Set Financial Goals That Stick

January always starts strong as we share resolutions and financial goals to get healthier and wealthier (and maybe wiser, too?).  Then we watch as our good intentions melt away by mid-February… or certainly by March. Sound familiar?

Here’s the thing: while the first of the year is a great time to make changes, it’s technically just another date on the calendar like any other. We shouldn’t pressure ourselves to make extreme overnight changes to our financial lives that aren’t realistically sustainable. The name of the game for lasting change is realistic baby steps and figuring out what those are by focusing our energy on the core of what we want to change in our lives. No resolutions required.

Here’s how to identify the baseline issues you want to improve, and work on a better tomorrow for all facets of your life.

Take Inventory Before Setting Financial Goals

If you don’t know where you’re starting from, you can’t know where you’re going. The first step is to conduct a financial inventory before you make any plans or set any goals. Think of it like stepping on the scale, it might not be fun, but it’s essential if you want to measure progress.

Then, be honest. Be brutal. Studies show that we underestimate our spending by about 20%.  Make a detailed list of your debts and include balances, interest rates, and minimum payments, and take a clear-eyed look at where your money is going.

And note: Taking inventory applies to all your goals for the year, not just financial ones. If your focus is on improving your health, maybe it’s time for a checkup with your doctor, a free session with a trainer, or tracking your calorie intake before you commit to running a marathon or losing 50 pounds.

Takeaway: Whatever your aspirations are for this year, start by taking stock of where you are now and how long it might take to reach your goals—one day at a time.

Know Your Why

Before you start setting goals, take a moment to ask yourself what you want to accomplish and why.

It’s one thing to say, “I want to save more money” or “I want to get promoted.” But it’s another to dig into the reason behind those goals. Do you want to save money so you can finally feel free to leave a job that’s draining you? Do you want that promotion so you can fund your daughter’s college dream with a minimum of loans?

Your why is the emotional anchor that makes your goals stick. When you’re clear on it, it becomes a lot easier to stay motivated and make better choices throughout the year.

Takeaway: Identifying the deeper purpose behind your goals is far more powerful than simply naming them.

Start Small

Commit to something small. If your goal is to increase your savings, don’t aim for $1,000 a week or even $100 if that feels like a lot. Instead, start with $10 or $20 and ramp up from there. It’s easier to walk before you run.

Small steps build momentum, and momentum builds confidence. The name of the game is taking manageable steps toward bigger financial goals. You want to be ambitious, but also realistic, because unrealistic goals are the fastest route to giving up.

Takeaway: Small commitments increase your chances of success and help you keep going, even when life gets busy.

Plan

Whatever you’d like to achieve this year, have a thoughtful plan for how to make it happen. Without one, there’s a high probability it won’t.

If you want to start running, schedule two or three runs a week and put them on your calendar. Looking to switch careers? Commit to researching and reaching out to one new contact each week on LinkedIn. Hoping to finally build an emergency fund? Set up an automatic transfer from checking to savings right now.

Takeaway: Mini-plans and small, structured actions will move you closer to your goals for the New Year.

Visualize Your Success

There’s real power in visualization. Research shows that imagining specific outcomes can make them more likely to occur. While you can’t simply picture touchdowns for your life and watch them appear, there is something to be said for incorporating visualization into your planning process especially when you make it tangible.

Vision boards are a great and fun way to “see” your financial goals and aspirations for the year. You don’t have to go full Martha Stewart. Just grab some paper, magazine clippings, and your best handwriting, then start creating. The point isn’t perfection, it’s clarity.

Whether it’s an image of your dream home or a photo of your kids that keeps your “why” front and center, the goal is that you make your aspirations visible.

Takeaway: Knock your goals out of the park this year with images, words, and inspiration that help your brain believe anything is possible.

The Bottom Line

This year, skip the resolutions and focus on setting realistic, meaningful financial goals. Because the best financial goals aren’t made from guilt or pressure—they’re made from purpose.