8,760 Hours to Change Your Life!
Why New Year’s resolutions fail and what to do about it.
Alas, the 2023 Holiday season is over. Our gluttonous behavior so horrid that we have guilted ourselves into making lofty resolutions to cover up past sins. All calories count moving forward and Jiminy Cricket will find little to complain about, so we tell ourselves.
For some, this means hitting the gym with regularity. For others, eat less, save more, or [insert goal here]. A new year means the opportunity for a new you. Most of the time, the ‘new you’ shows up as often as the TikTok addicted teenager to his shift at the local Taco Bell.
A recent study by the University of Scranton suggests that a mere 8% of people can white knuckle their New Year’s resolution into reality. Given how the average human responds to failure, it’s no surprise that many of us limit the opportunity to self-improve to once per year.
Expecting a tectonic shift in your behavior in 24 hours is not realistic. Sure, you can change something small, such as the passcode on your mobile, but even then you’re likely to slip up from time to time. How many times have you driven halfway to your office only to realize that you changed job roles and should be going to a different location? I hope I’m not the only one.
Sticking improvements are made incrementally, through goal setting, and accountability tracking. The first rule of resolving to improve is to always be open to healthy change, regardless of the date. Second, know your limits and find ways to strengthen them.
This is not to suggest that you shouldn’t tackle goals that push you outside your comfort zone, this is encouraged. Rather, shore up your weaknesses by coupling them with motivators. For example, if you struggle to go to the gym regularly, find a workout buddy. Struggle to save? Hire a financial advisor.
I am a champion for anyone attempting to improve their lives through positive change, in any way. However, my profession focuses on individuals’ financial health. This is where my expertise lies. For those of you who have resolved to improve their financial lives in 2024, here are a few pointers born from real life successes:
1. Set it and forget it. Don’t think too much about saving, just do it. If you cannot save at least 15% of your income, this means you spend too much and need to change what you spend or what you make.
2. Use your employer’s retirement plan. There’s a reason the IRS wants to deduct your tax liability at the payroll level! Out of sight, out of mind.
3. Use a financial planner. Having an effective financial accountability coach and strategist pays for itself. Yes, you do most of the work, but a gym trainer also doesn’t lift weights for you. Results matter.
4. Change takes time. There are 8,760 hours in the year, and you will need every one of them to improve incrementally.
5. Take care of your health. Financial planners are beginning to allocate more than $250,000 to retiree healthcare goals alone. This can be substantially reduced simply by living a healthy lifestyle. Cutting fructose out of your diet could save not only hundreds of thousands, but also your life.
The last rule of self-improvement is to have clear and measurable goals. In finance terms, this means having a financial plan. The term “financial plan” has been abused so frequently by the corporate marketing geniuses that most people misunderstand the concept.
A financial plan, in simple terms, is a record of your stated objectives and a measurable path to said objectives. This is not a complicated dissertation on your monetary proclivities and their effects on your local economy. A financial planner is just someone that can help you draft the most effective path forward and measure your progress.
Here’s to your 2024 goals, whatever they may be. Hopefully you achieve them, and hopefully we can be a part of them in some way. Thank you for reading Karat Stick and I look forward to the rest of the year with you!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Securities offered through LPL Financial LLC. Member FINRA/SIPC. Advisory Services offered by National Wealth Management Group LLC, an SEC Registered Investment Advisory and separate entity from LPL Financial LLC.