NEW Year’s resolutions are a common way for people to set goals and make positive changes in their lives, however, when it comes to money resolutions, it can be difficult to achieve lasting change.
One reason that your money-related resolutions fail to stick is that they are often too broad or vague.
For example, a resolution to “save more money” or “pay off debt” doesn’t have enough detail and lacks specific action steps.
Without a clear plan and specific goals, it can be difficult to stay motivated and make progress.
Another important factor for your financial resolutions is to ensure that they align with your most important life goals and values.
Let’s say your resolution to save more money conflicts with your desire to spend more time with family or travel, then it is unlikely to be sustainable over time.
Instead of making ‘fuzzy’ resolutions, it’s most useful to be intentional with your money and make spending decisions that are aligned with what you want to achieve over the next 12 months.
By setting specific financial goals, such as saving $100 each fortnight, or paying off $1,000 in Christmas Credit Card debt before June 30, you’ll be more likely to hit the target.
In addition to setting specific financial goals, it’s important to focus on building financial confidence. This may involve learning about personal finance, seeking guidance from a financial adviser, or working with a financial coach.
Building financial confidence can help you feel more in control of your day-to-day position, while ensuring that the bills are paid on time and supporting smarter financial decisions.