If you’re like most Americans, you viewed the month of January as a new opportunity to tackle your goals with a clean, blank slate. The science behind why people do this is well documented. A 2014 study published in Management Science called this phenomenon the “fresh start effect,” which temporarily jolts motivation to accomplish our goals.
Unfortunately, that surge is short-lived, and many people fail to follow through with their desired financial outcomes. Fortunately, there are effective strategies you can use to fix your finances.
1. Focus and Narrow Down Your Goals
The aphorism of quality over quantity may be an old idiom, but it remains true.
Having clear, attainable goals that are specific, measurable and achievable is better than having a long list of unrealistic goals that you may forget. Put another way, sometimes, less is more.
A recent paper in the International Journal of Productivity and Performance Management detailed how individualizing goals and continually assessing them led to better outcomes and satisfaction. Conversely, the same paper found that overly difficult and unrealistic goals negatively affect performance while undermining motivation.
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2. Remember the ‘Why’
Why are you trying to fix your finances? Is it for retirement? That vacation you always wanted to take with your family? Your children’s tuition fees? These are key questions to consider when aiming to get a leg up on your finances.
There are no right and wrong answers — the “why” comes down to you. And it will keep going on days when you don’t want to.
3. Automate, Automate, Automate
Millions rely on willpower to navigate through the first few weeks and months of the new year. And millions fail.
Unfortunately, willpower rarely helps us achieve the results we want. However, automating your money into your savings or retirement accounts over time will nearly always outperform willpower. With automated savings, there is no internal friction in your mind as to whether you should save; it automatically happens.
4. Fix the Foundation
Behind every successful person lies a strong anchor that keeps life firm when the waves get rough.
Unexpected black-swan events can shake our world without a knock on the door, hence all the more reason to prioritize building an emergency savings fund for three to six months (ideally more, if you can afford it). Beyond that, having a plan to minimize debt is equally important, especially high-interest debt.
5. Have an Accountability Buddy
A 2020 analysis in the Journal of Applied Psychology demonstrated that individuals who shared their goals with someone they perceived as having higher status were more likely to follow through on those goals.
This results in greater incentive and self-monitoring of goals. Yet, it is important to note that simply sharing goals could create a false sense of progress.
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This article originally appeared on GOBankingRates.com: Failed Your 2026 Money Resolution? 5 Ways To Fix Your Finances Right Now
