Financial Resolution
Every. Single. January – the gym swells with people excited to kick off their New Year’s resolution to get in shape. And, Every. Single. Year – around February, the regulars who have consistently made exercise part of their lifestyle, have the gym back to themselves.
Getting fit ranks as one of the top New Year’s resolutions each year. Depending on the survey, getting financially fit usually ranks at number two or three. We can point to a number of reasons why most of us will not keep our New Year’s resolutions, even with the best of intentions. Driven wants to help you stay out of that statistic.
Here is a key first step that will help you stay on track and put more money in your pockets in 2019.
Setting your resolution:
Why do about 90% of us fail to keep our resolutions? The resolutions we set always sound nice, but how many of us actually consider our starting point or baseline to determine if our goals are even realistic? Even before thinking about your financial goals for 2019, take a snapshot of your current financial situation. The simplest way to do this is to calculate your net worth. This should take no more than 30 minutes, but will give you a great starting point for setting specific, attainable and valuable financial goals for the coming year.
This exercise of identifying your assets and liabilities to calculate net worth is going to be eye-opening for most. After a moment of clarity, let the inspiration kick in. Is your net worth lower than you anticipated? Is your net worth higher than anticipated? Where should you be based on your goals and what are the benchmarks? Use your net worth as a starting point to establish a realistic resolution for 2019 that ladders back to your financial goals. Having a smart strategy you can implement and realistically stick to will help you get to the next level in 2019.
Sticking to your resolution:
Nobody enjoys feeling deprived. Would you rather have ice cream and that extra cocktail after dinner, or deny yourself and be “financially responsible”? Between those choices, it’s easy to see why we give up our resolutions to “save more” within a few weeks.
Here’s a trick that you can implement immediately.
Instead of simply denying yourself that little something extra, and feeling deprived, simultaneously reward yourself to make the act of saving feel more tangible. For example, you’re out for a nice dinner with your significant other. You’d both like, but don’t need, that extra drink. Ordering the two additional cocktails would cost around $20. Now, instead of simply saying no thank you when the waiter asks if you want another round, take out your phone, open your mobile banking app, and immediately transfer the $20 you would have spent on the cocktails into your investment account.
You’ve just gone from depriving yourself, to investing in yourself. A simple trick that will make the emotional process of “saving more” positive, and ensure you keep your resolution through 2019 and beyond. The battle for control over our money is often won via the small emotional victories along the way.
Schedule a free intro meeting today to ensure your financial resolutions for 2019 are strategic and successful.
