In recent years, only 9 to 12 percent of Americans succeeded at keeping their resolutions through the end of the year. The main reasons why people lose steam on New Year’s resolutions is that they set unrealistic goals, too many resolutions, don’t measure their progress, or simply forget (Or a combination of all four.). But there’s a reason why people create new resolutions time and time again. The new year symbolizes a fresh start and can be a great time to set new goals and shift our behavior.
So, how do you set a New Year’s resolution you can maintain through the year? With SMARTer goals. SMART is an acronym that stands for:
- Specific
- Measurable
- Attainable
- Relevant
- Time-bound
By setting goals that satisfy these conditions, we are much more likely to achieve them.
Be Specific
When it comes to your money and your financial situation, set aside some time to reflect on what you really want to accomplish – and be specific.
Ask yourself three “W” questions:
- What do you want to accomplish?
- When will you achieve it?
- Why does it matter to you?
Make a Road Map
Set a goal (and write it down), goal setting gives you direction. You can decide on your destination and make a plan to get there. This might seem small, but it’s not. Not only is goal setting linked to higher achievement and self-confidence but writing down your goal can also make you more likely to succeed.
Make (and work) the Plan
Money resolutions often go by the wayside if they serve as a goal without a plan. A plan outlines how you will accomplish your goal. The plan might define how much you will spend toward your goal, how often you’ll make deposits towards it, and the method you’ll use to accomplish it. For instance, automating monthly payments or savings goals is proven to help people stick with money resolutions.
Be positive and realistic
Goals can challenge you and help you grow into a new future. Choosing a goal that is attainable is another important part of success. Let’s say you’ve chosen a clear goal – with a positive outcome – such as: “In five years, I will be debt free. I will pay off my entire debt of $12,000 so that I can focus on enjoying my family instead of worrying about money.”
Be sure it’s a realistic goal based on your specific situation. Given your income, debts and expenses, is it realistic to spend $200 on your goal each month? Is it possible to pay it off even faster by spending $250 a month? Or does your budget allow for $100? Staying positive and being realistic shows you how much you can devote to sticking to and achieving your goal.
Keep and celebrate milestones
Break your goal into smaller milestones, by making your goal measurable it will help it stick. Keeping track of your progress on an app, spreadsheet, or a simple notebook, can help you stay focused and motivated. Celebrate your successes along the way. Doing so actually “trains your brain” by reinforcing your new habits, which makes it easier to stay on track if you hit a bump in the road at some point.
A New Year is a new opportunity for success and following these tips will help you to plan and achieve your financial goals. Check out our blog on Realistic Financial Resolutions for ideas.