6 strategies to achieve your financial resolutions this year

Each New Year, many set financial resolutions, like saving more, paying off debt, or tackling student loans. However, turning these goals into reality can be much more difficult than simply making a pledge. For many, resolutions often lose steam within the first few months. If you’re hoping to break this cycle and stick with the financial goals set for the year, here are six strategies to help keep the momentum going.

Set realistic financial resolutions for the New Year

To set up for success, it’s important to avoid overambitious goals that might be difficult to achieve. Transforming an entire financial situation in one year is unlikely, and setting overly lofty goals—like paying off all credit card debt at once—can lead to frustration.

A more practical approach can be to focus on paying off the credit card with the smallest balance first. Once that goal is achieved, another can be set to tackle the next highest balance. This step-by-step approach could be applied to other financial goals as well, such as saving for a home, paying off student loans, or building retirement savings. To keep goals realistic and achievable, the following may be some helpful tips to consider:

• Select a few goals that can have a big impact on your finances, such as setting up an emergency fund or opening a retirement account and committing to investing money into it regularly.
• Start with small adjustments to your spending habits instead of making drastic cuts that could be hard to maintain.
• Make your resolutions manageable and realistic and prioritize them.
• Set specific, measurable goals, like save $100 each month to put toward target.
• Acknowledge progress along the way. Meeting milestones, even small ones, will help keep you motivated.

Learn more about financial tips, products, and services

To make informed financial decisions, it's important to have a solid understanding of the strategies, services, and financial products available and how they can support personal goals. A good starting point is to follow trusted financial resources and read articles from reputable publications to stay informed about the latest trends and insights.

• Browse North American’s Plan for Tomorrow for financial tips about money management, retirement planning, life insurance, annuities, and much more.
• Find out more about products by visiting sites like the Consumer Financial Protection Bureau (CFPB). Its “Consumer Resources” section offers guides on important financial decisions like planning for retirement and buying a house and provides answers to questions about credit cards, mortgages, and auto loans.

Prepare finances for year ahead

Setting financial goals is an important first step but achieving them requires a clear plan for how to make each happen. For instance, if saving money is a priority, it’s essential to define a specific savings target, determine how much can be set aside each month, identify where the funds will come from, and plan how to avoid spending them elsewhere.

Creating a comprehensive plan that covers all these aspects is key to reaching financial goals and staying on track. Start by:

• Identifying the specific actions required to achieve each goal
• Developing a timeline for completing each action
• Executing each action step according to the plan
• Staying flexible and making changes if needed

Update a budget to meet money goals in the New Year

When setting new goals, it may be a good idea to adjust the budget to make room for these priorities. This involves reviewing current expenses to identify where adjustments can be made. Are there areas where spending can be cut back or reduced? What expense could be temporarily eliminated to support the goal? The key is to create a budget that accommodates the new goal while keeping overall finances balanced and under control.

Streamline savings with automated money management

When it comes to resolutions, having doubts about sticking to goals is pretty common. One effective way to ease this concern is by automating financial tasks. Research shows that people who automate their savings often save more than those who don’t. A simple approach is opening an online savings account and setting up automatic transfers each time a paycheck is received. Automatic deductions for things like 401(k) contributions or emergency fund savings can also be arranged to help stay on track with financial goals.

Automating money management tasks helps make sticking to savings goals and contributing to a retirement account more seamless, since the money is automatically deducted each month. This way, you can build savings without having to actively think about it, and it becomes money that’s less likely to be missed.

Get financial advice from trusted sources

Staying committed to resolutions can be tough but sharing them with others can make the journey easier. Enlisting the help of a friend or family member can help you stay accountable and offer extra motivation to keep progress on track. For those who may feel uneasy discussing financial topics, such as debt, with close friends or family, joining online communities can be a great alternative. Personal finance groups can provide a supportive environment to share goals, exchange advice, and connect with others facing similar challenges.

Another valuable addition to your support system is a financial professional. As an expert in money management, they understand that sticking to goals—whether it's a New Year's resolution or a long-term financial goal—can be challenging, especially without a clear plan. For example, if protecting loved ones is a priority, they can explain how life insurance can provide that security. If building guaranteed income for retirement is the goal, they might suggest incorporating annuities into the financial strategy. By working together, you can identify specific goals, navigate obstacles, and develop a personalized plan for turning your financial dreams into realistic results.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

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