The Gift of Financial Forgiveness: 8 Ways to Let Go of Money Regrets and Start Fresh in 2025

We all make money choices we wish we could take back. Maybe it was splurging on a credit card, investing without enough research, or a simple budgeting slip-up. For me, it was not getting a prenup for my first marriage- and having half of my net worth wiped out by a costly settlement agreement.

Whatever the financial misstep, holding on to that guilt can weigh down your journey toward a bright financial future. I know this, because after this event, I took a big hit to my self confidence. Would I make more money mistakes? Was I doomed. The feeling was paralyzing. 

The truth: EVERYONE has made a financial mistake. Even super rich and successful people. No one is immune from this. But many of us (myself included) hold onto this for far too long.

Forgiving yourself can be the reset button that allows you to move forward without the weight of past regrets. Studies have even shown that self-forgiveness is essential for building resilience. Let’s dive into eight practical ways to give yourself that gift of financial forgiveness and enter 2025 with a clean slate and a resilient mindset.

1. Share Your Regrets

It’s amazing what a difference it makes to simply say your mistakes out loud. When we let our regrets sit quietly in the back of our minds, they often grow out of proportion. But when we shine some light on them—whether through journaling, talking to a trusted friend, or even saying them to ourselves in the mirror—they often shrink to a much more manageable size.

Also, science has our backs here: talking through our problems has been shown to help us release negative emotions and move on more easily.

2. Reconsider Your Expectations

Think back on why you feel so disappointed about a past financial choice. Ask yourself: What did I expect to happen? Did I give it my best shot with the tools I had at the time? Chances are, you were doing the best you could with the information and resources you had. Or, maybe you didn’t—and that’s okay too. What matters is that you learned something valuable from the experience, and now you’re better prepared for the next time.

3. Use Verbs & Adjectives, Not Nouns

It’s easy to label ourselves after a mistake, but words like “bad with money” or “failure” are heavy labels to carry. Remember, you might have spent your tax return instead of saving it, or you may have skipped a budget check-in, but that doesn’t make you “irresponsible” or “a spender.” Let those labels go, and remind yourself that these past mistakes do not define who you are—they are simply experiences to learn from.

4. Remove Yourself from the Situation

Pretend for a moment that a friend, sibling, or even a colleague made the same financial misstep. How would you respond to them? You’d probably be compassionate, supportive, and would offer words of encouragement rather than judgment. Take that same caring approach with yourself. Treat yourself as kindly as you would anyone you care about!

5. “Redo” it, with What You Know Now

This exercise might sound simple, but it’s incredibly helpful: knowing what you know now, how would you have handled that situation differently? Imagine you could go back and make an alternative choice. By writing this down, you’ll see how far you’ve come and identify all the tools, information, and confidence you now possess that you didn’t have back then.

6. Look for Opposite Evidence

Many of us are quick to say things like, “I’m always bad with money” or “I just don’t know enough.” But let’s flip the script and ask: Can you think of times when you made a good financial decision? Maybe it was setting up that automatic savings transfer, choosing a lower-interest loan, or even passing on an impulse buy. These wins may not feel like much, but they’re evidence that you *can* make smart choices!

7. Resolve Any Loose Ends

Unfinished financial matters can be a mental and emotional burden. If there’s an outstanding issue that’s keeping you up at night—an overdue bill, an unaddressed debt, or an account you meant to close—take a small step toward resolving it. Clearing these lingering to-dos will help ease your mind and free you up to focus on what’s next.

8. Write a Letter

Sometimes, expressing yourself in a letter can be the most powerful step in forgiving yourself. Write to yourself, or even to someone you need to forgive, and express your thoughts and feelings honestly. After you’ve poured it all out, let the letter go. Burn it, shred it, recycle it—release the weight of past mistakes with it, and make space for a fresh start.

Letting go of past financial regrets isn’t always easy, but it’s one of the best gifts you can give yourself. As you step into 2025, allow these tips to guide you in forgiving past missteps and focusing on your financial growth. You’ll find that, with a little self-compassion, the path toward your financial goals feels a lot lighter!