New Year's financial goals and resolutions are easy to make. Anyone can easily find books and sites offering ways to create and decide on your resolutions. But only a few of them say that's the easy part.
The toughest part of making financial resolutions is sticking and following through with them throughout the year. Only close to 40% of people who make New Year's resolutions manage to remain on track to achieve their goals by June.
If you want to succeed, you must be ready to face the challenges that make it nearly impossible to achieve financial goals. And luckily, we're expounding why it's hard for people to keep New Year's resolutions, and how to change this trend for the better. Ready to learn? Read on.
Know That Financial Goals Can Be Difficult
Many people make resolutions at the beginning of the year because it's a natural time to do so. But if you want to increase your chances of succeeding, look beyond the timing. Think about why and what actions you need to take to make this year better.
For example, instead of saying you will make a budget for the New Year think about what that budget will do for you. Maybe it will help you see more opportunities to save or give you the peace of mind that you can foot your bills every month.
Once you think about how you will benefit from your goals, you can easily find ways to achieve them.
Start With Fun, Easy Steps
It's not uncommon to see people start the year with a grand plan to better their financial lives. And it's a great thing to do. Many plan to have an estate plan, save more, buy a house, pay for long-term care, and improve their medical insurance policy to suit them.
Although these are all great ideas, they need a lot of work. To achieve them, you need a lot of people and it can be overwhelming.
It may be better to break all your goals into individual goals. Afterward, start tackling them individually. After all, you have the whole year to finish them.
For example, if you want to cut your spending, aim to cut your costs by 10% in January. After that, assess yourself and adjust your goals to make them more realistic for the next month.
Most successful people say they started with something fun and easy. You can do the same. Just be sure to have items on your to-do list even if they may seem less fun.
Change Your "All Or Nothing" Mentality
When you start working on your goals, the pressure to succeed may kick in right away. You may find yourself striving for perfection in every action you take, and that can be a challenge because of the notion that we have to do it perfectly, or we're a failure.
Rather than trying to perfectly hit your financial goals, focus on the general path you're taking. For example, if you manage to reduce your spending by 15% in January and miss that mark by 5% in February, don't beat yourself.
Though it may feel like you failed, you're succeeding. Keep in mind that your path to success will not always be a straight line.
After a strange and overwhelming 2020, you're most likely looking forward to a fresh start this year. As you focus on your financial goals, we hope these tips help you stick with them throughout the year. Good luck!