The 5 Step Plan to Be One of the 10% Whose Resolutions Last

It’s the dawn of 2015 and if you’re like many, this is the year you resolve to get your finances in order. Whether that means spending less, saving more, paying down debt, sticking to a budget - or all of these things, new financial goals have been a top-three New Year’s resolution for the past decade. Unfortunately fewer than 10% of New Year pledges survive the year. In fact, most are toast by Valentine’s Day. But this year can be different. If you follow these five resolution rules, next year at this time you’ll be a resolution winner - and on stronger financial ground, too.

1. Get real. Full of resolve, we typically start off the year sure we can go forever without the spending pleasures we enjoyed just a week ago. But then real life takes hold. Big, bold, sweeping resolutions are set-ups for failure. Be realistic about your life and articulate goals that you can live with and achieve. For example, vowing to swear off something that you love (be it fine wine or Uber rides) isn’t a resolution that’s likely to last. Instead consider compromises that you can live with all year long such as trimming your wine budget by one-third or opting for public transportation during the work week and Ubering only on weekends.

2. Be specific. Now that you’ve got a realistic goal or two, create a specific, detailed action plan. For example, rather than saying you’ll save money, say that you’ll increase your retirement contribution by $1,200 a year. Or rather than saying you’ll spend less, say that you’ll cut $30 a week from your grocery bill or limit yourself to one Starbucks a week.

3. Make it tangible. Not doing something (like spending or eating) is far more difficult than doing something. We do better when we can take action. Therefore, activate your goals by doing things like writing them down or using tools that will help you see your progress. For example, apps and websites like mint.com can be set-up to automatically upload credit cards, loans, investments, property, savings and checking accounts so that you can see what you’re spending, set up a budget and track your progress. As a bonus, budgeting tools like mint.com can also help you to see your strengths and vulnerabilities so that you can be truly specific (see #2) about your goals.

4. Focus on the positive. Don’t shame or label your self in a negative way - such as a “problem spender” or “bad with money.” Shaming and negativity backfire by inspiring self-doubt and guilt, which sabotages the resolve necessary to implement your plan. Focus on the positive characteristics you have that will aid you instead - such as flexibility, eagerness to learn new habits, or wisdom. Speaking of wisdom, we do tend to get wiser with age. You might have once indeed been “bad with money” but you’re older and wiser now. Give yourself a break and the opportunity to see yourself in a new light.

5. Don’t expose yourself to temptation. If your downfall is the after work get-together at the local bar, suggest other activities like getting together at someone’s home. If shopping is the culprit, cut-off those email blasts and avoid the mall. Our resolve diminishes the more we’re forced to say “no,” so avoid situations where you have to choose. Similarly, wherever you can, set up automatic savings or contribution plans to avoid the temptation of spending before you save.

New Year’s resolutions are popular because they offer us an opportunity to jettison past baggage and see ourselves in a new light. Maintaining that advantage has everything to do with setting realistic, specific, actionable goals and arming yourself with new tools and a positive attitude.