5 ways to help make your financial resolutions a success

With the new year around the corner, many people have set their sights on new financial goals: saving more, paying off debt, or simply being more mindful of spending habits.

However, while intentions are often strong in January, maintaining that momentum can be tough — 13% of individuals who made resolutions in the past admit to not keeping any of them.¹ Letting those financial resolutions slip can have a ripple effect, impacting both immediate financial well-being and long-term security.

Don’t want to fall into bad habits? Here are five tips for sticking to New Year's financial resolutions.

1. Set clear and realistic goals

Setting clear financial goals is the cornerstone of any successful money management plan. Goals may provide a sense of direction and purpose, making it easier to stay motivated and track progress.

Some common New Year's financial resolution goals include:

• Saving more. Building a nest egg for a down payment, a dream vacation, or a rainy day.
• Sticking to a budget. Taking control of spending habits and allocating money more wisely.
• Starting a retirement fund. Planning for the future and securing financial stability in later years.
• Building an emergency savings fund. Preparing for unexpected expenses and avoiding financial hardship.

While it can be tempting to aim for the stars, setting realistic, smart goals for finance is key. For example, it might be overly ambitious to aim to save 50% of one's income while juggling a mortgage and student loans. Being unable to reach such goals can lead to feeling discouraged and maybe even abandoning the resolution altogether.

Instead of trying to overhaul one’s finances overnight, try starting small and building momentum over time.

2. Keep track of your money

Monitoring transactions can reveal a lot about spending habits and progress toward goals. Expense tracking may help individuals stay accountable and identify potential financial missteps before they become major setbacks.

When it comes to tracking money, there's are a range of tools to consider:

• Apps can automatically categorize transactions, complete with detailed spending breakdowns.
• Spreadsheets provide a customizable, visual way to track expenses.
• Online trackers offer a convenient way to monitor accounts from anywhere with an internet connection.
• Manual systems may be used by those who prefer a more hands-on approach.

3. Learn more about saving and building smart money habits

Knowledge is power, especially when it comes to personal finances. Taking the time to learn how to save money and understand fundamental financial concepts can help make those resolutions stick.

For instance, learning about compound interest can be eye opening. Seeing how small amounts can grow significantly over time might just be the inspiration needed to save more and rely less on credit.

From informative articles to helpful tools, there’s a trove of resources available online. Learn about PayPal Savings — it’s a secure and convenient way to grow money while working toward those financial resolutions.

4. Stay motivated to achieve your financial resolutions

Staying motivated is key to achieving any resolution, but it can be especially challenging when it comes to finances. It's easy to get sidetracked by unexpected expenses or lose steam when progress seems slow.

These strategies could be helpful for staying motivated to save money:

• Use visualization. Beyond tracking savings progress, take the time to imagine achieving those financial goals. Consider journaling or creating a vision board with images and affirmations of that dream vacation, a paid-off home, a child graduating from college, or early retirement.
• Set incentives for reaching milestones. These don't have to be extravagant — even small treats can make a difference. Just be sure to avoid derailing progress by overspending. Discipline and delayed gratification are still crucial for long-term success.

5. Automate your finances

Tracking expenses, paying bills, and resisting those tempting online sales may be overwhelming. Luckily, there’s a way to simplify the process and make it less time-consuming by using automation.

Here are some ways to automate personal finances:

• Saving. Use money-saving apps to schedule automatic transfers to a savings account each month, ensuring consistent progress toward savings goals.
• Bill payments. Use automation to manage bill payments and to help avoid late fees and the stress of remembering due dates.
• Budgeting. Apps can automatically categorize transactions and provide insights into spending habits, making it easier to track expenses and identify areas for improvement.

Making your financial resolutions a reality

Ready to implement these five strategies? It’s all about setting a clear course, tracking progress, and automating wherever possible.

But achieving financial resolutions should be a journey, not a destination. Stay committed, celebrate every milestone reached, and don't be afraid to adjust the plan as life events change.