Every year millions of individuals make a vow to improve their financial standing, but four out of 10 people give up on their goals. Whether your resolution is to save more money, pay off debt, buy a house or cut spending, you know change is not easy. Like many of you, I made a resolution to increase my savings account by 5 percent each month. While 5 percent may seem like a small amount, it’s a start and over time my savings will become thousands of dollars—supposing that I stick to my resolution.
The problem about committing to a resolution is recognizing we need to modify certain habits to accomplish our goals. If every year we make the same resolutions, but we end up in the same place, then something has to change! And that change starts by trying to correct financial habits. Experts at MissMoneyBee.com have 4 tips that will help you stick to your resolutions:
Be specific: Writing a vague resolution is a recipe for disaster. Some people tend to write resolutions that lack details and determination. For example, many of us say “I want to save more money,” or “I want to pay off debt,” but we fail to describe the specifics. Your money resolution should always include the amount of money you are trying to save, the time frame to accomplish your goal and the purpose of your resolution. For example, “I want to save 10 percent of every paycheck over 10 months to buy a new car by December of 2013.”
Be realistic: Setting realistic resolutions is the key to success. It’s not realistic to think you can pay $12,000 in credit card debt, if your annual income is $20,000. This doesn’t mean you have to give up on your resolution, it just means that you need to shoot for a lower amount.
Look for help: Knowing that you are not alone while pursuing your resolutions not only will give you piece of mind, but it will help you achieve your goals faster. One of the apps that can help you save hundreds of dollars is Coupon Sherpa. This app offers coupons and deals by category and store name. It also allows users to compare prices and locate stores that offer great deals. Another way to find help is to talk to financial advisers. At ConsolidatedCredit.org you can find free financial advice and financial literature to learn more about budgeting, saving money and paying off debt.
Be flexible: If your life changes drastically, saving a big portion of your salary may no longer be realistic. For example, if your income was cut down to a fraction of what it once was, saving as much money as you initially planned is out of the question. Tweaking your plan to address income changes will keep you motivated in reaching your goals.