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Tomorrow a new year begins and many people start it off by making some resolutions or goals.
I get it – it's a fresh start that can inspire a desire to improve.
However, it's not the date that really matters when it comes to goals. In fact, if you look at the numbers, things don't look so rosy for New
Most People Fail with Their Goals
As simple as it sounds though, many people fail with their goals.
Do you know how many people fail with their goals for the new year?
Would you believe 92% of people fail with their resolutions?
Why such a high failure rate?
Many times it's because of how they design their goals.
Let me show you what most people get wrong by looking at some popular money goals.
The Top Goals People Make About Money
According to Fidelity 9th Annual New Year Financial Resolutions Study, only 27% of Americans are planning on making finances their focus.
The most common financial goals people make for the year are:
- Save more.
- Pay down debt.
- Spend less.
These can be fantastic things to strive towards, but for most couples, they'll quit before making a meaningful mark on them.
Look at how these goals are presented and see what they are missing.
A few things that stand out to me:
- Too Vague. There's no actual end goal. How will you know you're done? Is saving an extra $5/month enough of a win or are you trying to save $500?
- No Way to Track Your Progress. Most people don't change overnight, do to stay motivated it's good to see how far you came. These goals don't have that option.
- No Why. Yes, getting out of debt and saving more are financially savvy moves. They are only part of the equation though. why do you want to get out of debt? Why do you want to have more savings? Those answers will help you discover what's your true motivation and be a crucial step to making sure you achieve your goals.
So you know what not to do. How can you set yourselves up for wins next year?
Make some SMART goals!
How to Create SMART Goals
If you've listened to the podcast or known me for a bit, you know that I'm a fan of SMART goals.
For those unfamiliar with SMART goals, here are the key things you need to know when making them.
- Specific: Choose a specific goal. Don’t say ’save more’, but instead choose ‘put aside 5% of our paychecks into savings for our emergency fund.’
- Measurable: How do you know when you reached your goal? If you are saving an emergency fund up, consider setting aside 3-6 months of your living expenses in the account and track your progress.
- Attainable: It's better to work on a few goals at a time so you don’t feel overwhelmed. Be gazelle intense on the ones you have.
- Result focused: Make sure your goal is something you can do and truly believe in. Have a plan of action that you can sustain.
- Time-Based: By setting a deadline, you can work backward and break down the steps you need to take and make those your milestones along the way.
Jumpstart Your Marriage and Your Money
It’s easy to get stuck with the living paycheck to paycheck cycle. We all have so much going on, it's easy to push back our financial goals down the road.
If you want to achieve big things together with your money, grab a copy of my book Jumpstart Your Marriage and Your Money!
Inside Jumpstart, you will learn to:
- get on the same page with finances
- create a budget you both will love (Yes, it's possible!)
- pay down debt faster and get on the path to financial independence
My book is designed for busy couples to set up their finances in 4 weeks.
Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Your Big Money Goals
I'd love to hear from you! What are your big goals this year? What's your gameplan to achieve them?
This post was originally posted in December 2017. It has been updated December 2018.