Achieve Your Money Resolutions In 2021!January 18 2021
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Nearly half of all Australians have pledged to save more money in 2021, while others are looking to get out of debt and work less, according to new Finder research.
However, the odds are stacked against them: nearly 80 per cent of those who made a New Year’s resolution in 2020 failed to hit them according to a YouGov study.
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The main culprit is motivation: willpower is a finite resource and can dry up quickly, so if there isn’t a strong reason attached to the resolution, it will fall through as soon as the New Year’s high ends.
“Motivation is driven by emotion and that can be positive, as long as it is used for a short-term objective. For some, a New Year’s resolution can serve as a motivator. But since motivation is based on emotion, it can’t last long,” health and wellness adjunct lecturer at the State University of New York, William Clark said.
“Think of it this way: No one can laugh or cry indefinitely, and that is exactly how we know that motivation will fail.”
That’s why discipline is a better friend than motivation. Create the habit, and stick to it. Here’s how.
Create a plan
“Most people ditch their resolutions early on because they haven’t created a plan,” Finder money expert Taylor Blackburn.
Head of financial wellness at Employment Hero, Ray Jaramis, agreed. He said the first step is to take five minutes to ask yourself what you would like to achieve in the next one to five years.
“Be intrinsically motivated by setting out clear goals. Planning for the next 12 months might seem even more overwhelming, but once you have your big annual goal, break it down into monthly goals and monthly targets. Small bite size goals over time are a great way to digest big objectives,” Jaramis said.
Keep it simple and realistic
One of the biggest mistakes you can make is to have too many resolutions. However, you’re more likely to hit your goals if you have one or two habits you’d like to change, rather than multiple things at once.
And be realistic: if your goal is to purchase a home, you’re going to need more than one year if you’re starting from scratch.
“Instead, create a detailed timeline and break your plan down into manageable goals you can hit monthly or weekly,” Finder suggested.
“A great way to ensure you stick to your goals is by sharing them with someone else, like a partner or family member so that you have some additional accountability for what you want to achieve,” the co-founder of digital lending and payments provider WLTH, Brodie Haupt said.
“This is a great way to keep motivation, hit your goals, and take control of your finances in 2021.”
“Financial resolutions are a great way to kick start your year. However, in order for you to achieve your financial goals it's important to constantly revisit them and track them throughout the year,” Haupt said.
If your goal is to save money, Haupt said it’s also critical to stay in touch with your budget.
“Track your budget on a regular basis, so that if you are dropping off and missing your budget and savings goals it is very powerful to understand why and if you are sticking to your budget it is highly motivating to see,” he said.
“It is very common for people to set a budget and then they don’t spend the time managing it and tracking their progress, it's a big mistake and defeats the point of having a budget in the first place.”
Don’t give up if you fall off the bandwagon
Changing habits is hard and takes time, and it’s important to remember that while January can seem like a great time to turn over a new leaf, changes can be made at any time throughout the year.
“If you fall off the bandwagon, don’t give up. It’s normal to slip up occasionally, but you shouldn’t let this discourage you from persevering. Instead, aim to get back on track as soon as possible, and don’t dwell on your “lost” progress – keep looking forward!” Finder said.
Start the year strong by achieving your money resolutions!
Source: Yahoo! Lifestyle
Dean, L. (2021, January 15). Do new year's money resolutions actually work? Yahoo Lifestyle Australia. https://au.lifestyle.yahoo.com/how-to-hit-your-new-years-money-resolutions-220901653.html