If you want to improve your finances in 2025, financial experts believe everyone should take the same first step.

“So number one is get on a budget,” said Jade Warshaw, financial coach for Ramsey Solutions.

You have to determine your cash flow — how much money is leaving your household and how much is coming in.

“Until you understand your budget and your cash flow, it would be almost impossible to stick to a new year’s plan of getting out of debt,” said Leslie H. Tayne, financial attorney and credit and debt expert.

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Once you do that, figure out if you prefer to track your finances on paper, via spreadsheets, or through apps on your phone.

“The big step is listing the debts, prioritizing, and then you know whatever money is there, assign it a task and get rid of the debt,” said Lisa Leslie, financial management extension agent for UF/IFAS.

Next, decide what your goals are, both long-term and short-term.

Also, remember not every method is right for everyone. Sometimes, the long-term goals can be too overwhelming, so it may be better to work in small chunks.

“It is very difficult to stick to long-term financial goals simply because things do change. Finances are dynamic. That means that lots of things can interfere with your cash flow and your budget on a daily basis,” said Leslie Tayne.

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Is it better to pay off higher debt with higher interest rates or small balances first? This just depends on your personal situation. There’s no right or wrong answer.

“You can even use combinations of the two and revisit it and be fluid about your changes so you can stick to your new year’s goals of getting out of debt,” said Leslie Tayne.

It’s okay if you have to change your method a few months into making a plan. Just remember, the road to becoming debt-free is bumpy.

“And at times also you might find that you take one step back and two steps forward. That’s really common and normal when it comes to financial planning and when it comes to budgeting and sticking to goals,” said Leslie Tayne.

Remember it takes a while to get out of debt and rebuild your credit, making it frustrating.

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Experts believe it’s important to give yourself grace through this process and do the best you can.

“Sometimes, as long as people can make ends meet because it’s so expensive. So sometimes you just have to take care of the necessities and you can’t take care of the debt. So you know you just have to be realistic,” said Lisa Leslie.

This story was originally published by Larissa Scott at Scripps News Tampa.