If you are planning on making financial New Year’s resolutions, do yourself a favour and make them measurable. When they are measurable, they are attainable.
The original of this was written in the late 2000’s. This advice predates app-based budgeting, buy-now-pay-later traps, and click-driven and FOMO spending. Despite those changes, the principle remains timeless: vague intentions don’t change financial outcomes. Measurable actions do.
Normal Resolutions
Here is a good example of some noble resolutions
- I will save more this year
- Pay down my mortgage
- Lose weight
- Take less advice from Social Media Influencers
I applaud you for these goals. However, how will you know whether you have succeeded? Without a tangible financial goal, you are doomed to failure.
Tangible Resolutions
More tangible versions of the same goals might be:
- The balance in my TFSA on Dec 31 this year will be 10% larger than on January 1 this year. This is very specific. You can even put actual values in there. Doing so makes it easier for you to monitor your goal.
- My mortgage principal will be $10,000 lower at the end of this year. The important thing is to set a tangible financial goal. How you do it is left open, but the goal is concrete.
- You can automate this goal, and make it easier. Setting up automatic over-payments on your online banking of $400 per pay (if paid bi-weekly) makes this resolution real.
- I will lose 60 pounds this year by going to the gym at least 150 times. Ideally, I will try to lose 5 pounds a month. Again, this is very concrete and easily monitored.
- In my case I am lucky as my office has a gym I can use for free. Still doesn’t work on the motivation aspect of it.
- Stop watching TikTok or Instagram to get your core financial advice. You cannot trust someone who is paid by a bank or credit card company. Their job is to keep you in your current financial miasma. Read books. Taking advice from a 22-year-old who is still financially wet behind the ears is not good. Find out what works for you!
Resolutions are excellent things (although you can set goals any day of the year), but they must be specific. Saying, "I will be a better person" is an admirable sentiment, but what does it mean, and how are you going to do this?
- Give more to charities?
- Being more positive in your life outlook? (again really hard to monitor this, unless you tell someone who can say, "You really are being a sour puss these days").
Make your goals and resolutions tangible and measurable and you are more likely to succeed. Also, remember to put your resolutions somewhere where you can be reminded about them.
- Set the background of your computer or tablet with them.
- Put them on your refrigerator?
- Tell your spouse. They will remind you.
Tangible goals shift your brain from hoping to doing. Saying “I’ll save more” feels good but has no teeth. Saying “I’ll add $200 per paycheque to my TFSA” creates accountability even if it hurts a lot.
Financial goals also benefit from visibility. Numbers written down, tracked monthly, or reviewed quarterly are harder to ignore. The act of measuring your progress keeps motivation alive long after January fantasies fades.
Finally, tangible goals allow for course correction. If life throws a curveball, you can adjust amounts without abandoning the goal entirely. That flexibility is what makes long-term success possible.
How to Make it Work?
- Goal-gradient effect: progress motivates continuation, wow that is a mouth full.
- Commitment bias: written goals stick better, but don't stay married to it, if it is obvious it isn't working.
- Automation bias: systems can beat willpower, most of the time.
- Present bias: measurable goals can reduce procrastination, but you know you as well.
Accountability effect is an important factor. This one calls for stoicism or good old-fashioned stick to itness.
All Those Happy New Years
Yes, for many years I have wished you a Happy New Year
- Happy New Year 2025 May this New Year find you safe and happy. 2024 was a year to remember for its turmoil, but find a way to make 2025 a better one. It’s time to get back to the gym and plan on staying out of debt. Enjoy the coming year! #Debt #NewYear #Resolution
- Happy New Year 2024! What will the year 2024 bring? Let's hope it is a Happy New Year, but there is potential for a great deal of upheaval in the coming year. #NewYear #Happy2024
- Happy New Year 2022 and #MoneyTalk recapped a lot of 2021 and hoped that 2022 was going to bring some hope.
- A happy new year for 2021 ? Well it started pretty grotty, but it might get better.
- I must have had an inkling about 2020, as I didn't wish you a Happy New Year to start things. Hopefully with this post I have helped make the year better?
- In 2019 I was too practical with Tangible Financial New Years Resolutions but still worthwhile thinking about it, eh?
- For Happy New Year 2018 I had a great photo of being stuck on the 401 during a snowstorm, and links to previous New Year Messages.
- 2017 I pointed out that you start paying CPP and EI again, so your net pay is going to be lower.
- 2016 Happy New Year, just didn't happen, not sure why, must have been having a grinchy holiday?
- 2015 Happy New Year and I included a really bad joke about it being the year of the RAM in the Chinese Calendar.
- 2014 Happy New Year again I pointed out that CPP and EI rates were increasing as well, I really am a kill joy.
- 2013 was a Happy New Year, a celebratory Sunday was the photo to start the year.
- 2012 I used to post best of Twitter posts, and it seems to have fallen on a Sunday as well.
- Merry New Year! It All Starts again was how 2011 started, and I included a bunch of resolutions in that article.
- 2010 New Year began with me in a new job, which was very nice, given I had been unemployed for a while.
- 2009 started a little bleak, in that I was unemployed, and was looking for a job, during a major economic crisis.
- Belated Happy and Prosperous New Year was how 2008 started, the economy was booming, employment was high, but there were hints of the systemic failure that was coming soon.
- Good Bye 2008, outlined the eventful year that it was for me. Things got better, but a lot didn't go right that year.
- A New Year Brings Tax Breaks? The tax breaks appeared in 2007 but later disappeared, unfortunately.
- Happy 2007 a quieter year, we hoped.
- 2006 I was still figuring out what this whole thing would be, but I showed signs of a ranting good time.
