According to research, nearly half of us will make New Year’s resolutions this year, with “better financial decisions” ranking as one of the most popular. But of those making resolutions, less than 10% are actually successful.* We don’t love those odds, so what’s our advice? Don’t make a New Year’s resolution!
But before you kick your feet up and relax all next year, consider this:
New Year’s resolutions tend to be generic and vague (“get healthier”, “make better financial decisions”) and lack a specific way to measure progress. Below is a list abstract New Year’s resolutions we often see folks making versus a tangible, measurable goal you can set for yourself:
New Year’s Resolution vs. Actual Goal
Make Better Financial Decisions vs. "Create a financial plan with at least 3 specific financial goals to work towards"
Spend Less Money vs. "Develop a monthly budget and track actual spending to evaluate progress"
Save More Money vs. "Calculate annualized cash flow and determine additional funds that can be allocated towards savings each month
Create More Wealth vs. "Calculate your net worth and identify at least 3 decisions you can make that will increase your net worth over time
As financial planners, one of the many roles we play is that of “accountability partner”, helping our clients execute on the financial plans that we create together. If you’re someone that could use help setting financial goals and having someone help you follow-through on them (or even help figuring out what your financial goals should be!), send us a message (firstname.lastname@example.org) or give us a call (512-649-2383).
*According to Statistic Brain New Year's resolution data, 2017
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