Yahoo Finance Didn’t Meet Your Savings Resolutions in 2023? How To Bounce Back Without Regret
If you made promises around this time last year that you weren’t able to keep, don’t beat yourself up. You embarked on a mission with a 91% failure rate.
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According to the Ohio State University Fisher School of Business, research shows that only 9% of people see their New Year’s resolutions through to the end, with 23% giving up in less than a week and 43% throwing in the towel by the end of January.
The good news is that last year’s disappointments are in the history books. The new year brings a new chance to learn from the mistakes of 2023 and join the winning 9% in 2024. Although we’re about a month in, there’s still time to set things right.
Did last year get away from you and your savings goals? Here’s how to shelve your regrets and get back on the path to living your financial dreams.
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Take an Honest Inventory of What Went Wrong
Don’t dwell on last year’s shortcomings, but do analyze what contributed to them.
“First, figure out why you didn’t achieve your 2023 resolutions,” said Kyle Enright, president of lending at Achieve, a digital personal finance company. “Often, people make resolutions that are too big or too many, such as resolving to create and build an emergency fund, pay off debt and save a certain amount for retirement while losing weight and cutting down on coffee. It’s too much even for the most motivated person.”
Others might have made a resolution without supporting it with a realistic and flexible plan.
“For instance, you may resolve to create an emergency fund that covers at least six or nine months of basic expenses,” Enright said. “That can be overwhelming. Figure out a plan and start small, maybe saving even just $10 a week. If that’s going well after a couple of months, you can up the amount.”
Finally, it’s as important to adopt the right mindset as it is to choose the right tactics.
“Making any change is hard, and personal finance is no exception,” Enright said. “Accept that your resolution likely won’t be easy. While it doesn’t mean you must live in anguish, sticking to financial resolutions usually does require accepting some lifestyle changes, belt-tightening and commitment.”
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Give Your New Plan a Chance by Basing It on a Budget
Savings resolutions have something in common with those that pertain to debt, spending, investing and just about any other piece of the personal finance puzzle. If you don’t keep track of your income and expenses, they’re all doomed to fail.
“Examine your budget and spending habits,” said Harvard-trained economist, policy expert and best-selling author of the “Holistic Wealth” book series Keisha Blair. “Are there areas where you consistently overspent or overlooked? Adjust your budget accordingly, reallocating resources to align with your financial goals. Consider creating a realistic budget that accommodates both short-term needs and long-term aspirations.”
Get Precise and Zero In
Plans that are too broad are plans that you’re likely to abandon because they feel overwhelming. This year, drill into your savings goals more finely.
“If you didn’t achieve financial resolutions last year, it may be because you weren’t specific enough,” said Bethany Hickey, a personal finance expert and writer for Finder. “Get really granular with your 2024 New Year’s resolutions. Instead of just saying you want to save more money, include in your resolution a plan to achieve that goal, such as ‘save $1,200 in 2024 by putting away $50 per paycheck.'”
Shop Around for a Partner in Compounding
You picked a great time to focus on saving money. While the highest interest rates in more than 20 years are bad news for anyone borrowing cash from a bank, they can provide investment-level returns for those sending money in the other direction.
Most big, brand-name banks with brick-and-mortar branches and a national or global presence continue to pay a pittance for savings deposits. But some credit unions and online banks are offering rates over 5% — and if you park your money in a CD, you can get yields approaching 6%.
It’s a whole lot easier to compound your cash with those kinds of APYs than with the 0.01% that giants like Bank of America still pay their savers. Take advantage before rates drop, which analysts expect they will in 2024.
Finally, hit the ground running by scooping up a New Year’s bonus. Some banks are paying new customers up to $400 or thousands of airline miles for opening a savings account.
Pay For an Hour That Can Define Your Year
Finally, although you’re resolving to save money, you might want to start by spending a little on professional guidance. Devising a plan with a pro can give you the confidence and clarity you need to end 2024 among the 9% who will see their goals become achievements.
“Seeking advice from a financial advisor can provide a fresh perspective and renewed motivation,” said finance expert Josh Michaels, CEO and founder of Money4Loans.
Don’t worry. You’re not cutting someone a percentage of assets under management or paying for a retainer. According to Harness Wealth, the average financial advisor charges $120-$300 per hour, and that’s all it should take to put you on the path to a bulging savings account in 2024.
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This article originally appeared on GOBankingRates.com: Didn’t Meet Your Savings Resolutions in 2023? How To Bounce Back Without Regret
