There's lots of research out there on why resolutions fail year after year. Financial resolutions are no different. Essentially, people just don’t go about it the right way; setting a huge goal like “I'm going to lose weight” is both unattainable (because you're not setting an action plan along with your resolution) and unspecific (how much weight?)
I'll use my own New Years’ resolution from 2017: I wanted to keep more cash on hand throughout the month. Why?
- Because I'm always that asshole stiffing valets and having to put tips on the card at the nail salon.
- I wanted to have money on hand to give to someone on the street who needs it.
- Because there's also science that you spend less when you use cash.
- And generally, it just feels good to have cash on hand and not have to stress about a card machine being broken or a merchant only taking cards.
Back in 2017, I majorly failed with this “resolution” because I didn't have an action plan in place: no schedule for when I'd go to the ATM or line item in my budget for how much I'd take out. I would say I only kept cash on hand about 10% more than I did in years prior.
Why I prefer financial resolutions that function like mini-goals.
Often it can feel that by simply playing the resolution game we're setting ourselves up for failure.
- We didn't take the time to set a proper goal.
- Or we lose stream.
- Or something life-changing and unexpected happens (hello baby) that completely turns all your initial goals and planning on its head.
It's frustrating. For this reason, I often don't set resolutions and instead set financial goals for the year. But I give myself a full 365 days to accomplish them. Some I contribute to each month, while others I tackle all at once.
So, if you resolve to “be better with your finances next year”, and I know we all do, take it one step further and make it specific, action-based financial resolution Below are (x number) of my favorite examples.
10 Specific Financial Resolutions You Can Definitely Do Next Year
Financial Resolution #1 – “I want to improve my credit score by (x) points next year”
Resources to help:
- How to build credit the fastest when you have low or no credit
- These tasks will clean up your credit in time to buy a home this Spring
- Credit Cards: Friend or Foe?
Financial Resolution #2 – “I want to pay off (x) amount of credit card debt by the end of 2020.”
Resources to help:
- A FREE Printable Debt Tracker
- My guide to how I paid off $8,000 in 90 Days
- A primer on debt consolidation: what it is, how it works, and how it can work for you.
Financial Resolution #3 – “I’d like to be more aggressive with my student loans and pay off (x) by the end of 2020.”
Resources to help:
- Investigate refinancing your student loan debt with CommonBond.
- How to Reduce Your Student Loans: 4 Hacks Servicers Won’t Tell You
- How to Pay Off Student Loans Fast: 5 Strategies to Try
Financial Resolution #4 – “I’d like to fully fund my 6-9 month emergency fund this year.”
Resources to help:
- How to save $1,000 in 45 Days
- What is a rainy day fund? Why do I need one?
- Start a f*ck off fund for that job you can't stand.
- Open a new separate savings account.
Financial Resolution #5 – “I’d like to save an additional ($x dollars) each month”
Resources to help:
- The 6-Step Guide to Setting a Budget (so you can figure out where that money is going to come from!)
- How to find money in your budget when you need it
- 82 Ways to Save More Money This Year
Financial Resolution #6 – “I’d like to become a homeowner/refinance my home by the end of 2020.”
Resources to help:
- How to Buy a Home: The 8 Step Guide
- Resolve to save up a down payment for a house in the next 12 months. (Here's the math-based guide on how to do it.)
- How to Set Your Home Buying Budget
Financial Resolution #7 – “I want to do one money-related task each month to make managing my money easier.”
Resources to help:
- Set up automatic bill pay and watch your life change.
- Create your own money diary and track your spending for the month of January.
- Try the envelope budgeting (cash only) method.
- Do a 30 day challenge, such as stopping eating out for 30 days and save the extra.
Financial Resolution #8 – “I want to lower my shopping budget each year from (x) to (x).”
Resources to help:
- Our guide to how much to spend on clothing each year + ways to shop on a budget and make your money go further.
- Try not shopping (for clothes, non-essentials etc.) for 30 days.
- How to complete a no-shopping challenge for a full calendar year.
Financial Resolution #9 – “I’d like to pay for my/my family’s summer vacation in cash.”
Resources to help:
- How to travel on 5% of your income each year
- Top Money Saving Apps
- Sell your stuff on Craigslist and use the extra to put toward vacation savings
Financial Resolution #10 – “I want to earn an extra $5,000-$20,000 in 2020.”
Resources to help:
- Think about ways to diversify your income and earn more
- Our guide to starting a side hustle
- How to start a money-making blog
- All the ways to earn extra even when you have a full-time job
The TL:DR
Here’s a quick glimpse of my Trello board where I keep my financial goals I set for last year.
(Surprise! There’s more of them as some are personal between me and my husband) but I did accomplish them all and I’m really proud of myself. First year I’ve ever done that!
I attribute this success to setting such specific goals, with amounts and timelines and everything. What I love about smaller, more action-based financial resolutions is that they're both very attainable, and even a small money shift now, in January, can have a big impact on your finances later, like in August or September.
So, figure out what you really want to accomplish and play with what you think is achievable.
Love this list of financial resolutions! Very comprehensive and actually attainable!
I really want to get my efund up to 20k.
I like this list first financial goals I already have for janury 2017 is to have sort f shoping ban and cash diet!!!