The new year is just around the corner, and a brand-new year is the perfect time to start fresh, create new goals, recommit to any existing goals, and dream big about the year ahead. In 2023, 35% of Americans chose to do just that. And out of those who chose to create New Year’s resolutions, 16% had given up before February.1 Abandoning New Year’s resolutions has become such a trend that the second Friday in January has been designated as “Quitters Day.”
You don’t have to be a part of the 16% next year. Let’s talk about some ways that you can make financial resolutions you can actually keep in 2024.
Making New Year’s Resolutions You Can Keep
Making your New Year’s Resolutions is one thing . . . but sticking with them is an entirely different beast. Why is that? Why do so many people struggle to stick to their goals? Are our resolutions too lofty? Do we need more support or accountability to stick to our goals? If you want to make (and stick to) your resolutions this year, you’ve got to look at the goals you’re setting and ask yourself a few simple questions:
1. Is the outcome of this goal something I truly want?
Many people set goals because they think it’s a good thing to do. The problem with doing that is they often forget to ask themselves if they actually care about the outcome. So, before you commit to a new goal, make sure it’s something you truly care about achieving this year.
2. Do I need outside support to stick with it?
Accountability and support are huge factors in reaching our goals. Without the accountability of a trainer or a coach, you may not reach your goal of winning that fitness competition. Without the support of a financial advisor, you may not reach your goal of retiring early. Getting the right people on your team will go a long way in helping you stick to your goals.
3. Are my goals achievable?
A huge part of goal setting is choosing the right goals that are attainable for you within the next year. If you want to be a millionaire by the end of the year, but you’re in debt and not currently working to build a solid financial foundation, that goal isn’t going to be attainable this year.
Create S.M.A.R.T. Financial Goals
There are a lot of goal-setting methods out there, but one of our favorites for creating your financial resolutions is founded on one simple acronym: S.M.A.R.T. Creating a S.M.A.R.T. goal means that your resolutions are: Specific, Measurable, Achievable, Relevant, and Timely.
S: Be specific. This means that you know exactly what you want and why you want it. Clearly stating your goal may feel uncomfortable at first, but it also provides clarity so you know exactly what you’re going after. The more details, the better!
M: Make it measurable. If your goal isn’t measurable, how can you define success? If you want to pay down debt this year, choose a specific amount that you want to pay off. For example, instead of saying “I want to pay off debt.” Instead, consider, “I want to pay off $10,000 of debt.”
A: Is it achievable? It’s important to stay away from creating a goal that you know you won’t be able to achieve throughout the year. For example, to say, “I want to win $1 million in the lottery,” would be setting yourself up for failure from the start. You have no way of knowing if that’s achievable.
R: Make it relevant to you. Is this a goal that really matters to you? Is it something you actually care about and want to spend your time, energy, and effort working toward?
T: Set a time. By what date would you like to achieve this goal? Is it by December 31 of next year? Is this a five-year goal? Be clear about the timeline . . . you can always adjust it as you go.
Creating your financial resolutions can sometimes feel daunting. But as they say, nothing worth doing is easy. If building a solid financial foundation is at the top of your list for 2024, we would love to support you. Speak with a SageSpring Financial Advisor today and get the accountability, guidance, and direction you need for your financial future in 2024.
