Spend less. Save more. Get out of debt.
Financial resolutions are some of the most common promises we make to ourselves at New Year s. It s a great feeling to be in control of your finances and debt free with a healthy savings account. But having that stability takes more than a resolution to save more sealed with a champagne toast. Many resolutions don t make it past the first week of the new year.
Often, New Year s resolutions don t last because we never take the step of turning a resolution into a goal. A resolution is merely the moment of formal decision: I will spend less this year. There s no measurable way to determine your success and there is no plan to succeed.
A well-defined goal, however, is much easier to measure. If your resolution is to save more, then you might make a goal like this:
I will put five percent of each paycheck into my savings account.
Read that statement again: I will put five percent of each paycheck into my savings account.
Does it sound more powerful and doable than save more?
I bet it does.
Why? Because this goal is clear and concise. It tells you exactly what you re going to do and when you re going to do it. It s much easier to make a change when you know exactly how you re going to do it.
The key is to take the time to consider what you really want and then plan how you will make it happen. Be specific and realistic and you ll be on your way to keeping your resolution(s). Now that s worth a champagne toast.
Here are some more examples to inspire you in your quest:
Resolution: Spend less.
Possible goals:
I will bring my lunch to work instead of buying it at least three days per week.
Before I go to the mall, I will set a budget and stick to it.
Resolution: I will be debt free.
Possible goals:
I will pay $100 each month toward my credit card bill so that I can pay it off by December 31, 2012.
I will take some time before the end of January to assess my debts and create a realistic debt pay-back plan.
What are your New Year s Resolutions and how are you going to turn them into goals you can keep in 2012?
