The New Year offers an opportunity to start fresh. It is the perfect time to make positive changes to your habits – including financial habits. Since New Year’s resolutions are easier to make than to keep, here are four ways to help achieve your resolutions and make changes that are sustainable throughout the year.  

This year make one resolution that will help you achieve all your other goals: be realistic. Make sure your goals are achievable. Try shifting your focus to smaller, manageable changes and make plans that you can stick to. Choosing small, realistic modifications will be much easier to maintain. Acknowledge that slips may happen and use those occurrences as opportunities to re-examine your plan and make any necessary tweaks. 

Set a specific goal so you know exactly what you are working towards and create a well-defined plan so you know how to get there. Focus your attention on one area at a time. This also helps to make your goal measureable. Set an exact figure, percentage or dollar amount for your financial resolution so you can track your progress. Clearly defined and stated resolutions are much easier to keep.

Word resolutions in a way that emphasizes a benefit or states the positive action you will take.  Working towards something constructive is much more motivating than a negative demand. For example, instead of saying “I will not spend money on lunches” reframe the resolution to “I will eat healthy homemade lunches three times a week.” This goal is positive and measureable. From there you can decide to use the money you save towards one of your financial goals. 

Make changes gradually and give yourself a reasonable timeline to see progress. Existing habits are hard to break and new patterns need time to take hold. Making changes gradually will increase the likelihood you can stick with new behaviours and see success in the long run.

This year make an effective resolution you can achieve – one that is specific and realistic.