Setting realistic financial goals is key to achieving success. However, knowing which goals to prioritize and how to reach them can be difficult. In fact, it's common knowledge that most Americans do not achieve their New Year's goals. The reason may be that we’re bad at setting reasonable expectations. Whether you decide on a money-related goal because of a life event, such as having a baby or buying a house, or just to improve your financial health, it’s important to consider your priorities and make sure your financial goals are specific and achievable.

We’ve outlined four realistic financial goals that can help improve your financial health, as well as strategies you can use to help achieve these goals. Not all of these goals may apply to you right now, but achieving even one is a great start.

Owing money on credit cards, mortgages, vehicles and student loans is a reality many Americans contend with. While trying to pay off all of your debt is a reasonable idea, it is also a difficult goal to reach. Simplify your goals by breaking them down: Look at your debt and decide on a percentage you’d like to shrink it by. Resolving to eliminate 5, 7 or 10 percent of your debt gives you a more realistic way to approach reducing what you owe.

In addition, be savvy about the way you pay down debt. Not all debt is created equal, so determine the right approach to achieve your goals. For example, you likely want to pay down high-interest debt first and focus on other debt later.

If you set a goal to save a big amount in a certain time period, there’s a chance you’ll fall short. Financial goals that are many months away can be harder to achieve, and if you have a month or two with unexpected expenses, you may have to pause your savings effort. That decision not to save might seem like a setback.

Instead, give yourself specific, smaller, short-term (or seasonal) goals. Maybe you want a new smartphone, would like to take a trip somewhere or have your eye on a holiday gift. Setting smaller, short-term goals can give you a psychological boost when you reach them. If a big-ticket item is the ultimate goal, consider setting certain benchmarks along the way so you can achieve this same effect while still taking longer to save.

Tip: Pay yourself first by setting up automatic transfers from your checking account to your savings account or having some of your paycheck directly deposited into savings.

A good budget is key to financial health, and Americans agree on that—in one 2023 poll, 85% of respondents reported doing some kind of budgeting. If an exhaustive budget feels overwhelming to create, you might choose to start with the simple step of tracking your spending so you have a better sense of where your money is going each month. Technology can help. Apps, along with mobile and online banking, offer solutions for tracking your spending and identifying areas where you can make cuts.

Many Americans are struggling to save for retirement. The average Gen X-er in 2023 had saved less than $130,000 an amount that will provide a relatively low standard of living in retirement, even with Social Security and other forms of income. One benchmark to consider is aiming to have 2 to 4 times your annual income saved by the time you’re 45. Start saving for retirement as soon as possible, so your money has more time to potentially grow. Think of it as investing in your future self.

Take a look at how you’re planning for retirement to see if you’re maximizing your resources. Can you contribute more to your 401(k) at work? Have you considered an IRA? Remember, retirement plans often offer tax advantages. Taking time to research what options are available, and taking advantage of the ones that make sense for you, can make a big difference in the future.