Achieving Your Financial Resolutions in 2024: A Comprehensive Guide

If you have made financial resolutions for 2024, congratulations on taking the first step towards a more secure financial future. However, many people struggle to follow through with their resolutions because they don’t take enough steps—or the right steps. To truly achieve your goals this year, you need more than just resolutions; you need a solid plan. Here are five common mistakes to avoid to ensure success in the new year.

1. Making Financial Resolutions but Not Writing Them Down

Studies have shown that writing down your goals significantly increases the likelihood of achieving them. While it’s not a guarantee, it does make a lot of sense. If you only talk about your resolutions, they remain just that—talk. Writing them down is the first step in creating a plan to achieve them.

2. Not Getting SMART About Your Resolutions

SMART goal setting is a concept introduced by management guru George T. Doran in 1981. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-Bound. Embracing SMART financial goals provides a blueprint for achieving them. For example, if your resolution is to save more money this year than last year, running this goal through the SMART algorithm can significantly improve your chances of success.

Specific

Instead of vaguely deciding to save more money, specify that you will save 10% more of your income. This forces you to be more ambitious and clear about your goal.

Measurable

Track your progress and develop a strategy for achieving your goal. Before you can determine if you’re successful in saving 10% more, you need to know how much you’re currently saving. Review your bank statements to get a total and set a specific dollar amount to aim for.

Achievable

Put systems in place to help you achieve your goal. For instance, set up an automatic transfer from your checking to savings account every month. This provides both a way to achieve your goal and a means to track your progress.

Realistic

Ensure your goal is ambitious but not out of reach. If saving 10% more is too much, adjust it to 5%. Conversely, if 10% is too low, aim higher.

Time-bound

Set a deadline to keep your goal from stretching out indefinitely. Having a deadline helps you stay focused and motivated.

3. Not Having an Accountability Buddy

This strategy isn’t for everyone, but it can be highly effective for some. If you thrive on sharing your progress and bouncing ideas off others, find a friend or family member with similar financial goals. They can cheer you on and hold you accountable when you miss the mark.

4. Not Working With a Financial Professional

Depending on your situation, working with a financial professional can be highly beneficial. Just as people hire fitness trainers or real estate agents for their expertise, a financial advisor can provide valuable guidance. If you have significant savings and want to improve your investments, or if you’re struggling with debt, consider working with a financial advisor or a certified credit counselor.

5. Giving Up Too Easily

Financial resolutions are often challenging to achieve, which is why you make them. It’s easy to lose motivation once the newness of the year wears off. However, unless your goals are very short-term, prepare to be in it for the long haul. Stick with it, and you’ll be surprised at your progress in a year. Even if you fall short, working towards your goal still counts as a win.

The Bottom Line

Creating specific financial resolutions for the new year is a great idea, but it’s also essential to get a clear picture of your overall financial health. Obtain your credit report and score, and identify areas for improvement. Even small changes, when combined with working towards your financial resolutions, can make a significant impact.

At O1ne Mortgage, we understand the importance of achieving your financial goals. Whether you’re looking to save more, invest wisely, or manage debt, we’re here to help. Call us at 213-732-3074 for any mortgage service needs. Our team of experts is ready to assist you in making 2024 your best financial year yet.