How many of us can honestly say that we have made, and
stuck to, all of our New Year’s Resolutions over the years? For
those of you who have, I congratulate you; you have achieved
something that many struggle with each year. Recent research
from YouGov Omnibus shows that only 1 in 5 Americans has
stuck to their New Year’s Resolutions. Whether it is losing
weight, creating better work/life balance or taking up a new
hobby, often times our busy lives get the better of our good
intentions. It can be the same with Financial Resolutions,
unless you not only create the plan, but also create an easy
way to track and measure (and celebrate) your results.
You may have heard the expression “If it can’t be measured, it
can’t be done.” In order to create the plan, the place to begin
is putting your goals into writing. It is o.k. to have both short-term
and long-term goals (a new house, and retirement, for
example). However, it is critical for success to make sure that
the list is not too long and that the goals are clear and easy to
measure. If, for example, your goal is to “save more money,”
like 55% of those recently surveyed by Fidelity responded,
then how much? Set a specific target based upon your budget
and the timeframe. Avoid vague goals like “send children
to a good school” or “have a comfortable retirement.” Being
specific is critical to an effective process.
In order to figure out what you can accomplish, you first must
evaluate your current baseline for fiscal fitness. Do you have
a good handle on what you spend? Do you know your credit
score? Are you maximizing all the savings options available
through work? Are you spending money on things that will
diminish your ability to meet your goals? A good look at your
current spending and saving habits can be surprising and may
result in some revisions to your goals.
Once the goals are written, the next step is to make them
easy to track and monitor. There is the more old-fashioned
way to do this (pen and paper, or an Excel spreadsheet) or
you can take advantage of various software (Quicken, Mint)
to ameliorate the reporting process. For short-term goals,
monthly monitoring makes a lot of sense, whereas for longer-term
goals, a semi-annual or annual review is preferable.
If you are successful at one (or more) of your goals, plan a
celebration. Success breeds success, so it is important to
make progress milestones memorable. A hike in the woods,
a family movie night or a game night with friends, whatever
you wish that you could spend more time doing. If you are not
completely successful, it may be time to take a look at why and
tweak the goals accordingly.
Having a written plan has proven to be the key to building wealth,
at all income levels. Whether or not you are currently the type
of individual who is good at planning, a few simple steps can get
your resolutions kick started for 2019. As always, our team of
CERTIFIED FINANCIAL PLANNER™ professionals stand ready to
help you create and implement a successful financial strategy.
In the meantime, we wish you and yours a
wonderful holiday and a Happy New Year!
This material is provided for general information purposes only. Canandaigua National Trust Company of Florida is an affiliate of Canandaigua National Bank & Trust. Investments are not FDIC insured, not bank deposits, not obligations of, or guaranteed by, Canandaigua National Bank & Trust or any of its affiliates, including Canandaigua National Trust Company of Florida. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please contact your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.