Got Money Goals for the New Year? Stay on Track With These Tips

As we step into a new year and leave the holiday festivities behind, it’s the perfect opportunity to set financial goals, especially if you’ve recently splurged on gifts and travel and want to get your finances back on track. You’re not alone in this endeavor – a January 2024 survey by the Pew Research Center revealed that 61% of Americans who made New Year’s resolutions had money-related goals.

While you may be eager to tackle all your financial challenges in the coming months, the reality of daily life can often derail your plans. Your once-promising financial to-do list might end up forgotten in a drawer as more urgent matters take precedence. Unfortunately, the majority of New Year’s resolutions remain unfulfilled.

So, how can you increase your chances of success? It boils down to accepting that you won’t have the time or energy to achieve every task flawlessly. Establishing a system that allows you to prioritize, plan ahead, and hold yourself accountable can make a significant difference.

While many people focus on cutting unnecessary expenses as a financial goal, there are other ways to make a significant impact. Taylor Schult, a certified financial planner and founder of Define Financial in San Diego, suggests starting with overlooked financial tasks.

One quick and easy action is to freeze your credit, which provides protection against identity theft. Additionally, looking into umbrella insurance can offer added coverage beyond your existing policies, safeguarding you from significant out-of-pocket expenses in case of a lawsuit.

Prioritizing basic estate planning, such as creating a will, is crucial. Delaying this task can lead to complications for your loved ones in the event of an unexpected event. “It’s often a pain point that gets pushed aside,” notes Schult.

While monitoring your spending is essential, don’t overlook measures to safeguard your finances, yourself, and your family.

Many financial goals stem from societal expectations. You might feel pressured to save for a home even if you’re content renting, or to sacrifice immediate desires for long-term retirement savings, leaving you feeling deprived. However, your money goals should reflect what truly matters to you. If they don’t, you’re likely to lose interest quickly.

“If you’re unsure of which goals to pursue, refer back to your values to guide your decisions,” advises Eric Roberge, a certified financial planner and founder of Beyond Your Hammock in Boston.

You can integrate goal-setting with proactive planning to anticipate upcoming expenses in the next six to 12 months, such as recurring bills, vacations, expected home or car repairs, and other costs. This approach enables you to allocate funds monthly towards planned expenses and long-term objectives.

It’s easy to forget your goals, so to stay on track, make sure to write them down. Whether it’s a handwritten list on the fridge or online calendar reminders, these prompts can help you stay focused.

For time-sensitive goals, establish deadlines. Consider creating multiple lists based on tasks to complete within the next week, month, or three months. As you make progress and check off items, update your lists accordingly.

Incorporate others into your journey. Regular household money meetings can be beneficial if you’re tackling financial tasks as a team. Alternatively, share your goals with a trusted friend or family member who can hold you accountable. Involving loved ones can provide the motivation needed to stay on course. “We’re more willing to disappoint ourselves than others,” Schulte emphasizes. “The fear of letting someone down can be a powerful motivator.”

When faced with decisions like choosing a high-yield savings account, credit card, or investment opportunities, it’s easy to get stuck in analysis paralysis. However, at some point, you need to make a good enough choice. Taking action promptly can have a more positive impact on your life than endlessly deliberating each option.