Ditch the New Year's Resolutions: Set Healthy Financial Intentions Instead
🕐 Read Time 5 Minutes
'Tis the season when many people enthusiastically pursue the goals they’ve set for the New Year. When it comes to money, these goals often include tackling a mountain of debt, saving a good chunk of change in record time, creating (and sticking to) a strict budget, or some other worthwhile — but perhaps unrealistic — financial objective.
While such goals aren't inherently negative and are usually set with the best of intentions, they may feel overwhelming. Unfortunately, this makes them all too easy to abandon. Research suggests that 23% of people give up on their New Year resolutions within the first week, and 43% quit by the end of January.
While these statistics may not be particularly encouraging, I don’t share them to dishearten you from setting goals. Instead, I’d love to present a more realistic and attainable approach to reaching your financial milestones.
Jotting down your goals and visualizing their realization is exciting, but it's merely the starting point. Genuine progress happens when we dig deeper and adopt a mindset and lifestyle that aligns with our goals.
This is where establishing financial intentions comes into play. Our intentions propel us forward, even if we temporarily veer off course from an ambitious goal we've set.
What Is an Intention?
An intention is a purposeful and conscious decision to direct your thoughts, actions, and decisions toward a particular objective. When it comes to your finances, setting intentions involves cultivating a positive relationship with money and making confident decisions aligned with your values and goals.
As we usher in the New Year, it's a fitting time to embrace the power of intention to shape your financial destiny. Here are a few ways to achieve this:
Identify your values
Invest in financial literacy
Create financial affirmations
Ready to break the cycle of prematurely abandoning your financial goals and instead make meaningful progress? Let's explore how these practical strategies can set the stage for a financially intentional year.
1. Identify Your Values
The first step in setting financial intentions is to clearly identify what matters to you. It's easy to set generic goals like saving more for retirement or increasing your income, but these goals may be more prone to abandonment without a deeper value attached to them.
Take a moment to reflect on your values, priorities, and long-term aspirations. Which financial goals resonate with your vision for a fulfilling life? For instance, if you value freedom, this value becomes the driving force behind your goal to refine your budget and pay off debt so you have more financial flexibility.
Whether it's making those yearly dream vacations possible for your kids, securing a safe and stable home for your family, funding your kids' higher education expenses to give them a head start, or shielding your family from financial troubles with an emergency fund—pinpointing what matters to you serves as a compass that guides you toward your goals, even amid challenging seasons.
2. Invest in Financial Literacy
Knowledge is a key ingredient for financial success and becoming financially intentional. If you want to improve your financial well-being, it's vital to dedicate time to boosting your financial literacy. This involves developing a solid understanding of various financial components and skills, such as budgeting, saving, investing, managing debt, and planning for the future.
Like many aspects of life, setting financial goals without a thoughtful plan is unlikely to lead to success. Investing the time to enhance your financial literacy equips you with the knowledge to make confident, well-informed, and strategic decisions to achieve your goals.
Start by focusing on the specific goals you're working towards. For instance, if your goal is to pay down debt, educate yourself on repayment strategies, interest rates, and debt consolidation. If you're ready to start saving for your kids' higher education expenses, research the various types of accounts you can utilize and evaluate their pros and cons.
Make it an ongoing commitment to enhance your financial literacy by exploring resources, attending workshops, listening to podcasts, reading insightful books on personal finance, or partnering with a financial professional.
The more you understand money management, the more adept you'll be at making confident decisions. Also, managing your finances can become more fun and engaging as you become more skilled (and see the evidence as your finances improve!).
3. Create Your Financial Affirmations
Many of us are mindful of how we speak to others because we recognize the impact of words and their ability to either uplift or tear down. When it comes to our own self-talk though, we often neglect this care and consideration—and it’s all too easy to engage in negative, overly critical dialogue with ourselves.
The words you speak over your life matter, and negative self-talk can have an especially significant impact when it comes to money matters.
To achieve financial progress, you have to believe in your capability to do so, and you can accomplish this by affirming to yourself that you can. Positive affirmations hold the power to shape your mindset and impact your behavior.
Write out a few financial affirmations rooted in your values and goals. Each day, allocate a few moments to verbalize these affirmations aloud, reinforcing your commitment to your goals. Here are a few examples to get you thinking:
I am in control of my finances, and I make good financial decisions.
Every dollar I invest brings me closer to financial success.
I am deserving of a prosperous career and attract opportunities for advancement.
I have the skills and resources to create a profitable business.
I am grateful for the abundance that surrounds me, financially and otherwise.
I am constantly learning and growing in my financial knowledge.
Regular repetition of these affirmations not only serves as a consistent reminder of your financial intentions, but your growing belief in them can foster a more optimistic mindset, potentially attracting more positive financial outcomes.
Remember, the words you choose matter; be kind to yourself this year and always.
Preparing for a Financially Intentional Year and Beyond
Repeatedly setting the same goals each year without witnessing their realization can be disheartening—but there is a better way to make progress.
If getting your finances in order feels like a persistent and isolating challenge, rest assured you're not alone. It's precisely why this year, our priority is to guide, support, and celebrate you as you lay the groundwork for a more financially intentional life.
Ready to get started?
Join our free 2024 Financial Wellness Challenge: 30 Days to Get Financially Fit! 🎉
Every day for the next 30 days, you’ll receive an email with an actionable task and words of encouragement designed to help you build positive money habits, foster a healthier relationship with your finances, and move closer to your financial goals—one step at a time.
Sign up now for 30 Days to Get Financially Fit and start the year off strong by being intentional with your finances.
Together, let’s make 2024 be the year you look back on as the turning point in your financial journey.