New Year’s resolutions can be easy to make, but hard to keep – especially without a plan in place. If your resolutions include financial goals, integrating simple habits into your daily routine to achieve them might be easier than you think. Here are steps you can take to make financial goals part of your daily routine, and why those steps matter.

Why Daily Habits Matter for Financial Success

Adding a new routine activity, no matter how big or small – into your already busy day might seem daunting. However, completing simple, achievable daily steps is one of the key actions you can take to reach your goals. This consistency will build discipline and confidence, and you will eventually consider these habits a “non-negotiable” part of your day. Furthermore, breaking a large goal into “bite-size” pieces can make that goal feel more attainable – as well as provide frequent checkpoints for tracking your progress.

Step 1: Clearly Define Your Goals and the Motivation Behind Them

An achievable goal is one that is clearly defined. A common framework for goalsetting is called SMART goals – which can help you create specific, measurable, achievable, relevant, and time-bound goals. Many goals fail because they are ambiguous, making it difficult to monitor progress and leaving you uncertain in how to achieve them. Additionally, goals can fail if they are clearly out of reach or you don’t have the means to achieve them given your current lifestyle. For example, if your goal is to save $1,000 a month but you only have $500 left after paying your monthly expenses – you might become discouraged from saving at all. SMART goals take uncertainty away to help ensure you cross the finish line.

If your goal is to pay off debt, you are more likely to have a successful outcome if it is structured as follows: “I will pay off $5,000 of credit card debt by December 31, 2026 by making a $208 payment plus interest every payday from the first payday of the year.” This goal is specific by mentioning the amount and type of debt, measurable every payday, and time-bound by setting a target payoff date. Click here to learn more about using SMART goals to achieve positive outcomes.

Another important part of setting goals is considering your why. Do you want to become debt free so you can purchase a home? Do you want to curb your impulse purchases to put more money toward your emergency fund? Your why will help you focus on the bigger picture.

Step 2: Personalize Your Routine with Daily, Weekly, and Monthly Habits

Personalizing your routine by creating daily, weekly, and monthly habits will make you more likely to reach your goals. Taking small actions in different frequencies will help make your goals feel attainable and easier for your current routine to accommodate new habits.

Let’s return to the financial goal of paying off $5,000 of credit card debt. A daily habit can be setting aside 5 minutes every morning to review your spending to ensure you’re on track to make your credit card payment. A weekly habit can be reviewing your budget to see if you have any upcoming expenses to plan for that could impact your debt repayment plan. A monthly habit can be reviewing your progress toward paying off the credit card – which gives you a chance to celebrate the progress you’ve made and stay motivated.

Step 3: Use Tools That Work for You

There are many tools out there claiming they will help you track your goals and create better money habits. While that may be true, the best tools to help you reach your goals are the ones you will actually use. If the thought of tracking your spending with a spreadsheet doesn’t excite you, deciding to use one might do more harm than good. Your success won’t necessarily come from a fancy budgeting app – it will come from the tools you use that make it easy to show up and work toward your goals every day.

Step 4: Automate When Possible

Automating your habits can help you make progress toward your goals even on the busy days. Back to the credit card example – setting up an automatic, recurring payment to your credit card can help make sure you never miss a payment.

Step 5: Hold Yourself Accountable, but Realize Progress isn’t Always Linear

Accountability is another important component of integrating financial goals into your routine. By checking in with yourself or a trusted individual, you can identify potential shortcomings early, come up with a plan to get back on track, and avoid shying away from uncomfortable conversations. Progress isn’t always linear – you might make great strides one week but fall short the next, and that’s okay! Be sure to celebrate your successes, and don’t be too hard on yourself if you don’t quite meet the mark one week.

If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties and one of your financial goals in the new year is joining a credit union – get started in one of our local branches today, or give us a call at 732.312.1500.

The First Financial team wishes you continued success in the new year!