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Every January, millions of people set New Year’s resolutions with the best intentions: get fit, get organised, or, notably, improve their financial situation. Yet by the time February rolls around, many of these resolutions have already fallen to the wayside.
The nature of New Year’s resolutions can set us up for failure. They’re often vague, overly ambitious, or set without the necessary plan to achieve them. Here’s why resolutions often don’t stick:
- Unrealistic Expectations: Setting massive goals, like eliminating all debt or saving thousands in a few short months, can lead to discouragement when the reality doesn’t match up.
- Lack of Accountability: Resolutions are easy to abandon if no one is holding us to them. Without regular check-ins, motivation fades, and the goals are quickly forgotten.
- Overconfidence: People often assume they’ll simply have more willpower in the new year, but without real change in mindset or habits, it’s challenging to stick to resolutions.
- Thinking Too Big: Big-picture goals, like “save more money” lack specificity and can feel daunting. Without smaller, manageable steps, they can feel impossible to achieve.
Long-term success
To make real financial progress, it’s essential to move beyond the typical New Year’s resolution approach. Instead, consider practical steps that prepare you for long-term success. Working with a financial advisor can help make these goals achievable by breaking them down into manageable, tangible actions.
- Set Realistic Standards: A good advisor will work with you to set goals that are ambitious yet achievable. For instance, rather than aiming to save half your income right away, they might recommend increasing your savings rate gradually over time.
- Provide Accountability: By scheduling regular check-ins, an advisor can keep you on track, helping to ensure you stay motivated and focused on your objectives.
- Build Confidence Through Education: Advisors can offer insights and education to help you understand the reasons behind your financial choices. By explaining investment strategies, they give you the knowledge to make informed decisions that align with your long-term goals.
- Offer Ongoing Support: Financial goals often require adjustments along the way. With regular support from an advisor, you’ll be able to adapt your approach based on changing circumstances, keeping you on the path to success.
The best resolutions aren’t about making sweeping changes – they’re about creating habits you can sustain. With a structured plan, regular accountability, and the right support, you can make significant strides toward your financial goals.
It’s not about the promises you make on 1 January – it’s about the actions you take all year long, and hopefully, many years to come.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.
Batya Shulman (batya.shulman@sjpp.asia)
Partner, Select Investors, Senior Partner Practice of St. James’s Place (Singapore) Private Limited
The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in Singapore represent St. James’s Place (Singapore) Private Limited, which is part of the St. James’s Place Wealth Management Group, and it is regulated by the Monetary Authority of Singapore and is a member of the Investment Management Association of Singapore and Association of Financial Advisers (Singapore). Company Registration No. 200406398R. Capital Markets Services Licence No. CMS100851. St. James’s Place Wealth Management Group Ltd Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 02627518.
