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4 Ways to Keep Your New Year’s Resolutions

Filed under: Retirement

Couple With Laptop Paying Bills Online At HomeMany people set financial goals as New Year’s resolutions, but these new habits just don’t stick. Why not? Usually, it’s because you made one of these common mistakes… But here is how you can avoid those blunders, and save more money in 2016.

You set an annual goal. If you decide to save a certain amount of money by the end of the year, the goal can seem overwhelming and tempt you to give up. Or, you might procrastinate and assume that you can always make up for lost time in the fall. Instead of setting one large goal for the year, set smaller, more attainable monthly goals. Tell yourself you will save X amount of money each month, and you will find that your resolution is much easier to keep.

You’re relying on will power. Each individual only has so much will power, and at some point we exhaust our supply. You know how this works with dieting, and it’s no different when you’re trying to save money. Instead of relying upon yourself to maintain your own will power throughout the year, set yourself up for success by signing up for automatic payroll deductions. Divert money straight into your retirement fund so that you’re never tempted to spend it.

You wear yourself out in January. It’s difficult to completely overhaul your budget and savings rate all at once. Rather than relying upon huge changes all at once, commit to gradually changing the way you spend and save. Set up your payroll deductions to gradually increase throughout the year, so that you learn to gradually trim your budget by making small changes one at a time. If you earn a raise at some point during the year, keeping your resolution will actually be easier than you imagined!

You aren’t seeing the bigger picture. It’s one thing to commit to saving money, but it can be hard to keep that resolution if you don’t focus on why you’re doing it. Think about your goals for retirement in concrete terms: Where do you want to live? Do you want to work part time? Do you want to pursue any particular hobbies? Remember why you’re saving this money, and you’ll feel more motivated to stick to your goals. Remember, you can call us to schedule a consultation, and we will help you decide upon a long-term savings goal that can supply the income you will need in retirement.

15235 – 2016/1/12