What’s Your Financial Next Normal?
- Your current financial situation doesn’t have to be forever.
- If you're committed to reaching your financial goals, you can build new financial habits to experience a new financial normal.
- Re-imagine your financial future by learning to budget, increasing emergency savings, and prioritizing investing in your future.
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Your current financial situation doesn't have to dictate your future. There’s always an opportunity to boost your financial savvy and develop habits that set you up for success, even if you’re rebuilding after debt relief. Small, yet powerful changes could get you closer to a new financial normal. Here are some ideas to create a new financial normal that better aligns with your financial goals.
How You Spend Your Money
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How you manage your money has a direct impact on your financial health. Take spending choices. If you’re not tracking your spending, how do you know you’re not overspending? Every spur-of-the-moment restaurant delivery order makes it harder to reach financial goals. Enough chai lattes can cut into how much you save for the future. You might be accumulating credit card debt—an expensive way to pay for an order of tacos.
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If you’re unsure how much money you spend or where your money goes, you’re not alone. But it's never too late to change your spending habits to fit your new financial normal.
First step in a spending overhaul: Review your bank and credit card statements. You may want to check at least a few months of statements, in case some months have unusual, one-off expenses. Think about which costs could be cut and where you can spend less.
Establish a monthly budget and set some spending limits. You may find Freedom Debt Relief’s budget worksheet helpful.
Your new spending habits could help you free up some money to reach your personal finance goals.
If you have outstanding debt, look for non-essential expenses to cut until it’s paid off. If your debt feels unmanageable, it may be time to explore debt relief.
Related: How to Make a Budget Plan Even If You Hate Math
How You Save Your Money
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A lot of people aren’t taught how to save. So if you’re someone who isn’t saving systematically on a regular basis, that’s normal for about half of Americans. You may not have an emergency fund or a retirement account. And that’s OK. Start today.
If you’ve begun looking at how you spend, congratulate yourself. Spending and saving are two sides of the same coin. The less you spend, the more you could save.
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An emergency fund doesn’t just help you take care of those surprise bills that life throws at you. A cash cushion could also help you feel more financially secure. It's never too late to begin saving—and there’s no such thing as a goal that’s too small.
If you have just a few dollars or no savings at all, consider setting a goal of $500. You might save $10 a week, and watching your balance grow can help you stay motivated. At that rate, you’ll have $520 in a year.
If you don't have enough cash to save as much as you'd like, look for ways to increase your income.
Related: How to Save More Money
How You Invest Your Money
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Investing can be intimidating. And it’s common for people to think they have plenty of time and can start investing some other day. But if you want a more comfortable life later on, building a nest egg is the way to get there.
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Invest in future you. Now is a great time to forge an investing strategy. Start by learning more about investing. Big brokerages like Fidelity, Vanguard, and Charles Schwab have information and tutorials on their websites, and licensed financial advisors who can explain what investment accounts might work for you. If you have a 401(k) account at work, the plan administrator can help you figure out if you’re investing yours in the way that makes sense for you.
If you’re a new investor, consider starting with some low-risk investments. low-risk investments to explore are:
Bonds. Compared to stocks, bonds generally pose less risk. But they aren't 100% risk-free. Typically, you buy a bond for less than its face value. You may earn interest payouts while you hold the bond. You can cash in your bond for the full face value once the bond reaches maturity. You’ll know the timeline when you buy the bond.
Money-market funds. This is a mutual fund, which basically means a collection of investments. Holding a variety of investments is a way to lower your risk of loss. Money market funds typically invest in low-risk assets like cash, Treasury bills, and certificates of deposit.
Certificates of deposit. A certificate of deposit (CD) is a kind of savings account with a fixed interest rate and withdrawal date. It comes with a guaranteed return. But you usually have to leave your money in the CD account for a certain amount of time before you can get those earrings. CDs terms often range from six months to five years.
Robo-advisor apps are a type of investing app. They can simplify the process of investing in your future if you’re new to investing. A robo-advisor will ask you some questions to determine your risk tolerance and goal. Then, they’ll invest your money for you using special algorithms that match the kind of investor you are.
You can become a retirement saver with little effort.
Related: Seven Ways to Save More for Retirement, Starting Now
How You Bank and Shop
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If you pay extra bank fees, that’s a bite out of your balance.
Credit card fees could be another swing at your finances. For example, if you carry a balance, credit card interest is expensive. But you can commit to making changes on your quest to reach your next financial normal.
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Ready to slash the fees you pay? First, check whether you’re paying monthly maintenance fees. If you are, find a bank that charges zero for maintaining an account, even if you don’t have a lot of money in the bank. If your local banks don’t offer free accounts, look online. Switching to a fee-free bank could result in significant savings.
If you can, pay your credit card balance every month. If you do, you’ll avoid credit card interest fees. If your credit card has an annual fee, you may also want to switch to a no annual fee credit card. Every extra dollar you pay adds up and impacts your wallet.
Healthy Financial Management Is Key, Now and in the Future
Learning to deal with debt, money, and unexpected financial roadblocks isn’t difficult. Some small, simple steps—saving $5 a week, cutting a small expense or two—could make a noticeable difference. Don’t be afraid to ask for help.
Committing to financial changes can enable you to experience a new financial normal.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during September 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
FICO scores and enrolled debt
Curious about the credit scores of those in debt relief? In September 2025, the average FICO score for people enrolling in a debt settlement program was 599, with an average enrolled debt of $26,046. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 597 and an enrolled debt of $28,324. The 18-25 age group had an average FICO score of 567 and an enrolled debt of $15,354. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In September 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Natasha Etzel
Natasha is a contributing writer for Freedom Debt Relief. She is a veteran professional financial writer. She provides realistic strategies to help readers improve their knowledge and change their financial situations.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How can I save an emergency fund when money is tight?
If you have limited money and want to create an emergency fund, look for ways to reduce your spending by cutting unnecessary purchases and negotiating your bills. Increase your income by getting a side hustle or apply for a better-paying job. A bit of extra income could make it easier to save for emergencies.
How do I rebuild myself financially?
You can take some positive steps to rebuild your finances. It can take time to rebuild your finances, but it's possible. Try some of these strategies:
Pay off debt
Build an emergency fund
Trim your spending
How can I save money and get rid of debt?
To save money and get rid of debt, create and follow a budget, lower expenses, and explore debt repayment strategies. These methods can help:
Focus on paying off high-interest debts first
Consider a debt consolidation loan
Explore debt settlement plans
Start an emergency fund to avoid new debt