How To Keep Your Financial Resolution

As 2016 comes to a close many of us are looking towards the upcoming new year as an opportunity to define new goals and start changing our lives for the better.

According to GOBankingRates.com more than half of Americans who make New Year’s resolutions are focusing on their finances. However, we also know that less than 10% of people who set a resolution are able to keep it.

If you’ve resolved to improve your finances this year here are a few tips to help you along the way.

1. Start Small

It might be tempting to try and complete a full financial overhaul but few of us have the self-discipline to successfully change all of our habits in a short period of time. You’ll likely have much more success if you start small. Determine which part of your finances you’re trying to improve first and then brainstorm several small ways to make that change.

For example, if you’re trying to reduce the amount of money you spend eating out each month then take an honest look at how often you’re eating out, how much you’re spending and determine ways to reduce that number. Try bringing lunch to work a few days a week instead of vowing to bring lunch to work every day, or spend a week shopping in your own pantry eating some of those things that you just never got around to cooking. Starting with small changes can put you on a path to success that will make it easier to keep your new money habits.

2. Be Specific

The GOBankingRates.com survey asked respondents to choose from a list of possible resolutions which included ‘Spend Less, Save More’. This may be a great goal in theory but it’s incredibly broad and leaves a lot of room for interpretation.

If your resolution is specific it’s easier to track and measure. Instead of vowing to ‘spend less’ try ‘I will reduce my monthly food expenditures by $100’ and instead of ‘save more’ try ‘I will increasing the automatic transfers to my savings account by $50’. This type of specificity will make it easier for you to monitor whether or not you’re on track to hitting your goal.

3. Celebrate Success

It’s easy for financial resolutions to feel negative, or like you’re punishing yourself. And this makes them even more difficult to keep. One way to keep yourself on track is to include a reward for achieving your goal. This added motivation can help you stay focused when things get tough.

However, as you’re planning your celebration for sticking to your resolution make sure you don’t negate your achievement. If your goal was to pay off or pay down your credit card don’t celebrate by adding a new charge to it.

Ultimately, there are a lot of tips and options to help you keep your resolution and improve your finances and the best one is always going to be the one that works for you.

Happy New Year.

Daysha Carter is a personal financial coach based in Seattle, WA. If you’re struggling with your finances and want assistance getting to the next level schedule a free consultation at www.everydaybudgeting.com.