Between sipping champagne, and singing Auld Lang Syne this New Year, chances are, you made some New Year’s financial resolutions. Under the burst of fireworks and in the spirit of celebration, it’s easy to create bright and sparkly resolutions for the year; however, according to research, 80 percent of New Year’s resolutions won’t stand the test of time.
To give you a better chance of keeping your New Year’s financial resolutions, we’ve put together some tips.
- Keep goals small and realistic
It’s easy to become disillusioned when you don’t achieve what you set out to do. One way around this is to start with small goals and be realistic about what you can achieve.
Everyone’s financial goals will be different, so try not to be influenced by others. The goal has to be meaningful to you and within your capabilities. For example, there’s no point promising yourself to buy your first home this year if you don’t already have any money saved.
Small financial goals might include:
- depositing $50 each week into an interest-bearing savings account
- paying off your credit card every month
- cancelling subscriptions you no longer use
- meeting with your tax accountant before the end of the financial year
- keeping receipts and invoices in a dedicated folder
- committing to a ‘no spend’ day at least once a month
- making lunches at home, to save money on eating out
- setting aside time to chat with your Smartline Adviser about where your finances are currently at and where to go to from here.
- Develop self-trust
Effective goal setting takes self-belief. If you believe that you can achieve your goals, you’re more likely to do so and keep those New Year’s financial resolutions. That’s why it’s good to start out small. By doing so, you’re building up ‘achievement stamina’ and showing yourself that you can achieve your goals.
Use the New Year to reflect on resolutions you have kept in the past. Be honest with yourself and be sure to identify even the smallest of successes. Soon, you’ll start building a picture of yourself as someone who can keep their resolutions
- Know thyself
Identifying your strengths and weaknesses before making your resolutions will help you to be more realistic about what is achievable for you. Write a list of your weaknesses. These will probably be a combination of personality traits and external factors. For instance, if you know you tend to go on a shopping spree every payday, you could consider automatically transferring a set amount to your savings account the day your pay comes in. If you know you aren’t great at sticking to a budget, look at using a budget planner to help you.
- Get support
Your friends and family can help you make realistic financial resolutions and help you to keep them. By telling your loved ones your financial goals for 2019, you stay accountable. It’s also worth getting support from the professionals. The start of a new year is a great time to check in with your tax accountant and also your Smartline Adviser to review your finances and clarify your goals.