Setting resolutions early often means a free pass to overspend and overindulge during the holidays. What’s charging a little more to your cards, or heading back for seconds, when you’ll be wiping the slate clean in a couple of weeks?
A fresh start is a strong motivator, but to achieve change that lasts throughout the year, you must set up a sustainable system.
This year, your list should include just one financial resolution. Channelling your energy toward your top priority is more effective than working through a lengthy list of should-dos. After you’ve settled on your top financial goal, ask yourself how to get there, then break the answer into manageable steps.
Actually, break it down into ridiculously small steps, according to Martha Beck, life coach, author, and O Magazine columnist. According to Ms. Beck, who prefers to break her steps down on Post-it notes, your tasks should feel like turtle steps – so small that you could easily accomplish one per day.
If your goal is to save more, consider setting up automatic monthly transfers from your chequing to your savings account. Jot it down on a Post-it, slap it on your office wall, and then work backward, creating baby steps: Set up an account with Mint.com for an overview of your finances, determine how much you can reasonably save each month, create savings subcategories in your online banking account, and link your chequing account to your savings account.
Then you have to figure out how to get past the February hump. Setting up an accountability partner or a money group – a Weight Watchers for your finances – will help you stick with your resolution.
If you’re specific, keep it simple, and find support, greater financial peace is yours in 2012.
Angela Self is one of the founders of the Smart Cookies money group. Read her weekly column on managing debt and saving money at the Globe's personal finance site.
