Making New Year’s resolutions work for you

The turn of a fresh new calendar page on the 1st of January often inspires us to set resolutions to make the new year our best one yet. How can you make resolutions that you’ll actually stick to, and what personal finance goals should be on your resolution list? We’ve got you covered.

Making resolutions you can keep

It turns out there’s some science behind creating resolutions that stick. How many times have you declared that you would finally become a regular at the gym, going strong for a few weeks then slowing to a halt by the end of February? It turns out that you may be choosing goals that aren’t truly meaningful to you.

Noted life coach and Harvard-educated sociologist Martha Beck says that we have “an essential self, the real genuine you, and the social self, the one worried about external validation.” If the gym isn’t an authentic goal in this situation, think about your personal values and your essential self, and base your resolutions on what truly matters to you.

The question you need to ask yourself

The most important question to ask yourself when setting new year’s resolutions is simply “Why?” Why do you want to accomplish the goal you’ve set for yourself? Is it because of external validation, or is it because it’s something truly important to you — whether anyone else knows or not?

Another key to resolution success is to pick goals that you can break down into bite-sized steps. Don’t get overwhelmed by focusing on one grand goal — if you want to save for a trip to Europe in the summer, break that goal down into smaller savings milestones so that you can feel accomplished along the journey, not just once you reach your destination. Consider plotting check-in dates in your calendar over the next few months to check your progress — celebrate each time you hit a notable savings amount or book your flight and accommodations. Making goals measurable is a great way to stay accountable, and it helps you to stay motivated to keep going.

Financial goals for 2020

What are some financial goals you would like to work towards in 2020? Again, as you determine these, be sure that these goals are important to you —here are some ideas to get you started:

• Reassess your living situation — can you downsize from your house to a condo, allowing you to free up more money in retirement? Do you have clothing that you could donate or sell to a consignment store? Or maybe you’ve accumulated a number of random things taking up space in your home that could go up for sale on Kijiji? Whatever it is, make a goal of looking around your home to see what you can change to save money or uncover hidden treasures.
• Consider appointing a financial power of attorney — should there be a time where you won’t be able to make decisions about your money, a power of attorney can make financial decisions on your behalf. Set a goal to start with doing some research, and see if this option makes sense for you.
• Review your budget – Planning for your day-to-day finances is hard enough when you’re working, but it can be even trickier in retirement. OPB’s Client Service Advisors are also Certified Financial Planners®, so accessing these knowledgeable professionals could be your first step at setting up a financial plan for 2020. Contact our Client Care Centre to discuss if this option is right for you at 1-800-668-6203 or 416-364-5035 or email us at clientservice@opb.ca

Whatever financial goals you choose, make sure they’re meaningful and achievable to start 2020 off right.