New year resolutions are everywhere, and they are dime a dozen. And frankly, you are probably sick of seeing and reading about them, so I won’t give you more of these. Instead, I do want to talk about a few things you can do in the beginning of the year, to ensure you have a successful year for your money and finances.
First off, make sure to know your numbers and write them down, so you can review and reflect on your progress midway and end of the year: this includes your debt, your current dividend payouts and average yield etc. You don’t have to be too detailed about the granular details, but you want to at least have a good idea of what the numbers are. For example, let us say you have two credit cards, each of which is carrying a balance of $1K. Then you want to list them both, with the amount owing on each.
Next, you need to have some goals – we said we wouldn’t talk resolutions – on your ideal situation by the end of the year. This includes for example how much do you want your debt level to be at? Do you want to have paid off your balance in full by Dec 31? If so, write it down. Do you want your investment to reach a certain amount? then write it down too. What about your dividend income? Do you want to get it to a specific amount? Write that down too. The idea here is that by writing your numbers down, you are committing to it mentally and physically, compared to just knowing the numbers mentally and not writing them down.
Finally, choose an area that you would like to focus on for improvement or change and spend some time figuring out how you can make these changes. For example, are you spending too much money on junk food, which is not only draining your wallet but also ruining your health? If so, devise a plan on how you will break this habit, and more importantly, how you will replace it. It sounds easy to say, “Starting this year, I will spend less money on fast food,” but implementation in real life is a whole different game. Instead, start by identifying healthier, more affordable alternatives. Set specific goals like bringing your lunch from home or preparing snacks in advance. Track your progress and hold yourself accountable. You might even want to reward yourself when you stick to your plan for a week or a month. For example, a few years ago, I started shifting any money I saved by not buying junk food, into saved money.
Remember, change takes time, but with consistency, you will gradually replace old habits with new, healthier ones that will benefit both your finances and your well-being. And there is no better time to start than the new year. However, this is not about making fleeting resolutions that often fall by the wayside. It’s about setting intentional, sustainable goals that will make a lasting impact. The new year is simply a fresh opportunity to commit to the changes you want to see in your life. So, take it one step at a time, celebrate your progress, and know that the small, consistent efforts you make today will lead to big results tomorrow.