Creating a Financial New Year's Resolution That Sticks

Times Square is already shining the light bulbs for the famous ball drop, and that can only mean one thing: It’s time to start developing a New Year’s resolution. In January 2017, 42 percent of Americans made a money-related resolution, and perhaps you were among them. 4

Did you find it difficult to stick to your money-saving plan? The key to a successful resolution is to create a realistic goal, generate a way to keep track of it and not give up if you backslide at some point. With careful planning and determination, at this time next year, you’ll be celebrating resolution met.

Don’t Get in Over Your Head

The surest way to set yourself up to fail is by creating a financial goal that is way out of reach. If you strive to pay off your entire student debt, for instance, you may be bound to fall short. This leads to frustration and makes it more likely that you’ll give up by summer. Instead, choose a single, measurable goal within reach. Rather than trying to pay off a mountain of student debt, create a resolution to pay off one or two of the smallest loans. As CNBC points out, goals should be SMART: specific, measurable, achievable, realistic and time-bound. 1

Develop Plans to Make It Stick

A resolution is only as good as your specific tactics to keep it. Whether you aim to pay off your credit card or have $5,000 in savings by the end of the year, utilizing savvy strategies makes it easier to stick to your goal. Some expert tips include:

Automate everything. Put your goals on an automated schedule to streamline the process and reduce the chance of failure. If your bank transfers $100 into your savings account every month, you can’t forget to initiate the transaction. 2

Create a visual display of success. Small reminders of your progress can be incredibly powerful. On a whiteboard or printed calendar, write down visual milestones or reminders and mark them with a star or other indicator once they’re achieved.

Tap into technology. As the saying goes, “There’s an app for that.” And when it comes to financial goals, there always is. From tracking your savings to creating a customized budget, apps and online software can be a tremendous help. You may even be able to get a personal budget tracker for a small fee. 3

Celebrate the Fruits of Your Labor

Setting a reward to celebrate the Fruits of Your Labor may motivate you to stick to your resolution. Choose a few milestones along the way and an associated reward. If your goal is to put $2,000 into savings this year, treat yourself to a manicure after every $500. Maybe you want to pay off your car loan six months early; allow yourself a night at your favorite local hotel once you’ve made three extra payments. Small rewards help you feel good about your resolution and may be the extra kick in the pants you need to stay on track.