Forget Resolutions This New Year: Focus on Sustainable Habits Instead
🕐 Read Time 4 Minutes
Are you one of the 3 in 10 Americans who created a New Year’s resolution?
The start of a new year feels like the perfect time to tackle longstanding goals and make meaningful changes, especially when it comes to important things like our health, relationships, careers, or finances (new year, fresh start!). Many of us have well-intentioned New Year’s resolutions to accomplish these goals.
While New Year’s resolutions are filled with hope and promise, did you know that most are abandoned in the first few weeks?
Research has shown that around 80% of resolutions fail by February! Ditching resolutions is so common that the second Friday in January is known as “Quitter’s Day,” when most people give up on their resolutions.
Why do so many resolutions fail?
Goals, Not Resolutions: Stop Trying to Do Too Much
New Year’s resolutions are often overly ambitious and based on fleeting motivation rather than actionable strategies. This is especially true when it comes to financial goals (money or finances is the second most popular resolution), which can feel overwhelming without a clear plan.
Although this all sounds disheartening, you can find success in making meaningful changes and improving your financial health. Rather than focus on resolutions, commit to sustainable habits; habits that fit seamlessly into your daily life can help you make progress throughout the year and beyond, rather than just in January.
The New Year’s Resolution Trap
New Year’s resolutions can feel empowering at the moment, but they often set us up for disappointment because of their flawed approach. Resolutions are often created around unrealistic expectations and the pressure to succeed immediately. There’s an “all-or-nothing” mentality, where if you can’t stick to your resolution perfectly, you can end up feeling frustrated, guilty, and like you’ve failed completely.
Some might set a goal of saving 50% of their income overnight, or drastically reduce their discretionary spending, without considering the realities of their financial situation. With these kinds of overly ambitious resolutions, even the smallest of setbacks can feel like total failure (and lead to throwing in the towel altogether). There’s little room for flexibility or adaptability, which are important to making lasting changes.
Resolutions can also create a trap of focusing too much on the end goal rather than the process. Some of us might resolve to get out of debt or save for retirement, without breaking these goals into manageable steps. Without a clear roadmap, broad resolutions can quickly feel unattainable, which can lead us to procrastination or even inaction.
4 Ways to Focus on Sustainable Habits
To break free from this cycle of disappointment, it’s helpful to rethink how we approach change. If we can shift our focus from lofty resolutions to building sustainable habits, we can create a more practical and lasting path to achieving our goals.
1. Break Down Big Goals
Big goals can be inspiring, but they can be overwhelming when it comes to execution. Smaller steps are easier to incorporate into our daily lives and can provide a sense of accomplishment that boosts our confidence over time.
For example: Instead of saying,
“I’ll save $10,000 this year,” start by saving $50 a week.
“I’ll pay off all my debt this year,” focus on paying off one high-interest debt first.
“I’ll completely stop eating out to save money,” start by cutting back to one meal out per week or packing lunch three days a week.
“I’ll max out my IRA this year,” aim to contribute $100 a month and gradually increase it as your budget allows.
The key is to start small and create a foundation of good habits that can be scaled up gradually, rather than risk burnout with an unachievable target.
2. Value Consistency Over Perfection
Focus on being consistent over being perfect. Consistency builds resilience and allows habits to become second nature over time. It can also make it easier to maintain progress, even when life gets busy.
So if you miss your savings target one month, or a few months, don’t give up—simply pick up where you left off.
3. Think Quarterly, Not Annually
Instead of setting huge year-long resolutions, try focusing on 12-week or quarterly goals. These shorter timeframes make it more manageable and give you regular opportunities to reassess, adjust, and celebrate your wins.
For example:
In Q1, focus on building a $1,000 emergency fund.
In Q2, focus on reducing grocery expenses by 10%.
In Q3, add an extra $100 to your monthly retirement contributions.
In Q4, find a way to increase your income, even if it’s from a small side hustle.
4. Build Momentum
Sustainable habits thrive on momentum. Celebrate your small wins! Acknowledging your achievements serves as motivation to keep going and shows you that even incremental changes can have a big impact over time.
So take the time to recognize your accomplishments, like when you pay off a credit card balance or successfully stick to your budget for the week.
Improve Your Financial Health
If you make intentional adjustments and prioritize your financial well-being, you can lay the groundwork for long-term success. Along with building sustainable habits, here are some practical, actionable tips to improve your financial health:
Automate Your Savings: Set up automatic transfers to your savings or retirement account, so you can consistently build your nest egg without even having to think about it. Automating your savings can remove the temptation to spend, and help ensure that saving becomes a regular part of your routine.
Make Budgeting a Habit: Budgeting isn’t a one-time task; it’s an ongoing process that you can commit to and make a habit. Make time each week or month to review your spending, adjust your budget, and ensure you’re on track with your financial goals. If you make budgeting a routine, rather than a chore, you can nurture a proactive attitude and approach to managing your finances.
Track Your Progress: Tracking your progress can empower you to stay motivated and accountable. Regular check-ins on your savings, investments, or debt payoff help you celebrate milestones and catch potential issues early for timely adjustments.
Shift Your Mindset for Long-Term Success
Improving your financial health isn’t a one-time fix, but a lifelong journey. Keeping this in perspective can help you stay patient and committed, even when progress feels slow. Financial success is built over time, not with quick fixes or unplanned resolutions.
Also, remember that no one’s financial journey is without challenges! Whether it’s an unexpected expense or a missed goal, setbacks are a natural part of the process. Instead of viewing these moments as failures, see them as opportunities to learn and grow.
Avoid the New Year’s resolution trap; instead, cultivate consistent habits and commit to small actions that can lead to meaningful improvements in your financial well-being over time.
At Financial Fitness Coaching, we can help you ditch the resolutions and focus on sustainable habits instead. We’ll work with you to create a customized plan that fits your life, and help you stay motivated as you work towards achieving your long-term goals and finding financial freedom.
Ready to take the next step? Join our 30-Day Financial Wellness Challenge to kickstart your journey with daily actionable steps. Or, if you’re looking for more accountability and personalized guidance, schedule a free Discovery Call to explore how we can help you achieve your goals.