Want to crush your New Year’s financial resolutions this time around? Let’s face it, statistics paint a grim picture: a quarter of us ditch our financial goals within the first week, and nearly half fall off the wagon by January’s end. But this year, let’s rewrite the narrative!
In this article, we unveil four effortless hacks that will help you stick to your financial aspirations, whatever they may be. Whether you’re aiming to save for that dream holiday, conquer debt, or start investing, these practical tips will help you reach your goals with minimal effort.
How to stick to your financial New Year's resolutions
New Year’s financial resolutions frequently fail because establishing new habits and initiating change can be challenging. However, unlike starting a diet or training for a marathon, there are ways to let you improve your finances on autopilot. Here are four incredibly simple money hacks to kickstart your journey and effortlessly keep you on track.
1. Write down your goals
When it comes to New Year’s resolutions – or any goals for that matter – getting started is often the most difficult part. That’s where the first, unexpectedly powerful hack comes in: write down your goals. Studies show that simply putting pen to paper (or fingers to keyboard) can dramatically increase your chances of success. In fact, one study suggests that people who vividly describe or picture their goals are up to 1.4 times more likely to achieve them.
Writing down your specific financial goals for the year makes them tangible and actionable, transforming vague aspirations into defined targets. The act of physically recording them strengthens your commitment, turning distant dreams into concrete destinations on your financial journey. Plus, it serves as a constant reminder, keeping you motivated and on track throughout the year.
So, don’t underestimate the power of a pen and paper. This simple yet potent hack requires minimal effort but can be the launchpad for significant financial progress. Get started today by grabbing your chosen writing tool and capturing your financial goals.
2. Automate your finances
Once you have outlined your financial goals, let’s explore let’s explore a powerful efficiency booster: automation. Automating your finances is about setting up systems that handle routine tasks on autopilot, freeing you from mental burdens and ensuring consistent progress towards your goals. Forget the hassle of remembering due dates and manually transferring funds – let technology work its magic in the background! Here are a few examples of how you can automate your finances, depending on your money goals:
- Building an emergency fund: Set up recurring transfers from your checking account to a dedicated savings account for your emergency fund. Choose a frequency and amount that aligns with your budget and timeline.
- Debt repayment: Streamline your debt repayment with automatic transfers towards your outstanding balances. You can either set up regular fixed payments or consider bi-weekly payments to accelerate debt payoff.
- Investment growth: Leverage the power of dollar-cost averaging by scheduling recurring investments into your desired funds or ETFs at regular intervals. This strategy helps reduce market volatility risk and builds your portfolio effortlessly and steadily over time.
- Savings: Whether it’s a dream holiday, a new car, or a house deposit, automate transfers to dedicated savings accounts for specific goals. This ensures consistent progress without relying on willpower. You can also use microsaving apps like Plum, which round up your everyday purchases to the nearest pound and save the difference for you.
3. Use money apps to your advantage
If traditional budgeting feels like a chore, don’t worry — other options exist! Fortunately, numerous alternatives to traditional budgeting can help you conquer your New Year’s financial resolutions. Money management apps, leveraging the power of artificial intelligence (AI), offer a seamless option. These apps go beyond simple budgeting, offering sneaky savings hacks, personalised spending insights, and even investment accounts.
Many of these AI-driven money apps seamlessly link to your bank and credit card accounts, operating as behind-the-scenes assistants. This enables real-time data updates, automated transactions, and personalised nudges to keep you on track towards your financial goals.
Consider these noteworthy money management apps tailored to different goals:
- All-in-one money app: Plum (Sign up offer: Get £5 free cashback if you have at least £100 in your Plum account for 90 days, Ts&Cs apply.)
- Budgeting app: Moneyhub
- Saving app: Chip
- Investing app: InvestEngine (Sign up offer: Get up to £50 when you invest at least £100 with InvestEngine, Ts&Cs apply.)
4. Find an accountability partner
Got ambitious plans for this year? Whether it’s maxing out your Stocks and Shares ISA or saving for a special financial milestone, you’re not alone. Sharing your goals with a supportive cheerleader can significantly boost your chances of success. Research suggests that telling someone your goals makes you 65 per cent more likely to achieve them. What’s more, your chances of success increase to 95 per cent when you schedule ongoing meetings with your partner to check in on your progress.
But what if your inner circle doesn’t share your financial aspirations? Don’t despair! Consider teaming up with a finance coach. These experts can provide personalised guidance, accountability, and support, helping you navigate your financial journey and crush your goals.
Whether you choose a friend, family member, or professional coach, remember, that the key is finding someone who believes in you and is invested in your success. And don’t forget, the support goes both ways! So share your knowledge, celebrate each other’s wins, and offer encouragement along the way. Together, you can turn your financial resolutions into reality.
Final thoughts on nailing your New Year’s financial resolutions
Hitting your New Year’s financial resolutions doesn’t have to be a struggle. To recap, use these simple hacks to reach your goals effortlessly:
- Double your success by writing down your goals.
- Automate your finances and watch your money grow while you relax.
- Make the most of money apps to budget, track, save and invest.
- Boost your success up to 95% by sharing your goals with an accountability partner.
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