A Proven Solution for Keeping Financial Resolutions
Hopefully, everyone takes a good look at their finances each new year and tries to make some improvements to their bottom line. But no matter what resolutions you choose to make this year, this solution can help you be successful.
It’s nearing the end of the year and resolutions are popping up like discarded needles from the Christmas tree.
Here is an easy guide to avoid getting stuck in the new year.
Pick Just One Major Goal
Trying to fix too many things simultaneously splits your focus and weakens your resolve. What is most important to you? For example: Get out of debt.
Identify and Quantify Your Resolution
Set a concrete goal, not just a vague desire. “I want to pay off all of my credit card debt.” Establish exactly where you stand financially. You can’t fix something unless you know how bad it is.
Stop the Madness
Credit cards can become a trap because they allow you to spend more money than you make. End the cycle by avoiding new charges on your cards. It boils down to this: Make more money than you spend.
Do More Than the Minimum
There are several proven methods to do this, like the “snowball method,” where you pay the highest interest amount first, then the next highest, and so on, until the debt is gone. An excellent resource for putting together a debt payoff plan is our ebook, How to Conquer Debt No Matter How Much You Have.
Stick to It
The hardest part of most resolutions is sticking to it long enough to see results. Most goals fail because of a plan that is too strict. Set realistic goals that are reachable. If your family is used to eating out four times a week, cutting it out entirely will only lead to resentment and, ultimately, failure. Start by eating more meals at home and choosing less expensive restaurants. Gradually reduce your spending in this area. Bonus: Eating more at home can bring families closer together.
Identify Triggers
What makes you overspend and reach for the credit cards? Is it those late-night commercials that entice you with miraculous products or a lazy afternoon shopping on your favorite website? Do the words “clearance,” “bargain” or “only one left” trigger a must-buy response? Avoid temptation whenever possible. Keep your resolution firmly in mind and just say no to overspending on unnecessary items.
Replace Your Spending Habits With New Habits
If you take something away, it is much easier to deal with if you replace it with something else. For example, if you limit your extra spending, find something free to do with your family. Go to the library! This used to be a staple of family entertainment, but with all of our technology at home, it is often forgotten. You can spend an afternoon browsing for books, playing or renting video games, watching movies, and even attending special events like buying discarded books by the bagful or joining reading groups for all ages.
Sign Up for Savings
Subscribe to get money-saving content by email that can help you stretch your dollars further.
Twice each week, you'll receive articles and tips that can help you free up and keep more of your hard-earned money, even on the tightest of budgets.
We respect your privacy. Unsubscribe at any time.
Anticipate Setbacks
Oh no! You messed up and bought a gorgeous dress that was marked down 80%, but you have no idea when or where you will ever wear it, and it is non-returnable! Instead of beating yourself up, reassess your resolution. Maybe a small allowance for “extras” could be worked into the budget. Don’t give up just because of one slip-up.
Enlist Help
Resolutions are easier when they are shared, especially if they are for the good of the family’s financial future. Get your spouse and family on board by telling them why you are spending less and cutting out a few luxuries.
Celebrate When You Reach a Goal
Give your motivation a boost when you pay off that first credit card or avoid a major purchase that you really didn’t need. Acknowledging your accomplishment makes you more ready to forge ahead.
Whether you call it a goal, a plan or a resolution, you can accomplish it. Let this be the year you triumph by using this proven solution for your financial resolution.
Reviewed December 2023
About the Author
Shaunna Privratsky became an expert in personal finance out of necessity. Between writing, reading and gardening, she is always on the lookout for bargains. Visit her at The Discount Diva.
