Planning to Make New Year’s Resolutions Stick

A framework to help you be among the 8% that sticks to resolutions.

Will you make a New Year’s resolution this year? One of the smartest ones could be to get your finances in order, but keeping that promise to yourself is another matter.

A lot of people make money resolutions. According to study after study, the most popular resolution every year is to lose weight, followed by getting organized and saving more money. It’s good to see that a financial-related resolution is in the top three.

Here is a framework for making that New Year’s resolution stick.

Past Performance is No Guarantee

No matter your past investing history, there is always more we can do to better the financial picture for ourselves and our families. The key is to make a plan. Sadly, some don’t bother making a New Year’s resolution because it seems futile and few of us are able to keep to what we resolve each year. Did you know that while the majority of us make resolutions every year, less than 8% actually keep them?

This doesn’t have to be the case. There is every reason to make next year your year to accomplish what you set out to do.

Involve Family and Friends

Get your family involved to help you follow through. You can also share your resolution with others, and have someone keep you accountable. If you decide that you want to set a budget and save a specific amount each month, see if a friend wants to do the same. At the end of each month, check in with one another to make sure you are both on track.

Create A Budget

The centerpiece of a financial resolution is to create a budget for the entire year. This isn’t as daunting as it sounds. Decide with your partner and family members what the big expenses are for next year. Will you need to buy a new car? Take a vacation? Fix the roof or replace the air conditioner? By planning ahead and setting aside money in advance, these expenses don’t hit your bank account as hard as they would if there were no plan. A family budget is a great learning opportunity for kids, as well.

Start Fresh

Don’t allow any mistakes you made in the last year to affect your goals for the upcoming year, allow yourself to mentally wipe the slate clean. Use previous stumbling blocks as your new goals for next year.

Perhaps you had trouble with credit card debt, stress at work, or gained a few extra pounds. Involve those challenges in your New Year’s plan. Set up a timeline for paying off debt, schedule time to de-stress and get away from the office, meet with a personal trainer, or create a fitness plan that will work best for you.

Don’t forget to write down what you want to achieve and place it somewhere you see it each day. If nothing reminds you of your goals, then it becomes much more challenging to attain them.

Finally, talk to your financial professional to make sure your resolutions are consistent with your long-term financial plan. And your financial professional can be a great accountability partner too. Meet with someone on our team today!

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

This article was prepared by AdviceIQ.

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