As the calendar flips to a new year, many of us have plans to commit to a resolution, whether it’s getting healthier, paying down debt, or finally taking up a hobby. Surveys show that nearly 1/3 of U.S. individuals typically set New Year’s resolutions, and a large percentage of those include financial goals like saving more.

Yet despite the optimism, many goals don’t stick. One study by Quicken looking at New Year’s Resolutions found that 62 % of people had already abandoned their resolution by six weeks in, and up to 86 % had done so by the end of the year.

The reasons are fairly consistent: we bite off more than we can chew, we skip the deeper question of why this goal matters, or we simply aren’t truly ready for change.

Here’s a smarter way to frame your resolution, think of it like managing your personal finances:

• Start small and build gradually, like how you allocate designated amounts to your savings account. Breaking big goals into manageable steps tends to make the goal feel more achievable and can set you up for actual success.
• Clarify your “why”. A goal that resonates with you is like an investment with a clear return; one you don’t feel committed to is like a budget line you ignore. Ask yourself: Why do you want to get healthier? Why do you want to take up a hobby? Clearly, defining your why helps you see the big picture and how that goal could bring about real change.
• Make sure you’re ready. Just as you wouldn’t invest in something risky when you lack the cushion for risk, don’t commit to big behavioral changes until you’ve built the habit and environment to support them.

By treating your resolution as a long-term asset instead of a one-time bet, you’ll increase the odds that it pays off. 

Check out more on this topic at the article here.

Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.

This communication is for information and educational purposes only. This is not a recommendation for the sale or investment in any product or strategy or to be perceived as individual advice. Information presented has been prepared from sources believed to be reliable but is not guaranteed and does not represent all available data necessary for making investment decisions. Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date of this presentation and are subject to change without notice. Forecasts do not consider the specific investment objectives, restrictions, tax and financial situation or other needs of an individual. Actual data will vary and may not be reflected here. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. The opinion expressed by this individual is based on facts and circumstances known at this time, is subject to change and does not reflect the opinions of all financial professionals of XML.