Making better resolutions this year is possible

SMART Resolutions PDF

If you find it hard to keep your New Year’s financial resolutions, you may need to reconsider how you set your goals. Most resolutions lose momentum by the end of January. We all need to be SMART about setting financial goals.

Why are financial resolutions often abandoned before March? 

• Insufficient effort in goal setting—some individuals fail to assess their circumstances fully and simply state a desire for improvement in the coming year.
• Goals are unrealistic—such as aspiring to become a millionaire by year's end through social media influence without having established any following.
• Absence of ongoing measurement—goals like reducing credit card debt are set vaguely, lacking specific amounts or defined timeframes.

How can you make effective financial resolutions?
SMART Goals

• S - Specific
• M - Measurable
• A - Achievable
• R - Realistic
• T - Time-bound

Are there some resolutions that are good to make every year?

• Change one bad habit – don’t pay any bills late for the entire year
• Start one good habit – always use 5 coupons or more when grocery shopping
• Increase your net worth – perhaps building an emergency fund of a set amount by the end of the year

What are some effective resolutions for individuals facing challenges with expenses and debt?

• Resolve to use a weekly budget for all discretionary spending
• Each month, review a service like your mobile plan or car insurance to seek better pricing
• A way to keep from building debt is to set a goal of not buying any discretionary items like furniture or going on vacation unless you have saved all the money for it