. Take on freelance gigs, declutter and sell things, or learn new skills to get a better-paying position. Every newly earned money should be used for your priorities, like building an emergency fund or paying off debt. Speaking of debt, adopt the snowball or avalanche method—starting with the smallest debts or focusing on high-APR debts, depending on your preference.

Acknowledge minor achievements along the way to manage finance keep your momentum. Whether it’s paying off a loan or building your starter fund, each success shows that you’re making your goals a reality. With consistency and careful planning, a complete shift in your finances in a year isn’t just a wish; it’s your achievable success.