New Year, New Financial You: A Guide to Setting Resolutions

As you ring in the new year, it is natural to reflect on the past 12 months and feel the desire to set goals for the future. While resolutions often focus on personal growth and health, it's important not to overlook the state of your finances. Whether you want to pay off debt, improve your credit score, save for an upcoming concert, or your dream car, the start of a new year is the perfect time to make positive changes to your financial habits. Let’s discuss the importance of financial resolutions, the steps you should take to set them, how to stay motivated, and ways you can track your progress throughout the year to get yourself on the path to a successful 2024.  

Why Financial Resolutions are Important

Setting financial resolutions allows you to take control of your future. By identifying attainable and realistic goals, creating a plan to achieve them, and setting responsible habits, you can start making progress toward a more stable and secure financial life.

These resolutions also help you stay motivated and focused. They provide you with a sense of purpose and direction, giving you something to work towards. Without goals that feel realistic, it's easy to fall into bad financial habits or become complacent with your current situation. Setting resolutions will help you break free from these patterns.

Additionally, financial resolutions help you develop better money management skills. Whether it's learning to budget, save more effectively, or reduce debt, setting financial goals requires you to be more mindful of your spending habits on a daily basis and on a larger scale. Over time, these habits will become ingrained in your lifestyle and routine leading to long-term success. Let’s go through the steps you can take to make your vision a reality.

Practical Steps to Setting Your Financial Resolutions

Here are some recommended steps to help you effectively set your financial resolutions this year:

1. Set your goals: Take some time to think about what you want to achieve financially in the coming year. Whether it's paying off debt, saving for a down payment, financing a trip with your friends or starting an emergency fund, be very specific about your goals.
2. Assess your current situation: Look at your income, expenses, and debt. This will give you a clear picture of where you stand and help you identify areas that need improvement.
3. Break your goals down into actionable steps: Once you've identified your goals, break them down into smaller, more manageable steps. This will make them feel less overwhelming and easier to achieve.
4. Create a budget: Creating a budget allows you to track your income and expenses, identify areas where you can cut back, and allocate funds towards your goals. Budgeting can be hard especially when you have to cut back on luxuries like getting your nails done or booking tee times on the weekends. The sacrifices are worth it. And, just know, you aren't alone!
5. Seek professional advice if needed: If you're unsure about how to create a budget or achieve your financial goals, don't hesitate to seek help from a financial professional. They can provide valuable guidance and help you develop a plan tailored to your specific needs.

Okay, we’re halfway there! Now that you understand the importance of setting resolutions and you have followed the steps to setting them, let’s move on to some tips for staying motivated and sticking to the resolutions you have set.  

Tips to Keep Yourself Motivated and Stick to Your Resolutions

It's easy to lose motivation or fall back into old habits, but with the right strategies, you can stay on track and achieve your financial goals. Here are some tips to help you stick to your New Year's financial resolutions:

1. Find inspiration: Surround yourself with positive and inspiring stories or role models. Read books or articles about financial success, listen to podcasts, or join online communities of like-minded individuals. Seeing others achieve their goals will inspire you to keep pushing towards yours.
2. Visualize your success: Take some time each day to visualize yourself achieving your financial goals. Imagine how it will feel once you've paid off your debt, have enough cash for a down payment on a house or can send that “I’m in” text in the vacation planning group chat!  This visualization will keep you motivated and focused on the end result.
3. Set realistic goals: It's important to set goals that are achievable and realistic. If your goals are too lofty, you may become discouraged and give up. Start with small, attainable steps and build from there. No need to cut out all leisure activities on January 1st, just consider trimming the list!
4. Make your resolutions visible: Write down your resolutions and put them somewhere you'll see them every day like on the fridge, on your bathroom mirror, or right above your key hook. This constant reminder will help keep you focused and motivated.
5. Track your progress: Keep a record of your progress towards your goals. This could be a simple checklist or a more detailed tracking system. By seeing how far you’ve come you’ll have the motivation to not take that unneeded sneaky trip to the hair salon.
6. Review and adjust: Regularly review your financial goals and adjust them if needed. As circumstances change throughout the year, you may need to reassess and modify your resolutions and that's okay because that's life! This will ensure they remain relevant and achievable.
7. Celebrate milestones: When you reach a milestone or make significant progress towards your goals, celebrate! Treat yourself to something small or do something that brings you joy. This positive reinforcement will keep you motivated and excited to continue. Go ahead, get that latte!
8. Stay positive: It's important to maintain a positive mindset throughout your financial journey. Remind yourself of why you set these resolutions in the first place and the positive impact they will have on your life. Surround yourself with positivity and remember that setbacks are a normal part of any journey towards success. 

Checking In on Your Financial Resolutions Throughout the Year

Life can be unpredictable, and circumstances may change, so regularly evaluating your financial resolutions will help keep you on track and make necessary adjustments.

Schedule regular check-ins on a monthly or quarterly basis to assess how you're progressing towards your goals. Take the time to review your budget, track your spending, and see if you're staying within your financial plan. Be honest with yourself! Look for areas where you may have slipped up or areas where you've exceeded your expectations.

If you find that you're not making the progress you had hoped for, don't get discouraged. Use this as an opportunity to reassess your goals and make any necessary adjustments. Perhaps your original goals were too ambitious, or maybe you encountered unexpected expenses. Be flexible and willing to adapt your plan as needed. This will help you succeed in the long run. On the other hand, if you find that you're exceeding your goals, celebrate your success! Take pride in the progress you've made and consider setting new, more challenging goals for yourself. Keep pushing yourself to reach new heights and continue your path to financial success.

Plan, Stay Motivated, and Reap the Rewards in 2024 

You have taken the time to understand the importance of creating financial resolutions and sticking to them. Now, it is time to take action. Let’s start putting some money aside for your dream car or the vacation that you always said you would take. Make 2024 the year you turn into a personal finance superstar!

If you’re a more practical person and one of your 2024 financial resolutions is to grow your money utilizing a safe investment tool, you should check out our new Pick Your Term CD which gives you flexibility to choose your term so you can start saving more for your future today!