Setting Goals for the New Year

Posted by: Henry B. | Jan 03,2008


Losing weight, quitting smoking, getting out of debt: those are some of the biggest New Year’s resolutions for the coming year.  That should tell you something – that people make resolutions every year and don’t stick to them.  My brother told me the other day, “I don’t make resolutions because it’s just setting yourself up for failure.”  Cheery guy!  But there’s some truth to that.  If you need to lose weight this year, chances are you wanted to lose weight last New Year’s and didn’t hold to your plan.  

So how exactly do you make good on your promise to yourself?  Losing weight or shedding debt both take the same approach: don’t get greedy.  If you say to yourself, “I’m going to lose 100 pounds in three months,” or “I’m going to get rid of $10,000 in credit card debt by April,” then, yes, you’re going to set yourself up for failure.  You’ve got to approach the year like you’re a small business – set up a business plan that outlines both the short and the long term.  

Sure, you can try to determine where you’d ideally like to be by the end of 08, but you should mostly emphasize where you will be realistically.  You might not get out of debt entirely by next year, that’s fine, so long as you are in a better situation than you are today.  Set realistic goals on a month by month basis.  By the time twelve months are on the books, you might be surprised by just how much progress you’ve made during the year.  

The idea is to set small goals.  Even if it’s something as small as putting an extra $50 towards your credit card bill every month, that is something.  If you haven’t created a detailed budget, now is the time.  Factor in every possible expense you spend in a typical month.  However, don’t generalize, itemize your spending for the month to determine how much you’re paying out.  One month you may spend more for gas, another more for food, and so on, so just making a general assessment is not adequate.  

You know the phenomenon “The Secret”?  I’m not going to get into if it works or not, but one thing “The Secret” mentions is putting up a picture of your dream home (or whatever you desire) as a constant reminder of what you aim to achieve.  The same process could be used for saving money.  Keep your budget and your debt-reduction goals easily accessible – some place you use every day, like the refrigerator.  That way you won’t forget about it and neglect your New Year’s resolutions come springtime.  

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