How to Stick to Your New Year’s Financial Resolution
Hopefully you have set your main financial goals for the New Year and are determined to fulfil this list without any hiccups. Each year so many people have high hopes and great ideas on what they would like to accomplish, only to see these ideas fizzle out weeks after the initial excitement.
Don’t be one of those who gives up on their list! There are several things you can do to keep to your plan and meet your goals. Here are some tips on how to stick to your New Year’s financial resolution with ease.
Set the Right Goals (achievable wants)
The most important point to remember when setting your financial resolution is to make sure it is specific and obtainable. For example, do not simply make a goal that you want to buy $20,000 worth of shares. First of all, this may be virtually impossible to accomplish within a one year time frame. In addition, this is fairly broad. Instead, be a bit more specific about how you will get $20k and what industries/stocks you want to invest in. This will make it easier for you to track your success and meet your goals.
Possibly look at buying $5000 worth of stock every 3 months starting with the companies that are more of a priority for you.
Break Goals Down (realistic timetable)
If you have set some large goals, as mentioned above its a good idea to break them down into smaller, more attainable goals. For example, if you set a goal of getting rid of all of your credit cards, it would be better to break these goals down and pay of one credit card at a time. Not only does this make the goal easier to achieve, but it allows you to see success early on. This can motivate you to continue on with your next goals, and may help you achieve your overall New Year’s resolution.
No Major Changes to Lifestyle (a big key to success)
It is likely that you will need to make some substantial changes to your lifestyle in order to achieve your financial goals. However, it is vital that you do not make too many dramatic changes to your lifestyle, unless absolutely necessary. If the changes you plan to implement are too dramatic, you may not stick to them throughout the entire year. Instead, cut back slowly over time, so there are no major changes made instantly to your current lifestyle.
Track Success (review your list monthly)
You must find a way to track your success as the year goes along. It is vital that you develop a plan early on for tracking all of your expenditures. This is the only way you will be able to track your overall success or determine why you are not meeting your goals. You should also set specific dates throughout the year to evaluate your goals and see if they need adjusted, or if new goals need to be made.
Prepare for Problems
Just because you set financial goals for the New Year does not mean that emergency will not occur that need immediate attention. Do not get discouraged if this happens, instead just evaluation your goals and make any necessary changes. With careful planning and determination, you may still be able to accomplish you goals this year.
Deciding to make a New Year’s financial resolution is a big step that can start you on your path to financial freedom. Do not worry if you fall behind or fail to meet some of your goals. Just pick up where you left off and start over again. Gaining financial freedom is not a race, but it requires you to change some of your spending habits, and rethink how you borrow money. Over time, you will be able to successfully meet all of your financial goals. Review our Money Management and Daily Finances sections to help you along your way.
