How to Make Your New Year’s Resolutions Stick Print
Friday, 2nd January 2009 (by J.D.)This article is about Planning, Psychology, Real-Life, Self-Improvement
Yesterday a GRS reader named “P” pointed me to a New York Times article from Alex Williams, who writes that change isn’t easy. Williams notes that about 80% of those who make resolutions on New Year’s Day fall off the wagon by the middle of February.
The article isn’t as depressing as that opening might lead you to believe. It offers glimpses of why people fail to keep resolutions — and offers tips for how they can succeed.
How to make your resolutions stick
One of Williams’ interview subjects realizes that she’ll always want to engage in bad habits, but that in order to change, she needs to want the good habits more.
I agree.
I will always want to buy comic books, for example, but the key is to realize that other things are more important. I want the freedom to spend my time as I please. I don’t want to work at a job I hate just because I need to earn money for the latest comics. (Or videogames. Or books. Or clothes.) My time and my freedom are more important than having the latest issue of X-Men. By looking at things this way, I’m able to see that I control my money — money doesn’t control me.
Williams interviewed several experts for the article. One suggested four strategies “more likely to bring positive results” when trying to change:
- Think big. “Start with big changes, not small ones” in order to generate more immediate results.
- Fake it ’til you make it. Think and act like the person you want to be. This is a powerful technique. I’ve used it myself to deal with a lot of my fears.
- Reframe the situation. Think of it in a different way. For example, don’t say that you’re giving up shopping — say that you’re getting a divorce from debt. Then you “can look back at [your] old life as a romantic adventure, rather than a sinkhole of regret”.
- Get help. Don’t go it alone. If you want to make change, then find others who can support you, such as your family or friends — or the other readers at Get Rich Slowly.
The ultimate conclusion of the article, though, is to just do it. Another expert put it this way: “The only thing that convinces the brain that it is okay to change is to see it change.”
My goals for 2009
That being said, I’m still not making resolutions this year. I’m setting goals. This is my strategy for coping with the problem of change. When I set a goal, I don’t feel like I’m trying to convince myself to become somebody new. I’m just trying to achieve something that the current J.D. wants.
And I’m not going overboard, either. In his new book, The Power of Less, Leo Babauta writes: “Taking on many goals at once spreads out your available energy and motivation, so that you often run out of steam.” This is the reason that I’m limiting myself to three primary goals again in 2009:
- To save $5,000 for a new car. “About time,” many of you are saying. For nearly two years you’ve listened to me whine about my Ford Focus while pining for a Mini Cooper. Now that my consumer debt is gone and I’ve saved $10,000 for emergencies, I’ll take some time to save for the car. (I’d set this goal higher, but I want to be sure my other financial priorities are met too.)
- To ride in Cycle Oregon. This goal actually encompasses many sub-goals such as: lose 20 pounds, research and purchase an indoor bike trainer, get a professional bike fitting, etc. (Oh — and ride the damn bike!)
- To make better use of my time.
I know that third goal sounds nebulous. It’s not. I have a concrete plan inspired by The Power of Less and by a recent conversation with a friend. I’m dividing my time into Focus Days, Free Days, and Buffer Days. On each day, I’m pursuing Most Important Tasks. I’m making a few other little tweaks, too. Basically, I’m trying to design a time-management system that works the way I do.
I also plan to pursue several secondary objectives. I intend to:
- Teach myself about investing and about small-business accounting.
- Fully fund my retirement accounts.
- Finish my book proposal and sell my book.
- Optimize our insurance coverage.
- Repair the exterior of our home (siding, paint, gutters).
Believe it or not, some of those secondary goals seem more daunting than my primary goals! But the primary goals are the ones I feel most passionate about. They’re the ones that will keep me motivated.
Now it’s your turn. What are your goals (or resolutions) for 2009? What strategies will you use to make your resolutions stick?
Photo by Woodley Wonderworks.

RSS Feeds
Facebook
Twitter

January 2nd, 2009 at 5:35 am
2009 Goals.
Pay off Remaining 20k in Credit card debt by summer, start paying down Home Equity Line which is another 15k. Since I have changed the way I spend money this is very attainable considering the economic situation we are in. can’t forget the xtra pounds also, heh which I need to work on my eating habits.
January 2nd, 2009 at 5:36 am
My goal is to get my writing out there, to get published, and to just become “more” of a writer. How am I going to do that? By setting aside more quality time to simply write. Practice makes perfect…
January 2nd, 2009 at 5:39 am
In years past, I looked at every new day, week, month, etc. as a chance to start over so New Years was nothing special.
January 2nd, 2009 at 5:41 am
The other suggestion this article made, which parallels what many of the PF gurus advise is to act big first for the immediate results. This is the basis for the model of “eliminate the lowest balance debt first so that you can knock out one bill as soon as possible, and build momentum.”
As an engineer with an analytical mindset, this always bothered me because it ignores the interest rates, but I understand why it’s important and often yields better results.
The other tried and true method in personal finance that can help overcome the article’s depressing odds is automatic investing and saving, which has obviously been beaten into the ground here, and for good reason. When my wife and I got married, I had been on my own after college for two years. I knew all about the time value of money and compound interest and the importance of investing early. I just hadn’t done it yet. Since I was about to be deployed with the military, she took over bill paying and finances, etc., and said “Do you want to start TSP deductions from your pay?” I said, “Sure, why not?”
And since then I’ve undergone my personal finance “conversion,” and now I’m a zealot.
What we need is some sort of automatic system for other resolutions, like exercise. It should be a system where if you passively make no changes to the schedule/plan, then the desired outcome is basically achieved (automatic saving). The negative outcome can only come about by some specific action (if you want your 401k investment money at the end of the month, you have to go to HR, request the forms, fill it out, blah blah blah, who wants to do that, right?) The closest thing I can think of, let’s say in exercise, would be to maybe have a workout group or class scheduled where you have to call and cancel if you can’t make it.
January 2nd, 2009 at 5:45 am
I think New Years is “special” as a starting over point. It is at least a reference point to start and look back at how you did. It gives you a kick in the behind if you have a hard time getting going.
January 2nd, 2009 at 5:48 am
Our financial goals are as follows:
Pay off my student loans (approx. $4,000)
Open and fully fund a Roth IRA for me
Reduce our food budget and control eating out
Begin saving for larger home improvements
Increase general savings as well
Start a car fund (both our cars are old)
January 2nd, 2009 at 6:00 am
Destroy all credit card debt. Destroy.
January 2nd, 2009 at 6:16 am
I’m with J.D. in the respect that I don’t make “resolutions”. More specifically, I don’t see the point of waiting until a certain day to start taking action toward a desired goal; it is much easier to start immediately while the idea and emotion behind it are fresh. Rather than waste space here anyone can read my thinking in Forget New Years, Start Making Your Financial Resolutions Today.
My goals for 2009 are quite simple and non-specific at the moment. I plan to spend more time marketing and growing my business, strengthening my relationships with friends and family, and begin working toward my MBA while taking the CFP certification courses. Nothing too complicated or detailed, just some things that I haven’t been as motivated to do as I had been in the past.
January 2nd, 2009 at 6:26 am
My goal is to fully fund my IRA and help my community and surrounding area become more aware regarding personal finance and fitness (ambitious I know).
I read a book called Happier by Tal Ben Shahar. In the book he recommends creating rituals to be conducted at specific times for any goal or action you want to change and introducing no more that two or three goals at a time. The goal or change must be a deeply rooted value and the rituals must center on moving you closer to your goal. For example, each of us (or most of us) has a deeply rooted value of maintaining good hygiene, so we have created rituals of taking showers each morning or evening and brushing our teeth at specific times. This can be done with personal finance as well. Create rituals for reviewing your budget, contributing to an investment account, or paying bills. On my site as members are trying to change habits and create new ones and they have to find ways to incorporate the acts that will move them closer to their goals, or they will never realize them.
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
-Aristotle
January 2nd, 2009 at 6:29 am
Still no resolutions to give to any charities? That “fake it ’til you make it” principle works there, too–will you be a rich miser or a philanthropist?
January 2nd, 2009 at 7:00 am
My personal finance resolutions:
1. Refinance the house to a 15 or 20 year mortgage at the new low rates.
2. Save up to put in a yard.
3. Rebuild the emergency fund.
4. Save up four months of expenses.
(@Cindy: I think many of us already give to charity — I know I do…)
January 2nd, 2009 at 7:16 am
My goals for 2009:
– Exercise daily
– Write daily
– Keep the house cleaner
– Eat at home
– Develop my “blog as a business” plan
My big audacious wish is to attend Robert McKee’s Story seminar this year. This involves travel expenses.
@Cindy: It’s each individual’s choice whether or not to give to charities.
January 2nd, 2009 at 7:21 am
Interesting read. What I’m most interested in learning about is the concept of Focus Days, Free Days, and Buffer Days. What do they encompass and how do you use them?
January 2nd, 2009 at 7:25 am
Love the point ‘Fake it til you make it’! Wish you all the luck in the new year.
January 2nd, 2009 at 7:25 am
Be ready for my retirement in 2010:
Get my volunteer commitments in order
Find new things to cook and cook more regularly(started with a new- and successful- family recipe last night)
Read more- use computer and TV less
Walk more/exercise more
Think seriously about any paid work to be
done in retirement(if I want to consult with my current company-I need to let people know close to retirement)
January 2nd, 2009 at 7:30 am
I love biking. I have been frustrated by trainers until a couple years ago , I got a Schwinn recumbent indoor bike. I modified it by putting on clip in pedals to use with real bike shoes, and voila!, a bike that I can ride while reading the New Yorker. I made a deal with myself to do leisure magazine reading on the bike and watched the miles roll on….
January 2nd, 2009 at 7:31 am
@aartha: I totally agree with you. Everyday is a great day to start over. There’s no need to wait until New Years Day. I had to reset my life so many times in the past year.
@JD: Coaches and cheerleaders are super important. I don’t think I would have started training for the marathon without people supporting me. My biggest tip to stay motivated to train is to raise money for a cause or passion. I ran for Children’s Memorial Hospital for the marathon in honor of my cousin who past away when we were kids. For the Chicago Distance Classic Half Marathon, I ran in honor of my uncles who died from cancer a few years ago.
I also tried avoiding focusing solely on weight and used other indicators of health as goals. Although I only lost a couple of pounds for the marathon, I had a slimmer waistline, lower blood pressure, and better sleep.
Cycle Oregon looks like a wicked ride for a flatlander like me. I’m definitely gonna put that as a possible race for next year.
I’m excited to read about your training and I hope you stop by my personal website to follow my marathon training. Hopefully we can give each other motivation!
For the bike trainer, I’d hit up REI or a local bike shop. Become a coop member if you end up buying at REI. You’ll be getting 10% on your regular priced stuff and members end up getting 20% coupons throughout the year. They also have discounts for members for their bike shop services. I love REI <3. I heard it’s required to be a member if you live in Oregon or Washington.
–mark–
http://www.markemmanuel.com/
January 2nd, 2009 at 7:45 am
While it is true that any day you can start over, I think there is something important in the ritual of setting goals and action items for the year. Write them down, and check on them monthly or quarterly to determine what you need to recallibrate to achieve them by year’s end. If you know you can “start over” every day, then it becomes too easy to procrastinate.
My pf goals for 2009 are to start saving for our next car, automate charitable donations and certain targeted savings.
I also enjoyed Happier.
January 2nd, 2009 at 7:46 am
1) Improve Fitness
2) Improve Finances
3) Improve my Mind
I already run and lift weights, but I can do more, or get better at it. My diet isn’t horrible but it can be improved.
I paid off my credit cards last year but I still have an outstanding car loan (at a very poor rate, too) and not much money saved. This can be improved.
I love to read and learn at my own pace, but I need to focus on learning more than “trivial” things, and acquire “useful” knowledge.
Naturally there are subgoals to each major goal. These aren’t just for 2009. These were the same goals I had for 2008, as well. I think I did alright last year…but I can do better.
January 2nd, 2009 at 7:50 am
@J.D. once you get that bike trainer you might need some help staying motivated to use it as they can be very boring. This might help:
http://www.bicyclefrenzy.com/109/indoor-training-10-ways-to-fight-the-boredom/
January 2nd, 2009 at 7:50 am
JD, I love your blog and read it daily for motivation and inspiration. I was wondering if you could go into more detail about time management strategies. That topic intrigues me as I see it as a way to become more productive in many areas of my life.
January 2nd, 2009 at 8:04 am
JD: as a professional bike mechanic and active member of a bicycle-based NGO (and as a GRS reader) I must urge you to be careful about a bicycle purchase. Most people spend far too much on new bicycles or those listed online (i.e. eBay, Craigslist). You should check your local area to see if there are any programs similar to Bikes-Not-Bombs (Boston), Broadway Bicycle School (Cambridge, MA) or Recycle-A-Bicycle (NYC?) who can sell you a fully repaired classic bicycle and make alterations on the spot (i.e. stem length, seat position) along with suggestions about riding technique, address comfort issues, and offer helpful tips. In short, most people at small bicycle shops, whether they sell new or used bicycles, are a wealth of knowledge and are sympathetic to your needs — plus, we just really like bikes and love to talk bikes!
I can attest that a professional bicycle fitting is worthwhile if you plan on pursuing cycling for any great duration of time or distance. However, a few alterations made by any qualified bicycle mechanic will provide about 70-80% of feedback you will receive at a professional fitting.
My advice would be to visit several local shops that sell both new and used bicycles. Talk to a sales rep or mechanic. Explain your goals (i.e. will you also be commuting?). And be honest as this will allow the professional to set you up with one or more bicycles for a test ride. Find one that you love and, perhaps, loves you back. Ask about maintenance, and continue visiting the same shop or shops because mechanics love seeing the same bike every so often.
Oh, and to keep costs down stick with steel or aluminum frames and forks.
January 2nd, 2009 at 8:08 am
Honestly I do not have any resolutions at all. I also despise the fact that people find the need to wait till a specific day to try to start something or to make change. I try to set goals all the time and I am constantly challenging myself. I have tried to get my friends to follow in this and stop setting random resolutions just because they sound ideal. For example, many of my friends said they would quit smoking. So I asked them what resources are they using to help them or for what their strategy was. They all had no answer and right away I gave them a few links to solid websites. Chances are that if you have no plan and are not 100% convinced that the resolution is attainable, you won’t attain it.
January 2nd, 2009 at 8:16 am
@Tom (#22)
Thanks for the tips!
I already own a bike I like: a 1997 Bianchi Volpe. I’ve logged several thousand miles on it, though I’m by no means a bike nut. (I don’t actually know much about them.) My main concern right now is fit. I know that longer rides on the bike are uncomfortable, so I want to get a professional fitting. I know of a guy here in Portland that will do just that, so I need to make an appointment with him.
There are still a few months to go before it’s really good riding weather around here (too much rain!), so I’d like to get an indoor trainer. I need to research these.
January 2nd, 2009 at 8:22 am
My goals are not financially oriented, but have financial repercussions:
Focus on eating as many raw veggies in a day as I can bear. (increasing expenses slightly at the grocery store, to hopefully decrease expenses at doctor)
Move at least once a day, walk if pain level permits. (slightly increasing pain med usage temporarily until—hopefully one day—weight loss reduces pain as claimed by doctor)
Be more vigilant about the kids’ schedules. (efficiency measure)
Smile sincerely every time I’m annoyed. (fake it till you make it measure)
Talk less. MUCH less. (thus annoying others less)
January 2nd, 2009 at 8:30 am
I think we all set some sort of resolutions/goals WITHOUT any measurable attributes. How do you know you have accomplished the goal by just saying “improve such and such?” where’s the cut-off line? I think it’s important to set a target, a number, so we can evaluate ourselves at the end of the year. ‘Improve my time management’ can’t be measured. My goals are:
1) read at least 12 books
2) max my Roth IRA
3) learn spanish enough to travel south america
4) join a non-profit organization and be active
5) take GMAT and beat 680
6) buy & learn DSLR camera
January 2nd, 2009 at 8:56 am
I’m surprised at how vague people’s resolutions are. Perhaps one makes them vague so that it’s harder to fail? Like Joshua, I think it’s important to set defined and achievable goals. If you want to lose weight, determine how much. If you want to save, set a definite amount, etc.
January 2nd, 2009 at 8:59 am
My goals for 2009 are:
Game more with friends (table-top RPGs). I’d like to get a monthly game going, preferably a weekly one.
Lose 70lbs while getting back in shape.
Submit my writing places.
On the finance end of things, my main goal is to make some extra money towards our savings cushion. I’d like to make an extra 2000 from selling things, doing more freelance editing work, and possibly (if I can meet at least 50 of the 70lb loss goal) returning to modeling for extra cash.
I think, given past results, all of these are possible. And of course, I’d like to keep on with the positive changes I’ve already made in 2008.
January 2nd, 2009 at 9:06 am
It’s inspiring to see so many blogs to the subject of getting ones life goals set especially in the realm of finances. This area is a passion of mine and contrary to belief there are those of us that are not misers. Goals we identify are often areas that most concern us in our lives. Making just a few goals and making them attainable is the best way to achieve them. The secondary benefit will be building confidence in yourself knowing you can do it.
Personal finances are one of the most personal and private aspects of our lives and most often the most neglected. Cheers to you all, and I hope every ones goals will be attained. Here are my goals for this year;
- Spend more quality time with my wife who is my life partner and I love very much
- Finish my Accreditation in Financial Counseling (only 2 tests to take)
- Provide classes for families to be in control of their money and not let money control them
- Provide classes in investing and how easy it is to do successfully
- Lower my AGI by maxing contributions to my Thrift Savings Plan (Gov’t 401k equivalent)
- Put in at least 75% of allowable contributions to my Roth IRA
January 2nd, 2009 at 9:09 am
@Jane:
Not all goals are financial in nature so they cannot all be quantifiable. Besides, resolutions in themselves are vague, because most of them are set over an entire year. That is the reason I do not make resolutions. Why wait for a particular point in time to start, and why wait until the end of the year to evaluate the success?
@ Joshua:
The above is in answer to your query also, but I want to point out that even the goals you list aren’t as measurable as they could be. When do you want to achieve your IRa contribution and GMAT goals by: tomorrow? April? December 31? How much is enough knowledge to travel through South America: do you want to learn all of the different dialects? Do you know that some countries like Brazil have 2 national languages? (not trying to be a stickler, just trying to make a point!).
January 2nd, 2009 at 9:17 am
In 2009 it’s travel travel travel! We have a few family trips planned; a wedding reception in LA, my dad’s 60th bday in Houston, and taking my new husband to meet my grandmother in Montreal. My goal is to make these trips, as well as my annual dragonboat team trips, without debt, and also to start a serious travel fund for Ireland, Scotland, Australia, and New Zealand. We would love to visit at least one of those this year on top of everything else.
The dragonboat trips I’ve paid for the last 2 years without debt so I’m not worried about those. When we go to Houston we can stay with family and we should be able to find a reasonably cheap flight. There are sometimes cheap tickets for LA also, and we may be able to stay with friends. Montreal will be a challenge however. We are hoping for a strong US dollar (or weak Canadian). We’ll have to pay for a hotel, as my grandmother’s apartment is too small for all of us, unless my brother still has friends there who’d be willing to put us up. Also we’d like to see some of the city, as I haven’t been there since my teens, and that will cost a little bit. And I don’t expect to find cheap flights, but you never know.
January 2nd, 2009 at 9:20 am
So here goes, my own list of goals for 2009. Respectfully submitted to the public so that I am not “doing it alone”:
1. To repay $10,000 in consumer debt. I have been following the advice of the “All Your Worth” ladies. So far, so good. In 2008, I plugged all the leaks and paid down $3,000 in debt. It seriously helps to read this site when I’m feeling frustrated - GRS readers are doin’ it!
2. To lose 10 pounds. When I took on a second job, I quit exercising regularly. My pants got tight. To counter the tight pants & popping blouses syndrome, I’m training for the SF 1/2 Marathon in July. I’d like the running habit to stick.
3. To get a promotion. Today (?!?), I will submit my resume for the next job up on the food chain at my workplace. I’ll keep doing this until something sticks.
4. To edge a little closer to my dream job. I signed up for a writing seminar this month and aim to write at least one thoughtful post per week on my blog:
http://practicalenglishusage.blogspot.com/
Thanks, JD! That NYT article reminded of how great GRS has been in helping me to stick to my goals. I very, very much appreciate what you do here.
January 2nd, 2009 at 9:27 am
Here’s a list I wrote up the other day. Some of the items on it are a little out of context if you don’t know me, but you can probably figure out what they mean:
* Be happily married.
* Weigh under 180 again.
* Visit two new countries.
* Get the boat sailing.
* Pay off my car and Jaime’s student loan.
Like Joshua mentioned a couple posts back, I prefer goals that are measurable, so that you can tell when you’ve really achieved them. But, this isn’t always possible to do — my first goal is about my marriage. I realize that keeping people happy in a marriage requires work, and I put that goal there to remind myself that I can’t just let things coast and expect everything to be fine. It’s like driving a car around but never doing any maintenance — eventually it’s going to break down. Maybe you could have avoided it if you had just gotten regular oil changes.
Most of the rest are pretty easily measured. It’s a modest list. I sort of feel like I should be more ambitious, but at the same time, I’m mostly satisfied with my life, and I don’t feel like I need to make any huge changes. If next year ends up a lot like last year, that’s ok, 2008 was a good year for me.
January 2nd, 2009 at 9:28 am
JD-Good post. From my perspective I am not a fan of New Years Resolutions. I find that it is counterproductive to set arbitrary resolutions-goals-without the underlying system to implement them. In fact I just posted Stop Setting Yourself Up for Failure with New Years Resolutions covering this and offering an alternative.
Don’t get me wrong, I think having goals is vital to success. I just find that New Years Resolutions are done in such a way that they are almost destined for failure. And each failure builds upon the last and makes it harder to accomplish your goals.
I use New Years to review my progress, review my vision and goals, and to make sure I’m on track. Then again I do this several times a year!
January 2nd, 2009 at 9:34 am
I love your third resolution. Like you said, it sounds nebulous, but think it’s exactly what I should be doing too.
My other resolutions are very concrete - am going to add making better use of my time (with a bit of a different plan for how to do that) to my list.
January 2nd, 2009 at 9:46 am
Thank you for writing about Cycle Oregon. I just recently moved to Portland and hadn’t heard of it. I think you may have just inspired a 2009 goal for me.
January 2nd, 2009 at 9:48 am
“I want the freedom to spend my time as I please. I don’t want to work at a job I hate just because I need to earn money for the latest comics. (Or videogames. Or books. Or clothes.)”
Well J.D., you took the words right out of my mouth. Freedom from drudgery is why I care about my finances.
January 2nd, 2009 at 9:54 am
2009 goal:
GRADUATE!!
that is 100% of my focus.
January 2nd, 2009 at 10:00 am
Pay off half of my wife’s and I student loans.
Learn about investing.
Get a job after I graduate law school in May.
January 2nd, 2009 at 10:34 am
January First is a check in point for me. Last year I finally got my act together on a number of levels. So for the next year a continuation of existing goals.
Lose 40 more pounds and continue with my diet and excercise programs. I am 30 pounds down from January 1, 2008.
Pay off $25,000 in debt.
Get certified as a personal trainer. I have the books, now I just need to study.
Limit eating out to 3 times a week. This is my biggest financial challenge.
January 2nd, 2009 at 10:40 am
Pay off remaining debt including amount owed on car, start a new business that brings in at least $150 a month, re-establish web presence, finish recording album, lose 5% of body fat, ride in the STP.
Your site has been an inspiration to me, thanks!
January 2nd, 2009 at 10:57 am
Instead of 3 resolutions, or even 3 goals, I chose to write out the 3 words to guide 2009. My word phrases are:
Breathe
Reach out
Self-permission
January 2nd, 2009 at 11:07 am
Save an additional $3,000 to my currently $1,000 emergency fund.
January 2nd, 2009 at 12:37 pm
1. Pay off $7k Auto Loan (@ 7.00%)
2. Save $10k Emergency Fund
3. Become a licensed Customs Broker
4. Take 1 day-trip every month
5. Exercise M-F 6:00 am
January 2nd, 2009 at 1:08 pm
Not so convinced about the think big approach. I’d much rather have a few levels of goals to hit. If I always reach for the stars it might be depressing when/if I consistently fall short. Most people (for weigh loss as an example) have an ultimate goal of losing 100lbs, but might say lose 10lbs the first month and average 2lbs each week. those smaller goals can build confidence and drive to better results.
January 2nd, 2009 at 1:13 pm
I don’t really have super specific ones though my goals have been adjusting lately due to circumstances.
1) Save as much as I can for my future housing needs.
2) Pay as much of my student loan off. At 4.5% I am hesitant to pay it off too fast, though.
3) Move out of my parents’ house.
4) Learn to cook more things.
January 2nd, 2009 at 1:14 pm
My resolutions/goals:
1. Stop using the credit card except for getting gas.
2. Replace our front door and the two old windows in our living room.
3. Track finances closely for a couple of months, then start formally budgeting.
4. Along with #3, get my office organized.
I’ve gotten started on #1 by taking the card out of my wallet and stuffing it in a drawer in my office desk, and have started on #3 by taping a sheet of paper (old envelope, actually) to the wall with two columns, “expenses” and “income”. Every day I spend money, whether for groceries, gas, or bills, I put it under “expenses”, then keep a running total after each day. Same with income. Not much, but it’s a start.
January 2nd, 2009 at 1:19 pm
My husband and I sat down yesterday for our annual goal-setting session. I like the fact that we do it on the first day of a new year–it’s optimistic. In addition to writing the goals, this year we defined action steps to get us to those goals with progress checks every quarter. We made three categories for goals: financial, personal and health. To name just a couple, I want to read two American classics this year and two non-fiction books (I’m a diehard mystery buff so I tend to read mostly mysteries). After reading the personal allowance post, we decided to have a $25 a week personal allowance, and if we end up saving it, when it reaches $50 saved, put it in the bank in a special account.
January 2nd, 2009 at 1:30 pm
@thomas: I think it’s a great idea to have a big nasty and challenging goal to aim for. A person just has to understand that it takes smaller steps and mini goals to get there.
I started walking as my training for the Chicago Marathon. I registered for a few short races like a 5k, a couple of 10k, a half marathon, and an 8k before the marathon. Each of them were mini goals to the marathon.
My goal before my next race is to eliminate 5% pounds of my body weight (10.5lbs) , or lose 2 inches around my waist. That’s a realistic short term goal that helps me get to my ultimate long term goal.
@battra92: At that student loan rate, I wouldn’t pay it off too fast either. It depends on what opportunities and needs you have in your life. Plus, you get that small tax deduction on the interest of your student loan.
–mark–
http://www.markemmanuel.com/
January 2nd, 2009 at 1:37 pm
there is nothing wrong with the mini cooper.
however if you want reliability, i recommend the honda fit.
half the price and twice the reliability.
January 2nd, 2009 at 2:01 pm
This year, I’m about to refinance my house to a 5% 15Year mortgage. Sweet! Goals…
Pay off my car and thus have only mortgage and small 3.35% student loan debt. (And we love positive cash flow!)
Save up for and purchase a mattress with cash for a great nights sleep. (Practice makes perfect for sticking to this strategy for ALL major purchases.)
Lose at least 5 lbs each 4 months and hit “Normal” BMI (even if muscles make me better than normal body fat!)
January 2nd, 2009 at 2:32 pm
My goals are:
1. Co-write an article for publication with my husband in an ornithology journal. I entered data for two years and I’d like to get some closure.
2. Get passports for me and my children.
3. Keep building the emergency fund and throw whatever extra we can at our lot loan (an acre we bought next door for our privacy).
January 2nd, 2009 at 2:39 pm
Recommendations 2, 3, and 4 are great. Number 2 forces you to recognize that you’re working on a new skill or objective–and gets you over the hurdle of feeling odd, like a monkey, when focusing on a new objective. Number 3, reframing, has been shown to be immensely useful for looking at an objective differently, and identifying alternative resolutions. Number 4 is an admission of a significant reality–learning and changing are contact sports, usually not successful in isolation.
Sorry, but #1 won’t stand up to research scrutiny. I’m well aware that that is the conventional wisdom, but big goals create a number of major roadblocks. They take a lot of time to achieve when you’d like to see immediate results. They require a large skill set of their own to achieve them. And finally, they require you to confront large constraints to achieve them.
In contrast, research shows that Karl Weick’s theory of “small wins” is the best way to go to achieve large goals and gain advantage. It’s the steady application of the small advantage where it can have the greatest impact that improves the odds of your success. Weick builds his process upon an understanding of what’s difficult about the change and then introduces small changes to improve the rate of success.
January 2nd, 2009 at 2:45 pm
Thanks, Dan, for pointing that out. In my original draft of this post, I pointed out that I disagree with point #1, too. I’m very much a small steps kind of guy. I like “small wins”, which is why I break even my large goals down into smaller steps.
January 2nd, 2009 at 4:49 pm
JD - I have a good quality bike trainer you can have for $100, if you have some way to get it out of the Bay Area & up to your place (pay for shipping, get it a ride, etc. it’s bulky and heavy!). If you’re interested, let me know and I can email you more info. That’s definitely at least a 50% discount - I bought it from a coworker and am not using it enough.
January 2nd, 2009 at 4:59 pm
I love the ‘get a divorce from..’ concept. What a powerful way of framing a change!
I have some goals already, mainly a 3-week trip to the UK in April/May. I’m already on track to pay for it as I go, AND pay off the last of my student debt this year, so those goals are solid.
I’ve also decided to set aside 1% of my monthly income for charity - either to give as I go, or as a big year-end donation.
In addition:
I am getting a divorce from uncontrolled snacking. My goal is to lose a half pound per week until my trip, which is a total of 8 pounds.
I will walk to work (3 miles) no less than once per week.
January 2nd, 2009 at 5:05 pm
-My financial goals: 80-100% on the stock market (beat my 55% for this year)
-Obtain 2 more rental properties
-Pass my Medical Board Exams (#1 priority)
-Increase my network base
My main strategy to go about my goals is to usually pick a goal date and then work backwards and calculate the steps necessary to get to that ultimate goal. Its worked in the past. Also I usually stick my goals in sight in on a bathroom mirror where I can see them regularly.
Good luck to all with their goals!
January 2nd, 2009 at 5:20 pm
I usually go with a theme for the New Year. 2009 is the year of finances. I even started a blog to keep me on track.
1) Stay on track with my budget and debt payoff plan.
2) Not spend any money on credit cards.
3) Use my value fund to pay for: a trip to Hawaii, a trip out of the country (Costa Rica, SE Asia, or Ecuador), lots of ski days, and possibly climbing Mt. Rainier.
4) Continue making extra cash on eBay.
January 2nd, 2009 at 5:28 pm
Unfortunately, charitable giving is out the window for us this year…my resolution is to find a job before we lose the house.
January 2nd, 2009 at 6:11 pm
in 2008 I had no goals or resolutions, and managed to almost completely quit smoking (2-3 cigarettes all year) and get back into swing dancing and swimming for the first time in years for either.
Goals for 2009
Health:
Do not smoke even 1 cigarette the entire year
Follow medical protocol (sort of already started, need to get back on track)
Stick to dietary restrictions (started Dec 1 2008)
Exercise:
Swim 2 days a week Jan thru Feb
Swim 3 days a week Feb thru April
Swim 4 days a week May thru August
Bike ride 1 mile per day starting in March, and add 1 mile per month
Goal note: Bike ride to work/school is 2.5 miles
Money:
Put a minimum of $100 into savings every month
Have a $1000 savings fund by May 1 (currently have $160, will have another $500 Feb 2, plus $50 per paycheck).
Pay off consumer debt by November 1 (I THINK I will make it but this is actually one I will have to think about–I’m down $500 since November already though!)
Personal enrichment:
Participate in NaNoWriMo
Graduate from College
Stick with Swing dancing at least twice a month
Plant herbs and tomatoes and keep them growing all summer and fall
Read 1 book about goal-setting by February 1
So, some things are spread out, some things are just a “finish what I started” deal, and some are going to take some active work rather than passive work. I also just automated my debt payments, so that’s even more passive, and I just have to track my “change” from my checking account and deposit that at the end of every month.
January 2nd, 2009 at 7:17 pm
Great tips. My only resolution this year is to be a better Me Inside and Out. Which means: 1) Use my graphic design abilities to donate some work to local humane societies 2) Wear nicer clothes, do my hair, makeup, nails. I need to take care of myself better 3) Eat healthier 4) Scrimp less and enjoy life 5) Spoil friends and little sister 6)Keep apartment and office clean and organized 7) save up $10,000 for EF. I guess you can say almost anything you do fits into this resolution. In that way I really can’t fail
January 2nd, 2009 at 8:36 pm
Goals, not resolutions:
* Go for one week without drinking. Then go another. Lather, rinse, repeat (do NOT tell me to go to AA, not happening). I spent $1-200/mo on wine last year.
* Quit smoking by March 1
* Build personal website, decide on focus and marketability by Feb 1. I set this up at Dreamhost today: $10.74 for two years’ hosting including domain reg! But that deal ended today.
* Start using those kettlebells, easing into it this weekend
* Continue to put at least half my net pay per month into savings/brokerage account (I can do this because I am now debt-free, woot!), more as conditions permit
* Contingency plan by Feb 1 to determine course of action if my job is recessionized
* Fund Roth IRA for 2008 by April 1
* Make decision on whether to pursue CFP (cert. financial planner) program by March 1 (my current career is in a dying industry, need to take another fork in the road).
* Purge storage locker (included w/apt lease) again by July 1 in prep for Aug 31 move-out (if determined by contingency plan above; otherwise will stay put and negotiate lower rent).
January 2nd, 2009 at 9:25 pm
My goal was made CRYSTAL clear for me on January 1: make emergency savings a priority. I’ve been lackadaisically putting money away when I could, and gotten to about 2 months’ worth. On New Year’s Day, heading back from a (frugal! up until that very moment!) trip to Mount Hood, our car died. The tow truck took it to the nearest mechanic, which was closed due to the holiday. We checked into the Best Western across the street. Bright and early at 7:00 this morning, we headed over to the garage to talk to the mechanic … and discovered that a landslide had destroyed the garage and buried the keys we had put in the mechanic’s dropbox forever. Now, instead of a $100 trip, we have spent extra $ at a motel, $ to rent a car to get home, and because emergency services won’t let the tow service get near the site, we still don’t know how much it is going to be to fix the car. We do know that if the tow truck had left our car two spaces to the left, our car would have been buried along with several others.
So, 2009 is going to be the year to top off our emergency fund. Once and for all!
Gotta love Oregon. After that emergency fund is filled we are going to try to find an inexpensive car that can handle the weather here.
January 2nd, 2009 at 9:38 pm
2009 Goals:
Revisit our business plan and make the appropriate (if any) changes. 1/15/09
Add the credit card payment function on our website for future clients. 1/31/2009
Use tax refund to pay off wife’s $5000 credit card. 2/28/09
Fully fund the $10k EF (currently $5500). 6/30/2009
Pay off my $5000 credit line. 12/30/2009.
January 2nd, 2009 at 10:13 pm
@ JD #24
I am a bike nut and, as #17 says, hit up your local REI for a trainer because they provide me with one avenue of employment. If you are not racing, or not racing out of Cat 5 or 4, a magnetic trainer will do you just fine. If you have not already had you professional bicycle fitting appointment, I would recommend checking with your local bike guru to see if there are any used trainers floating about that s/he would encourage you to purchase.
Also, if any GRS people are ever in Boston, here is a link to the latest Boston BoldSprints event, though the next event will be held January 10, 2009:
http://www.blog.thesietch.org/wp-content/uploads/2008/12/boldsprints_flyer_logos_web.jpg
This event is where we make the most of old, junky trainers for fun competition at small bars in the Boston metro area.
January 3rd, 2009 at 7:12 am
Think big. “Start with big changes, not small ones” in order to generate more immediate results. …….. That does not work with me as the big changes are ones that make me get out of my comfort zone very quick, so I end up quitting early. If I use affirmations to change many small things I can get closer to the big things by sneaking up on them.
January 3rd, 2009 at 7:20 am
Primary goal: pay off credit card. It means some really horrendous pinching, when I’ve already been living frugally, but it’s what I really want.
#2: Eat better, take my vitamins most days (they tend to nauseate me).
#3: Back to the gym! Back to weights, now, not just the bike.
#3: Start unpacking.
#4: Get my papers together to revise last year’s return.
There are plenty of other things I need to do to improve my life, but if I can do these things, I can start to do more. I’m hoping for a healthy year with less pain (Peggy@25, I know how pain can screw up all the rest of the goals.)
January 3rd, 2009 at 7:57 am
Hey, La BellaDonna,
your vitamins might nauseate you because you are taking them on an empty stomach. Have you tried taking them after a meal?
As for my own goals this year:
- save $20,000
- do yoga stretches daily, if only for 20 minutes
And I’m sure others will occur to me as the year gets under way….
January 3rd, 2009 at 8:43 am
My goals are to –
* Establish a solid emergency fund ($5K) by April 30th. Inspired by the “Reframe the Situation” tip I changed the name of the account from “savings” to “emergency fund” to remind me every time I look at it why it’s so important. Small step, but I’m hoping it will be a game-changer for me.
* Investigate avenues for earning additional income and pursue 1-2 options by March.
* Dance salsa times a week (aka don’t be a couch potato)
* Learn the name of one new person a week (networking sounds scary, so this is how I will re frame it)
* Maintain at least a B average in my MBA program
I think that’s a good start. Thanks for providing me the motivation to get this down in writing!
January 3rd, 2009 at 9:22 pm
I like to use Indicators or Performance for setting and tracking my goals. They are short, specific and easy to track.
January 4th, 2009 at 12:43 am
Goals must be:
S - Specific
M - Measureable
A - Attainable
R - Realistic
T - Time-based
As with JD’s example:
Save $5000 by 12/31/2009.
It can be extended by saying “Transfer $420/month to High Yield Savings account”
I learned this from a Life Coach in Seattle.
Anway, my goals for this year are:
Major:
1. Pay down debt by $800/month. (Main focus this year)
2. Re-balance IRA investments.
3. Two trips to see family (Domestic US)
Minor:
1. Join a CSA Farm. (On waiting list now)
2. Start Square-Foot Gardening
3. Buy Nikon D90 (70% funded)
Challenge Goals:
(This is a new category this year. This is for projects that require additional resources than currently available to us).
1. Refinance rental property. (Low equity)
2. Create a second stream of income making at least $200/month.
3. Start a new blog. http://www.greencropcircles.com
(Note: SMART details are left out for a quick post)
-Charlotte
http://www.javafoto.com/wp
January 5th, 2009 at 9:54 am
I’ve been reading a lot about Carol Dweck and her ideas on the growth mindset. If you approach things as opportunities to grow rather than trying to pass a test, you’re more successful. See articles at NYT and SciAm.
January 5th, 2009 at 11:46 am
I just finished last year’s Resolution successfully– I drank no alcohol at all in 2008. None, nada, zilch.
It teaches you what it means to you. That’s one good reason to make them and stick to them.
One belief I have did help. It’s like the 80/20 rule– I believe 80% of the accomplishment of anything comes in the last 20% of the work. It’s purely ’cause most people don’t make it that far, so that’s where you out-do them.
January 5th, 2009 at 8:50 pm
I read that article and thought it was a much more nuanced look at resolutions than most. I’ve been thinking a lot about the difference between resolutions and goals. I like what you said about the pressure being off with a goal. For me, I like the pressure that setting a resolution brings. It goes along with the fake it ’til you make it tip. If I say I’m doing something, I’m doing it–even if it’s only been a couple of days. Anyway, I wrote more a slightly more eloquent defense of New Year’s Resolutions at my blog, where I’m tracking my many resolutions for the year. It can be read here: http://resolveed.wordpress.com/2009/01/05/in-defense-of-the-new-years-resolution/
January 6th, 2009 at 10:10 am
Goals for this year are:
Keep my GPA in school up
Continue working
Save as much money as possible
Use savings to start paying down debts
Try and attain a good internship for the summer
All pretty reasonable and make sense, so I don’t think it should be too hard to keep up with all that.
January 7th, 2009 at 3:19 pm
My goals for the New Year are to: have more free time (so that I can spend more quality time with friends and family), get back to consistent martial arts training, and an iron cross on the [gymnastics] rings.
I wrote up my own post about tips I’ll be using to help reach my New Years goals: http://www.theinternalarts.com/articles/johnny-kuo/2008/12/29/6-tips-new-years-resolution-success
I like the “fake it til you make it” tip. I hadn’t thought of that when I was coming up with my strategies. I’ll be adding that to my personal bag o’ tricks.
January 12th, 2009 at 1:55 pm
Hey J.D.,
I enjoy your site and when I ran across this I thought I’d pass it along. Its a great deal on a mini cooper and it might help you reach your yearly goal a little sooner…
Take care.
http://www.walmart.com/catalog/product.do?product_id=10050532&adid=1500000000000007082200