How To Stick With Your Financial New Year’s Resolutions - Forbes

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New Year’s resolutions are easy to make. You even can find books and web sites with advice on how to decide on your resolutions and make them. That’s the easy part, especially with financial resolutions. The tough part is following through with them through the year.

There are simple steps you can take to keep your financial resolutions, increasing your financial security and independence during the year.

Start with fun or easy steps. Many people start with a grand plan to improve their financial lives. That’s a great idea, and the details of their plan usually also are great. They’re finally going to have an estate plan, or update the plan that’s more than five years old. They’re also going to save more and actually develop an investment policy. They want a plan to pay for long-term care down the right, and while they’re at it they’ll make a detailed review of their medical insurance to be sure it’s the right plan at the right price for them.

All of that is a lot of work. Yet, once you sit down to start working on that list, it can be overwhelming. You have to contact a lot of people, gather a lot of data and make a lot of decisions.

The first move should be to break all the goals into groups, maybe even into individual goals. Then, start to tackle them individually or in related bunches. You have the whole year to take all the actions. Don’t set an artificial deadline and decide you need to finish it all by the first day of spring.

Most people make progress by beginning with something that’s easy or fun (preferably both) for them. Everyone’s different. The part of the plan you find to be fun or easy might be the last thing someone else wants to do. Even if none of the actions seems fun to you, there should be items on the list you’ll find easy. Take on one or two of them first.

Get something done. Research in a lot of different disciplines indicates that the hardest action is the first one, and the more you do the more confident and motivated you’ll be.

Workers with large tasks in front of them are more confident and more likely to believe they’re making progress toward the goal when they’re making any kind of progress. The best way to be motivated isn’t to stare at the list and wait for inspiration. Don’t wait until you’re in the right mood. The best way to increase your motivation is to pick something on the list and do it. Making progress is likely to make the goal seem attainable and motivate you to take other actions.

Make a specific plan. Don’t simply say, “Tomorrow I’m going to start on the estate plan.” Instead, make a list of the specific steps you’re going to take tomorrow to make progress on the estate plan. For you, that might mean you’re going to compile a list of your assets and liabilities and the supporting documentation. When you finish one task, make a list of the specific actions to be taken the next time you’re working on the resolutions.

Find some support. The easiest way to continue making progress on a project is to have some support from others. That might mean simply letting one or two people with whom you talk frequently know what your plan is. Ask them to ask about your progress during the year and encourage you to keep going. If you’re married, sharing the plan with your spouse can be helpful. You regularly can discuss goals and next steps.

For some people, working with a financial professional is the support they need. To put together your estate plan, first select an estate planning attorney. Together you develop a timely to develop the plan. You have someone to be accountable to, bounce ideas off and offer help and suggestions when needed.

Research shows people often produce more when they have one or more people who can provide support and motivation.

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December 24, 2019 at 07:30PM
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How To Stick With Your Financial New Year’s Resolutions - Forbes
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