Money Resolutions That Stick: Set Three Small Goals and Check Them Monthly

By February most resolutions are gone. Not because you lack willpower, but because the goal was too vague, too big or had nothing to remind you.

Here is a simple way to make three money resolutions that last the year.

Why do money resolutions fail?

• Too vague. “Save more” has no finish line.
• Too many. Ten goals mean none gets attention.
• Too big. An impossible target is abandoned on the first slip.
• No system. Relying on memory or willpower.

How do you choose three money resolutions?

Pick one from each group:

Make each goal specific, measurable and dated. “Save R100 a week” is better than “save more”.

Here is a hypothetical example. R250 a month for four months builds R1,000 by the end of April. That is a goal you can see in a bank balance.

How do you make them automatic?

• Set up a debit order on payday for your saving goal.
• Create a separate account or pot for each goal.
• Set reminders for things like checking your credit report.
• Write the goals on a note you will see.
• Tell one person who will ask how it is going.

See emergency fund and free credit reports.

What could a year of money resolutions look like?

This is only a guide. The point is that each goal has a date and a next step, so it never depends on a burst of motivation.

What should you check each month?

A five-minute review on payday:

1. Did the money move?
2. How much do I have so far?
3. What got in the way?
4. What do I change next month?

If you miss a month, do not abandon the plan. Add the missed amount to the next month if you can, or extend the date.

How big should the amounts be?

Small enough to survive a bad month. R100 that you keep paying beats R1,000 you stop after two months. Increase it when you can. See how to save money and financial goals.

What about debt resolutions?

If you have many debts, start with one and pay the most costly first. See debt consolidation and what to do when you cannot pay your debts. Check any credit provider on the National Credit Regulator register before you sign.

What if January is already tight?

Make the goals for later in the year, and start with a very small step, such as R50 on payday.

A tiny habit started now beats a big plan you postpone until you feel ready, and the amount can grow as your pay catches up. See Januworry survival.

What does a one-page resolution plan look like?

A resolution survives when it fits on one page. Here is a hypothetical plan with three goals, each with a number, a date and a monthly step.

The plan costs R550 a month for the first four months, and R300 for the next four. If that is too much, change the dates, not the goals. Write it on a card, and put it where you will see it.

How do you keep resolutions alive past February?

Most resolutions fade because nothing reminds you and nothing rewards you. Five tactics help.

1. Attach it to something you already do. Move the money on the same day you are paid.
2. Use reminders. A repeating note on the first of every month works.
3. Track a streak. Mark each month you complete the step on a calendar.
4. Tell someone. A friend or partner who asks about progress is a gentle push.
5. Reward milestones. Celebrate the first R500 with something small that costs little.

Money resolutions are habits, and habits form through repetition more than through willpower.

What if you miss a month?

Missing one month is normal. Missing two in a row is how a habit stops. Use a simple rule: after a missed month, restart the next month, and add a small catch-up if you can. Do not wait for a perfect month to begin again.

If you keep missing, the amount is probably too big. Reduce it by half, keep the habit and raise it again when it feels easy. A R100 resolution that you keep beats a R500 one that you drop.

Look at your budget, and see whether a cost has crept up. See how to budget.

How can couples and families set money resolutions together?

Shared resolutions work when everyone has a say. Try this:

• Each person writes one goal, and the household chooses one shared goal.
• Agree the monthly amount and who sets up the debit order.
• Choose a day each month for a ten-minute check.
• Give children a small part, such as saving a little from pocket money.

A shared goal, such as a family emergency fund, is easier to keep when everyone sees it growing. See money as a couple for how to start the conversation.

What should you do at mid-year?

June is a good time to check. Look at each resolution, and ask three questions: am I on track, is the amount still right and do I need to change a date? Adjust, and keep going.

Our mid-year money check guide walks through it in half an hour. If you are behind, a small catch-up now is better than a large one in December.

What should you do in the first week of the year to start your money resolutions?

In the first week of January, do three small things. Open a separate account for your savings goal, set a debit order for the day after your first payday, and put a monthly reminder in your phone.

Then write your three money resolutions on a card and place it where you will see it. A small start in week one beats a big plan in week four.

Frequently asked questions