How to Make Money Resolutions - All Year Long

As a personal financial coach, I see a lot of clients who set lofty financial goals every January only to be disappointed with their ability to follow through. So, should you even make money resolutions? My perspective is that you definitely want to have your own money goals, but you can declare them or refresh them whenever it works for you. Your relationship with money grows and evolves throughout your life, and it is natural that financial goals will also change over time.

January is a magical time of starting over for some people, but you shouldn’t feel like this is the one time in the year you can make money resolutions. You can have a fresh start with your relationship to money anytime you want. You can declare New YOU Year at a time that works for you.

How about Valentine’s Day? 

You can hug your hard earned money and love how your compound interest is growing.

Maybe the Spring Equinox? 

Sweep out all of your false narratives about “being bad with money” and check one financial organization task off your list.

Add a ritual to Friendsgiving? 

Be thankful for each other and share a life and a money goal for the next 6 to 12 months.

Whenever you are ready to begin, it’s most important to embrace reality and set honest goals. For a recent time period, perhaps last year or last quarter, make a list of all of the things that went well in your life and in your finances. 

I spent more time outside.

I completed a painting class.

I started an Emergency Fund.

Then ask yourself. What are my life goals for the next 12 months? Or maybe the next 5 years? Get as specific as possible so that you will be able to reflect back and see incremental progress. 

I would like to buy a house someday. 

This is a wish, not a goal.

To get what you want out of your life, you can use a process called SMART goals (because we are Smart Sisters 😃).

Smart goals are those that are Specific. Measurable, Actionable, Realistic and Timebound. An example is below:

I want to accumulate the money for a down payment on a $400,000 house. 

I will do that by saving $200 a week. or 

I will do that by picking up one extra shift a week.

Okay! That is something we can work towards.

The next time you reflect on what has gone well in your life and your finances, you will then be able to count how many weeks you were able to save $200 or get that extra shift. It may not happen every week, but you will definitely see forward momentum, and that will keep going and going.

Need some suggestions about how to celebrate your New YOU Year with your money? Here are a few:

Set money goals throughout the year.

You can set and measure money goals on any schedule that works for you, but commit to those dates! Put a money date on your calendar for at least every six months, or line up those invitations with another event from the Smart Sister Finance 2024 Financial Calendar. A money date should include a review of your spending for the last quarter or two, an assessment of your savings as well as a review of the balances and performance of your retirement and investment accounts. Want to have support for your money date? Contact Smart Sister Finance.

If you are self-employed, using the quarterly estimated tax payment schedule can be a way to also set aside time to organize your receipts and expenses throughout the year so it is not such an overwhelming process at tax time.

Spend time on your relationship with money. 

Like all relationships, respect and honest talk matters. If you are ignoring or avoiding money, the situation is not going to get better. You can use the Smart Sister Finance Money Visualization questions to uncover your relationship with money. 

Most of our behaviors around money come from our parents; we are either behaving just like they did around money or potentially the exact opposite way they did. Realizing what you are doing and hearing the (likely false) narrative in your head about your own finances is an important first step. It is also important to understand your own relationship to money before you are partnered with another human so you can explain your perspective and address any money stress from a place of self-knowledge. Need more help on financial compatibility? Check out this blog post.

Get the most out of your savings through a High Yield Savings account. 

This is a small but important move! As the Federal Reserve has raised interest rates over the last few years to combat inflation, most traditional banks have not kept up. Do not miss out on making money on your money. Seek out a High Yield Savings account (paying around 4.5%) at a credit union, or one of the online banks such as Capital One, Marcus or Ally. 

Don’t need your savings for a while? You can also get a Certificate of Deposit (CD) through one of the institutions above for a set amount of time and a fixed interest rate. Even if the interest rates start to decline in 2024 (as they are expected to), you will have locked in your interest rate for 12, 18, 24 months or more.

Your relationship to your finances will continue throughout your life, so it is important to learn how to live together in harmony with your money. Personal finances are also personal - what works for your friend may not work for you. It is okay to find your own way, your own systems and your own definition of what a satisfying life is.

It doesn't matter where you are on your financial journey, just take one step forward. If you need a companion along the journey, your Smart Sister is here for you.