Yes!
Money resolutions can be very hard to keep.
Like me, you may have started off the New Year pledging to do better than last year… in your lifestyle choices, in your finances, and in your relationships.
My goal each year is to be better in all 5 “Allys,” as I call them: Mentally, Physically, Financially, Emotionally and Spiritually.
But according to surveys, one-third of Americans drop their resolutions by the end of January.
The reason may be because most of our new year’s resolutions are about accomplishing something big, and these big ideas and big goals generally fail or get forgotten very soon after January.
To prevent that from happening, here are some ways to reframe a few common money resolutions.
SPEND LESS
Why it’s Hard: People tend to cut as many discretionary expenses as possible when they are looking to trim their costs and this is not sustainable.
How to Succeed: Start small by finding one or two easy behaviors to change until you make a new habit, then move on from there. Here’s an example, if you typically dine out four times a week, try cutting it back to twice per week and put the amount you save toward your goal. The idea here is to cut your spending little by little so that expenses that once were a regular part of your spending will feel less necessary and, over time, get eliminated.
SAVE MORE
Why it’s Hard: Saving more and spending less typically goes hand in hand…. when you spend less, you will have more to save. But you need to have a clear savings goal in mind. If you’re not sure why you’re saving, it will be very difficult to stay on track.
How to Succeed: Focus on a specific goal or tie it to another resolution. Here’s an example… if you have plans to travel more next year, then start a travel savings account and label it something aspirational, like “My London-Paris Trip” or “The Bora Bora Fund.” Make it fun to see the account balance grow. Soon, this simple action will become a daily habit.
STICK TO A BUDGET
Why It’s Hard: It can feel daunting to sit down and look at where your money goes. This can be doubly difficult if you aren’t already in the habit of checking your bank accounts.
How to Succeed: A good rule of thumb is to divide your spending into three basic categories:
- Fixed costs are nonnegotiable expenses like your rent, cell phone bill and minimum debt payments that you have to pay
- Committed expenses are what you put toward your personal financial goals (stuff like debt pay down, retirement or your emergency fund)
- Discretionary spending is what you spend on whatever you want
Then schedule a regular time to sit down and figure out where your money is going. Make adjustments as necessary. These regular money dates will help keep you accountable, build budgeting skill and create an awesome habit.
PAY OFF DEBT
Why it’s Hard: When you’re dealing with debt, it’s easy to feel like you should be shrinking it ASAP. But that’s not reasonable. This will only chip away at your determination instead of helping you chip away at your balances.
How to Succeed: Break down how much you want to put toward debt each month to help you reach your debt pay down goal. Say, for instance, you want to pay down your student loan debt by $5,000 this year, how much more would you need to put toward your monthly payment to make that happen?
With just a little tweaking and some actionable steps, you’ll be able to make your resolutions a reality.
And don’t forget to treat yourself for each accomplishment.
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Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
Helping God’s people realize and achieve their true financial potential, become debt-free, build wealth and give generously!!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
