As one year draws to an end, it’s common to make commitments that you hope will change your life for the better in the year ahead. From eating healthier to taking more exercise, you may have resolved to adopt life-enhancing habits and improve your lifestyle in the new year.
Although we don’t wish to burst your bubble, recent research from global healthcare firm Novo Nordisk found that 43% of adults give up on their new year resolutions before the end of January. According to the report, many of us drop resolutions because we:
- Lack motivation (41%)
- Let life get in the way (39%)
- Set an unattainable challenge (25%).
The good news is there may be a better way to achieve your goals.
The problem with new year’s resolutions
Have you ever struggled to get to sleep at night? If so, you may have found that the more you want to fall asleep, the less likely it becomes.
The same theory applies to keeping new year resolutions. Research published in Psychology Today reports that having a strong desire actually impairs your performance when it comes to completing demanding tasks.
In fact, the negative correlation between the strength of your desire and the success rate of your performance is even stronger when it comes to tasks that demand self-control, as is often the case with many new year resolutions.
In simple terms, putting huge pressure on yourself when you make and stick to new year resolutions mean you’re more likely to fail than succeed.
Focusing on your long-term goals could provide you with a better outcome
As financial planners, we’re not just here to help you generate returns on your money. Our role is to help you establish what it is you want to achieve with your life and put a plan in place to help you get there.
Typically, this plan will run for decades – throughout your working life and beyond.
Before we create a plan, we first need to work with you to define your goals.
After all, if neither you nor we know what you are saving for, why you need to protect yourself, and what your tax circumstances are, it’s hard to know where to start.
So, before we can create a financial plan, it’s important that you – and we – understand your long-term ambitions.
These might be to:
- Retire early
- Buy a second home
- Downsize later in life
- Reduce the amount of tax you pay
- Live a long and comfortable retirement
- Leave a legacy to family, friends, or causes you are passionate about
- Ensure your children or grandchildren can achieve all their life goals, such as going to university or buying a home.
Read more: Why life goals are crucial when plotting your financial plan
Instead of making resolutions that may not stick this January, take a longer-term view. Consider what you’d like to achieve in the future, and focus on how to attain that.
Doing so could help you sleep more soundly. It could also mean you wake up feeling rested rather than dreading an unattainable commitment you set just because it’s the new year.
Focus on your future self
Focusing on a long-term goal can make you more disciplined when it comes to your finances.
Ignoring short-term financial commitments and focusing on what you’d like to achieve in years to come can help you stay on track.
Of course, your plans might change along the way.
You may encounter changes that you have no control over. Whether influenced by others or a result of external events, adapting to change is easier if there’s no self-inflicted pressure weighing you down.
And, of course, your Ascenta financial planner will be right by your side. Whichever route you choose, we’ll be beside you through all of life’s ups and downs.
If you want to take control of your finances in 2026 or create a financial plan that supports your long-term goals, please get in touch.
