New year, new beginnings, new opportunities. That’s the general spirit of January. And why not set your goals high for the coming year? Making even small changes can significantly improve your financial future.
Did you know? Only 8% of new year’s resolutions are kept
Making new year’s resolutions can largely be deemed as a pointless task, with only 8% of resolutions being seen through. That’s more than nine out of ten people failing at what they set out to do on 1 January.
There is even a statistical “cracking point” based on a recent poll and Friday 24 January is considered to be the day when people will give in to temptation as they can no longer sustain whatever it is they promised to themselves they would do more of, or do less of.
A couple of key reasons that people don’t stick to their goals is:
- The goals are too short term, with an expectation for immediate gratification
- The goals are unrealistic
- The focus is solely on the end result rather than the “stepping stones” required to get there
- They don’t seek help from professionals who can guide them along the way
- Bad habits need to be broken to see significant change
Set long-term realistic goals
When it comes to your finances, long term planning is, more often than not, a more effective way to achieve desired results. Quick fixes, similar to new year’s resolutions, are usually unsustainable.
Start the process by listing your 1 year, 3 year and 5 year goals. Plus, any much longer term objectives, such as when you would like to retire or when you would like to be mortgage free.
It may be that you are a dental associate looking to buy a dental practice this year. Or a medical consultant on the road to expansion. List business objectives as well, because your business and personal finances are wholly interlinked.
Set short-term “stepping stones” as targets
These longer term objectives can then be broken down to shorter term targets to keep you on the road to fulfil your financial goals.
Change habits for better financial health
A person’s financial health can largely be attributed to their habits. This doesn’t necessarily relate to your habits as in whether you spend your cash in the golf club or on luxury holidays, but more the ingrained habits of an individual. For instance:
- Are you a planner?
- Are you a worrier?
- Do you bury your head in the sand about things you don’t want to deal with?
- Are you a procrastinator?
- Do you air on the side of caution, or are you a risk taker?
- Do you ask professionals for help when you need it, or do you go it alone?
- Do you work to live, or, live to work?
Whatever habits you have accumulated over the years, if significant change is to take place then old habits, however hard, often need to be changed.
A new approach for a financially healthier 2015
If the voice in your head has been talking to you for a while now about improving your financial position to secure a happier future for you and your family, then make this the year to change and do something about it.
Change could be related to working out a sustainable retirement plan, ensuring you have the best mortgage rate or clearing that debt you have been meaning to shed for a while. Or, it could be time to take the plunge for a new business venture.