9 ways to revive your New Year's financial resolutions
By Teri Cettina
It's much smarter to start small and succeed at it than to try to do too much and fail.
Empyrion Wealth Management
4. Make it smaller.
Maybe your original goal was to put $100 a month toward your credit card debt. You did that for a month or two, then couldn't stick with it. "Ninety percent of the time, it's because you bit off more than you could chew," says Kimberly Foss, president of Empyrion Wealth Management in Roseville, California. Maybe it's more realistic for you to pay $50 or $25 a month toward your debt, even if it takes longer to achieve your goal. If so, go ahead and shift your resolution midyear. "It's much smarter to start small and succeed at it than to try to do too much and fail," says Foss. "Those small successes make you feel good and your momentum builds."
5. Focus, focus, focus.
If you've been trying to pay off five credit cards but are losing steam, you might be better off focusing on paying off just one card at a time, suggests Wan. Pay as much as you can afford on the one card, and make minimum payments on the other four accounts. How do you choose which card to focus on? Some experts advocate paying off the one with the highest interest rate because that will retire debt the fastest. Others suggest paying off the smallest card so you quickly feel a sense of accomplishment. "I say if you can realistically pay off a card within a year, focus on that one. However, if it's going to take you several years to pay off any of the cards, focus on the one with the highest interest rate first," says Wan.
6. Get a goal buddy.
Being accountable to someone else -- whether it's your spouse, friend or even a Facebook group -- is a great way to renew a resolution, suggests Foss. If you're trying to save for a new car, for instance, set a monthly date to check in with your goal buddy. He or she can ask how you did on your savings goal that month. If you fell short, your buddy can ask you why, and what you can do to improve your progress next month. It's helpful, but not required, to have a goal buddy who is trying to accomplish something similar. That way, you can share success strategies.
Celebrating too big, too early can trick your brain into saying, 'Hurray! I'm done!'"
Financial psychologist and author
By the way, if you're paying off debt and are private about sharing exact financial figures, you can simply use percentages, says Foss. For instance: "As of this month, I've paid off 25 percent of my goal."
7. Find a mentor.
Identify someone who is already where you want to be with your financial resolutions, and ask if you can buy them coffee and pick their brain. "People usually love to share advice on things they've done well," says Klontz.
8. Reward yourself -- a
Giving yourself a pat on the back for sticking to your goal for a few months can be incredibly motivating and help you stay on plan, says Foss. For instance, once you pay off a credit card, consider allowing yourself to use some of its reward points or cash back to treat yourself to a gift card or small purchase. However, Klontz suggests you keep your "part-way to goal" rewards modest. "Celebrating too big, too early can trick your brain into saying, 'Hurray! I'm done!' and you might not work quite as hard on completing the rest of your goal," he warns.
9. Harness the 'power
According to Foss, studies show that the human brain can only successfully handle three major tasks or goals at a time. If you gave yourself a half-dozen financial imperatives back in January, you simply overwhelmed yourself. Go back and choose the three -- and only three -- financial goals that are most important to you. Give yourself time to accomplish them before adding anything else to your to-do list. After all, there's always next New Year's!