How to Keep Your Financial New Year’s Resolution

If you have made it through the first third of January and have stuck with your New Year’s resolution, you are either extraordinarily talented, or else you are no spring chicken. A lot of people make ambitious New Year’s resolutions on January 1, but when the champagne buzz fades or the hangover clears up, they soon fall back into their old habits. According to Cecilia Lallmann of the PBS Personal Finance website, more than three fifths of New Year’s resolutions are about money. This could be because people’s financial situation troubles them more than the problems that count for the other major categories of resolutions, such as health and interpersonal relationships. The success of your New Year’s resolution depends on things other than willpower; a lot of it comes down to the appropriateness of the resolution. In other words, it comes down to your understanding of personal finance and of your own values. If you made a financial New Year’s resolution that involves complex legal paperwork or about which you need professional advice, contact a Boca Raton debt lawyer.

Choose a Resolution You Really Want

Pursuing goals that other people set for you, or goals that you set for yourself because they are what other people want you to do, is exhausting. For example, you would set yourself up for failure if you tried to save to place a down payment on a house that, if you bought it, would make your parents stop insinuating that you are a loser. Likewise, if you resolve to stop using buy now pay later (BNPL) because your spouse complains about your BNPL purchases, even though you always make timely payments, and the hobbies you fund with them make you happy, sticking with your resolution will not feel like an accomplishment.

Be Honest With Yourself About Your Financial Situation

The hardest part of debt repayment New Year’s resolutions is being honest with yourself about how serious your debt problems are. For example, you might avoid looking at the big picture about your finances, quit your Dunkin’ Donuts habit, and put the money toward paying down your credit card debt. If you do this, you will have paid down some credit card debt by the end of the year, but your overall situation might still be a mess. You could have helped yourself more by deciding to file for bankruptcy or borrow a debt consolidation loan.

Track Your Small Victories

When trying to build a good habit, you should celebrate the small wins. With financial New Year’s resolutions, this does not mean splurging on an expensive meal or new shoes every time you make a credit card payment. It does mean texting a friend or sibling to rejoice that you have made your payments on time for as many consecutive pay periods as you have.

Work With a Debt Lawyer About Keeping Your Financial New Year’s Resolutions

A South Florida debt lawyer can help you set financial goals that fit your overall financial situation and your financial values.  Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.

Source:

pbs.org/newshour/economy/expert-tips-for-paying-down-debt-saving-for-retirement-and-other-financial-goals