It’s a tale of old as time, as the new year rolls around, we head to the gym, library, or crack open the spreadsheets, hoping to finally achieve a goal or transform our lives for the better, only to quickly abandon them come February. Unfortunately, out of all the different resolutions people set, financial goals are one of the most common and hardest to stick to as the holiday season winds down and the hustle and bustle of everyday life returns at full force. To be sure you successfully stick to this year’s financial resolutions, read up on some of our tried-and-true tips.
The best way to stick to your financial resolution is to set the one you know you can keep. Any habit, especially a financial one, can be hard to break. Take an honest look at your finances and assess what small and impactful goals can be reached within the following year. For example, if you still carry large amounts of debt, setting the goal of purchasing your dream car can not only prove difficult to achieve, but can cause lack of motivation and harm towards other financial aspects of your life. To see what goals would be most beneficial to work towards, consider meeting with a financial advisor at the start of the year who can help point out which areas need the most work and what short and long-term goals should be prioritized over others.
Any resolution is easier to stick to when you have someone encouraging and checking in with you, or better yet, someone who is working towards the same goal! New year’s resolutions, especially financial ones, can be private matters you wish to keep to yourself. However, there are many benefits to sharing your goals with people who will not only keep you accountable for sticking to them but make them feel more real. For example, perhaps you and your partner have set the goal of paying off a mortgage by the end of the year; setting expectations, establishing budgets, and reviewing finances as a pair can ensure that both of you are equally committed and thus more likely to succeed.
As mentioned, sticking to resolutions and reaching your goals require proper habits. However, even the smallest of lifestyle changes can not only add up to significant savings but can transform your money mindset to lead to long-term success. For example, forming the habit of eating whenever possible can save you thousands of dollars a year on restaurants and take-out, while sticking to set shopping lists can keep you from making impulse purchases that set you back on your goals.
Check out our previous blog post on 3 Ways to Stick to Your Holiday Budget. In addition, if you need personalized financial advice, our team is always here to help—contact us today to book an appointment!