The start of a new year may seem like a good time to make all those changes you have been putting off — whether that means a healthier diet, less screen time or better financial habits. But all too often, come February, those well-intentioned resolutions kicked off on New Year’s Day have fallen by the wayside. So how can you actually make them stick this time around? And is it even worth trying?
“Despite public perceptions that such resolutions are a waste of time, some findings suggest they can help people achieve their goals, at least for a while,” said The New York Times. One study published in The Journal of Clinical Psychology found that “almost half the people who made a New Year’s resolution reported being successful after six months, compared with 4% of people who acknowledged a behavior they wanted to change but had not made a resolution,” said the outlet.
It may be that resolutions themselves are not the problem, but rather how we tend to approach them. While some grit may be necessary, “because of human nature, simply relying on self-discipline to stick to your money resolution isn’t wise,” said Jeff Kreisler, a managing director and the head of behavioral science for J.P. Morgan Private Bank, to the Times. Here’s what to do to achieve your financial resolutions instead.
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1. Make your goals specific and concrete
While it may feel tempting to tackle all of your financial pain points at once, often goals work better when they are specific and concrete. “Instead of your goal being ‘to be financially comfortable,'” you might try to drill down to more tangible action steps, like “to have no debt except your mortgage and a certain amount in your retirement fund,” said SoFi.
It is also helpful to keep your aims both “achievable” and “realistic,” said the outlet — otherwise it is all too easy to get discouraged and throw in the towel. As you set your goals, “think about your lifestyle, income potential, cost of living and other key factors, and set reasonable goals.” Finally, “make sure to account for the constraints of reality, such as inflation or continued living expenses,” said SoFi.
2. Consider an accountability partner
While financial resolutions may seem like they would be a solo endeavor, you do not have to go it alone. You may even stand a better chance at succeeding if you team up.
For example, you can pick a pal to hold you accountable. Put a “regular ‘money date’ with your friend on the calendar so you can ask each other how you’re doing, brainstorm any challenges or even budget together side-by-side,” said NerdWallet, citing Sylvie Scowcroft, a certified financial planner and the founder of The Financial Grove.
3. Use technology to your advantage
Goals would feel easier to stick to if they were not such a slog to stay on top of — which is where technology comes in. You can “leverage financial tools and apps to track expenses, monitor savings progress and stay on top of financial goals,” said AARP.
Assigning certain tasks to technology can also come in handy. For instance, “if your goal is to save more money, then setting up an automatic transfer each month can help turn that goal into reality, as long as you know you have the money in your checking account to spare,” said NerdWallet.
On the flip side, it is also important to keep an eye on if — and how — technology is impeding your progress. If “online shopping is your downfall, delete and unsubscribe to promotional emails and texts alerting you to deals,” said the Times.
4. Track — and celebrate — your progress
“Measuring your progress as the year unfolds is also a critical component of successful goal setting,” said NerdWallet, citing Cathleen Tobin, a CFP and the owner of Moonbridge Financial Design.
As you are tracking, it is important to shake expectations of perfection — “so you are not tempted to give up the first time you fall short,” said the Times. Even if “your resolution was to save $500 and you saved just $150,” Kreisler said to the Times, “‘it’s better than zero.'”
