Don't Let Your Financial Resolutions Fizzle

Welcome to The Woman CFO – a space crafted just for you, where we embark on a journey of financial empowerment.

In this today’s post, we'll explore why your financial New Year’s resolutions are losing steam, the importance of persisting, and practical steps to reignite that spark.

If you've felt the initial gusto of January slip away, it’s time to reclaim your financial narrative and turn those abandoned resolutions into sustainable habits that will carry you through the rest of the year and beyond.

Are you ready? Let’s go.

Instant Gratification Zone: Skip to the Good Stuff

• Understanding Why Resolutions Fail

• The Importance of Not Giving Up

• Finding the Motivation to Keep Going

• 8 Practical Steps when Restarting Resolutions

Goals are Goals... Until They're Not

When the clock strikes midnight, signaling the new year, the air is filled with resolutions, aspirations, and the promise of positive change. January, then, becomes a month of fresh starts - marked by a surge of enthusiasm and a cascade of well-intentioned goals.

But… as the month progresses, the initial zeal tends to wane, and by February, many resolutions are left by the wayside.

And… if your resolutions were related to your finances…

And… you’ve suddenly found yourself in this familiar scenario…

You’re not alone. Because, for women, navigating the complex landscape of personal finance can be uniquely challenging.

The pressure to uphold financial resolutions can be overwhelming and it’s not uncommon to see the initial burst of determination to save, invest, or pay off debt lose momentum as the reality of daily life sets in.

But here's the good news: resolutions may have a tendency to fade in January, but February offers a second chance.

It’s a moment to hit the reset button and recommit to the financial goals that truly matter.

Understanding Why Resolutions Fail: The January Hurdle

As New Year's celebrations fade into memory, a common pattern emerges: January, the month of fresh starts and resolutions!

But by mid-January, a significant number of resolutions have already been abandoned. In fact, the pattern is so persistent that the second Friday in January is known as “Quitter's Day” - the day when people are most likely to throw in the towel on their resolutions.

For women who set financial resolutions, the demands of juggling career, family, and personal well-being often leave little room for sustained focus, and by mid-January, the resolutions are tossed in the recycle bin for next year. Let’s look at why this happens:

Unrealistic Expectations

One common reason resolutions crumble is the tendency to set lofty, sometimes unattainable, goals.

The desire for swift and substantial change can sometimes lead to goals that are more challenging to sustain than they are to achieve.

For instance, aiming to save 50% of your income might sound commendable, but it's not always feasible when confronted with the realities of everyday expenses. Or, the lofty goal of eliminating all discretionary spending overnight can set anyone up for disappointment.

Money Tip: Consider re-framing your financial objectives into smaller, achievable milestones. Instead of vowing to save a large sum, aim for a realistic percentage of your income.

Lack of Planning

Without a roadmap, financial resolutions risk becoming mere aspirations.

Think of it as setting off on a journey without a destination – you may travel, but reaching your intended endpoint becomes uncertain.

As a woman navigating the intricate tapestry of personal and professional life, crafting a comprehensive financial plan may seem daunting. However, breaking it down into manageable steps can make the process less overwhelming.

Money Tip: Consider seeking guidance from financial experts or using online tools to create a realistic budget and set achievable financial goals.

Unexpected Setbacks

Life is unpredictable, and unforeseen challenges can throw even the most well-intentioned resolutions off course.

A sudden medical expense, home repair, or unexpected job loss can shake the foundations of financial plans.

Women, often the primary caregivers and decision-makers in their households, may encounter unique challenges. For instance, the wage gap and career interruptions for caregiving can impact long-term financial stability.

Understanding that setbacks are a natural part of the financial journey can help in navigating these obstacles without derailing your overall progress. By acknowledging these common pitfalls, we pave the way for a more realistic and sustainable approach to financial resolutions.

The Societal Pressure Factor

Societal expectations can cast a shadow on our financial aspirations.

It's not uncommon for women to feel pressured to conform to societal norms, whether it's the perceived need for an extravagant lifestyle or the belief that talking openly about money is taboo.

These external pressures can inadvertently sabotage the best-laid financial plans.

The Importance of Not Giving Up

In the pursuit of financial goals, setbacks are as common as coffee in the morning routine.

The initial gusto of January might have faded, and you might be wondering if it's worth the effort to pick up where you left off.

Let's hit pause for a moment and look at why it's important not to throw in the towel when it comes to your financial resolutions.

Financial Stability: The Pillar of Well-Being

As women, we wear many hats - career professionals, caregivers, homemakers - and the demands on our time and energy are endless.

Amidst these responsibilities, achieving financial stability isn't just a goal; it's a cornerstone for overall well-being.

It isn't just about numbers on a bank statement; it's about gaining the peace of mind that comes with knowing you're in control of your financial destiny.

Psychological and Emotional Rewards: Beyond the Dollar Signs

Money matters, but the impact of financial well-being transcends mere dollars and cents.

Think about the last time you achieved a financial milestone, whether it was paying off a credit card or reaching a savings target.

Remember the sense of accomplishment and empowerment? These emotional rewards are crucial aspects of our financial journey, and they contribute significantly to our overall happiness.

Breaking the Taboo: Normalizing Women's Financial Success

In society, conversations around money and success often carry a gendered undertone.

Breaking through these barriers is not just about personal achievement; it's about shattering the glass ceiling that has restricted women in financial domains.

By persisting in our financial goals, we contribute to a broader narrative of women's financial success, challenging stereotypes and normalizing the idea that women can be financially savvy leaders in their own right.

The Ripple Effect: Impact on Family and Community

Our financial decisions don't occur in a vacuum; they send ripples through our families and communities.

When women take charge of their financial futures, the positive effects extend beyond individual well-being. Families thrive, and communities benefit - whether it's providing a solid educational foundation for our children or supporting local businesses.

Finding the Motivation to Keep Going

In the whirlwind of everyday responsibilities, it's easy for the initial motivation behind your financial resolutions to get lost in the shuffle.

But here's the truth: your financial well-being is not just a box to tick off on a to-do list; it's a powerful tool that can shape the life you envision.

Let's take a moment to talk about the fuel that can keep the engine of your resolutions running – motivation. Here are 4 good motivators.

Motivator 1: Look at Real Stories of Success

It's important to hear from women who have faced financial challenges and emerged victorious because knowing that others have conquered similar hurdles can be a powerful source of inspiration.

Motivation 2: Understand the Impact of Financial Well-being on Life Satisfaction

There is a strong correlation between financial well-being and overall life satisfaction; and women who actively manage their finances tend to report increased life satisfaction compared to those who didn't.

Remember: This isn't just about money; it's about the sense of control and security that effective financial management provides.

And by visualizing the broader impact of financial stability, we can find motivation beyond the numbers on our bank statements.

Motivator 3: Visualize Your Ideal Financial Future

Take a moment to envision your ideal financial future – a home, a comfortable retirement, or the ability to support causes close to your heart.

This is more than daydreaming; this is a powerful tool to align your actions with your aspirations.

Consider creating a vision board or a digital collage with images representing your financial goals. Place it somewhere visible – a daily reminder of why you started this journey.

Each time you see it, let it reignite the passion you felt when setting those resolutions in the first place.

Motivator 4: Have a Support Network

The journey to financial stability doesn't have to be a solo mission. Surrounding yourself with a support network can greatly impact your motivation.

Share your financial goals with friends, family, or join online communities where women uplift each other in their financial journeys. Because having a support system significantly increases the likelihood of sticking to financial resolutions.

8 Practical Steps when Restarting Resolutions

Now that February has arrived, it's the opportune time to hit the reset button on your financial goals.

By incorporating these 8 practical steps, you won’t just restart; you'll fortify your financial resilience.

But, remember, it's not about the size of the leap but the consistency of the steps you take.

Step 1. Reflect on Your Goals

Begin by revisiting your initial resolutions. Take a moment to reflect on why these goals are important to you.

Whether it's building an emergency fund, paying off debt, or investing for the future, it’s important to revisit the 'why' behind your goals.

Take Action: Consider starting a journal; this simple act of writing down your goals can make your aspirations feel more tangible and real.

Step 2. Habit Formation and Consistency

Studies have shown that it takes an average of 66 days to form a new habit.

Instead of overwhelming yourself with grandiose financial plans, start small. For example, committing to saving a small percentage of your income each month may seem minor, but cumulatively, it could lead to substantial financial growth.

Take Action: Consistency in small actions can lead to significant changes over time.

Step 3. Assess and Adjust

Life is dynamic and your financial plan should be too.

Evaluate your current financial situation and make any necessary adjustments to your goals. Unexpected expenses, changes in income, or shifts in priorities can all impact your financial landscape.

Take Action: Be flexible and willing to adapt your plan accordingly. Setting rigid, unchangeable goals will set you up for frustration and failure.

Step 4. Break It Down

Large, daunting goals can be overwhelming.

Break them down into smaller, more achievable tasks. For example, if your aim is to pay off a significant credit card balance, set monthly milestones.

Take Action: Celebrate each small victory along the way to keep yourself motivated.

Step 5. Build a Support System

Building a support system not only provides encouragement but also holds you accountable.

Connect with like-minded individuals or join women-centric financial communities online or locally. Share your financial journey with friends, family, or trusted mentors.

Take Action: Discussing financial goals openly helps demystify the process and might even inspire others to embark on their own financial journeys.

Step 6. Leverage Technology

Take advantage of financial apps and tools that can simplify the process.

Budgeting apps, investment platforms, and expense trackers can help streamline your financial management, making it more accessible and less time-consuming.

Take Action: Make good use of technology available to you. Most are free and may be available to you with normal use of your banking accounts.

Step 7. Educational Empowerment

Knowledge is power, especially when it comes to personal finance.

Equip yourself with the necessary financial literacy to make informed decisions. Attend workshops, read books, or follow reputable financial blogs catering to women.

Take Action: The more you understand your finances, the more empowered and confident you'll feel in steering your financial ship through the waves of economic changes.

Step 8. Celebrate Milestones and Learn from Setbacks

Acknowledge and celebrate your financial achievements, no matter how small.

Did you successfully stick to your budget for a month? Treat yourself. Facing a setback? Use it as an opportunity to learn and adjust your strategy.

Take Action: Every twist and turn in your financial journey is a chance for growth. Remember, it's not about perfection; it's about progress.

And Finally...

Remember that your financial journey is a marathon, not a sprint.

Small steps lead to big transformations, and you are laying the foundation for a future where financial empowerment is not just a goal but a reality.

Celebrate the small victories – whether it's consistently saving a percentage of your income, paying off a credit card, or making informed investment decisions.

Lastly, financial well-being is not about perfection; it's about progress. Continue to educate yourself, seek guidance when needed, and surround yourself with a supportive community. Your journey is uniquely yours. Make sure it's worth every step.

Ready to embrace your inner CFO? Join our community. Share your financial goals, budgeting tips, and success stories in the comments.