January has flown by and we’re already into the final month of summer – a good time to assess how we are going with those well-intentioned new year’s resolutions made five weeks ago.
Most Australians set at least one resolution at the beginning of each new year. This may not be a surprise, since countless global studies have proven goals to be one of the most effective ways of forming good habits and improving wellbeing.
In particular, when using a milestone event such as the new year, a birthday or holiday, people are nearly 1.5 times more likely to commit to a new goal because these moments feel more meaningful and impactful.
Financial advisors at the ANZ bank, however, have found that most new year resolutions often fail to last beyond March. Here are four proven and helpful strategies they suggest you can use to increase your chances of forming good financial habits.
1. Break down goals into smaller goals. Celebrating smaller accomplishments more frequently increases your motivation and makes a goal feel more achievable.
2. Regularly monitor progress. Periodically checking in on your progress towards a goal almost doubles the chances of achieving objectives.
3. Restrict your ability to deviate from your goal. Wherever possible, make acting on the goal effortless or automated. For example, tools like a ‘round up’ app or scheduled transfer on payday will allow a ‘hands off’ approach to saving, so you can put money aside before it can be spent elsewhere.
4. Share goals with friends, peers, or family. The positive influence of peers has shown to increase accountability and motivation to stay on track.
According to ANZ Head of Financial Wellbeing, Research and Design Mohamed Khalil, setting goals is an important step in creating lifelong financial wellbeing habits.
“Once formed, they require less conscious effort, making saving, paying down debt or managing your money an easier part of your day to day”, he says.
“Using a milestone event to set financial resolutions is a great way to get on track for 2024”, Khalil concluded.
