2017 is officially underway, as are millions of New Year’s resolutions. According to the University of Scranton, more than one third of resolutions made are money-related. Despite the good intentions, motivation and ambition, 25 percent of all resolutions fail to make it past week one. What’s the deal?
The process of setting goals for the New Year can be a time to reflect on successes and opportunities, motivating positive and meaningful change. But it’s easy to get caught up in feeling obligated to solve all of the issues in our lives in 365 days through a few unrealistic resolutions, which can ultimately contribute to feelings of failure, decreased self-worth and added stress. Coincidentally, these are not things that we typically associate with financial prosperity. When it comes to your financial goals for 2017, focus on making money your ally rather than your adversary. Sure, you may want to double your nest-egg, triple your wealth and eliminate all debt by December 31, 2017 – but are these realistic moves for you? And at what costs do these achievements come with?
Rather than resolving to solve it all, commit to reframing your money-mindset this year through a few small acts to guide your decisions, offered by our financial expert Stacy Livingstone-Hoyte.
- Regain a sense of control. Perhaps your money-resolution is motivated by the unexpected lack of green in your wallet or accounts post-holidays, which can leave anyone feeling a little blue. Rather than resigning yourself to a hopeless financial outlook, tackle holiday spending with a level-head. Gather up your receipts (paper or emails from online transactions) so that you can not only get an accurate assessment of what you spent, but so that you can ensure that your bank and credit card statements are accurate when they start to populate your inbox. Once you’ve taken this step (and forgiven yourself for any overspending), create or modify your budget for the New Year so that you can reasonably reduce your debt or revive your savings without creating a cycle of debt for the future. Military OneSource, your local Fleet and Family Support Center and militarysaves.org offer budgeting tools to help you balance payments, savings, investments and spending with peace of mind.
- Define what financial well-being actually means to you. It’s not all about paying the bills and saving for the future. Even the Consumer Financial Protection Bureau includes being “able to make choices that allow for enjoyment of life” in their definition of financial well-being. Achieving all three requires some balance and a long-term perspective, rather than solely focusing your sights on short-term achievements. As you refresh your budget for the New Year, include a discretionary spending allowance for each month accounting for daily necessities such as groceries and gas, as well as a reasonable amount for entertainment (a night out, a family outing, exploring your next overseas port-of-call, etc.). Doing so will help you plan for blind-spots that may throw your budget off track. You deserve to enjoy all that your career has earned you – just be honest with yourself in examining how you do so and
- Apply some of your holiday spending tricks throughout the year. During the year you’ll likely find yourself scrambling to buy a few gifts for anniversaries, birthdays or celebrations. Set reminders in your phone 30 days in advance of each event so that you have enough time to search and budget for a gift. When determining your gift, keep your focus on the meaning behind your relationship with the person rather than giving them the most expensive thing your remaining discretionary funds will allow. Non-material gifts—perhaps giving a memento from a memorable duty station to a shipmate celebrating advancement—can be more valuable than anything you can swipe a card to purchase. Outside of gift-giving, you can apply a few familiar tips to get your everyday shopping in check as well. Do your research to compare prices, read online reviews and search coupon deals. Don’t forget to make a list and check it twice whenever you head to the store so that you’re not going in for a roll of paper towel and leaving with a new flat screen television!
If you’ve found that by the end of years passed you’re measuring success by how closely you’ve achieved your financial resolutions, it’s time to take a new approach. Start this year with a little gratitude and a positive outlook by committing to “progress rather than perfection” as your 2017 mantra.
 New Year’s Resolution Statistics. (n.d.). University of Scranton Journal of Clinical Psychology. Retrieved December 11, 2016, from http://www.statisticbrain.com/new-years-resolution-statistics/