In-depth guide: The bitter truth behind New Year resolutions
The answer to realising your financial resolutions as the New Year progresses.
14:57 07 January 2015
Thousands of Britons were surveyed to learn more about their resolutions for the New Year and how they did last year. They all agreed that the first resolution is to clear all debts or save cash in 2015. If history is anything to go by, no more than 15% of the people who made the resolution will be successful in realising their goals. More so, almost 35% will abandon it before January ends.
So, how can you be sure to succeed? You need to have financial discipline. You must be financially educated to achieve the goal. It is not enough to read finance and business books. On top of reading, you also need to apply what you have read to know for yourself.
Are you sure that you do not have enough time? That only means that you will not have money either because time is money. Hence, it is time to invest in your brain, your greatest asset.
The pioneer of Ford Company, Henry Ford once uttered, “You can take all my belongings, cash, and other assets, and burn my home but I will recover all that in 5 years because of my knowledge”.
However, if you lost your business, assets or job, would you agree with his statement?
Millionaires are not called so because of the millions they have. They are millionaires because they have what it takes to accumulate cash consistently and effectively. The pounds they have managed to stack is due to their financial intelligence. Similarly, it is due to the application of different financial concepts that they understand and practice.
Almost 40% of the interviewees echoed that they had a lot to do. For such people, the resolutions were of less importance and they could not focus on their goals. 33% said that lack of commitment led them to break their resolutions. It is evident that such individuals knew why they could not stick to the resolutions but why the lack of commitment?
Staying dedicated to anything can be monotonous because you have to involve much effort, time, brain work, as well as, consistent action. To some individuals, the rewards of achieving financial objectives are not worth the continuous commitment. Such people start making excuses and doubt or ask some questions in the form of the following statements. “Is an ISA worth it?” “Can I save for retirement?” “Why should I settle my credit card debts because I have messed up credit?”
As you make resolutions for the New Year, ensure that you feel enthusiastic about them. That way, you can go the extra mile to taste success regardless of the circumstances. You should also keep reminding yourself about your written objectives every day. Though it sounds ridiculous, it is important to help you focus. You will realise that the focus will ignite your financial spark and you can move towards financial achievement.
An alternative solution would be to create challenging yet reasonable financial objectives. Do not suffer from stress and depression because you want to establish a business in 4 months when you lack startup capital or a sound business plan. Instead, make a checklist for your weekly and monthly ideas to enable you transition into the business. The idea is to develop habits of entrepreneurs and millionaires. However, learning the habits takes time but you will have developed entrepreneur-ish endurance once you develop the habit.
Many individuals resign from their jobs and go through a lot of pressure in the early phase of their careers. However, they fail and have to go back to being employees. It is advisable to move gradually and break down major financial objectives then create smaller actions to achieve them either weekly or monthly. If you are still not committed, find a mentor, partner or financial coaching to help you become accountable for your deeds.
Keep in mind that people become financial failures for two reasons. They might lack financial education to accumulate wealth. They might also have knowledge but fail to apply it in their finances.