Trash Your Financial New Years Resolutions. Do This Instead!

Welcome back to We're Talking Money. I'm Phil Clark, founder and wealth advisor here at OmniStar Financial Group. If this is your first time, thank you. Just to let you know our mission, it's all about helping you take control of your financial life. We do it by uncovering blind spots so that you can make smarter decisions with your money.

Today we're going to dive into a topic that really trips up a lot of people. It's New Year's resolutions. But here's the twist: I'm here to tell you to forget about resolutions altogether. Instead, we're going to talk about something that works, and that's daily progress. This mindset can completely transform your financial future.

Every January, millions and millions of people commit to big goals like saving more money, paying off debt, or getting their financial house in order. But by the second Friday in January, generally, those goals or those resolutions are gone. Why is this? Resolutions, they can just feel overwhelming. New Year rolls in, you commit to a goal, you don't do any planning. No wonder it doesn't work. Without a good plan, you can forget about the success of a goal.

So let's flip that script. Instead of focusing on these massive year-long goals, let's focus on what I like to call the new day financial resolve. It's all about taking consistent small steps to build financial habits that actually stick, and that's the key.

Let's look at some of the reasons why traditional financial resolutions don't work. First, they're vague. Think about this: how many times have you said, "I want to save more"? Well, that's not specific, certainly not specific enough to guide action. They're too ambitious. Setting goals like "I'll save $220,000 this year," well, that sounds great, but without a realistic plan it can feel unattainable, especially if you get just a little bit behind. Resolutions, they rely on willpower. When unexpected expenses pop up, motivation goes out the window.

How do we make this better? Well, you can start by asking yourself better questions. Why do I want to achieve this financial goal? What has stopped me from succeeding in the past? What small, actionable step can I take today to move closer to my goal?

If your goal is to build an emergency fund, start with a bite-size target. Instead of trying to save 5 or $10,000 all at once, try committing to something that's more attainable: $50 a week.

Here's why the new day resolve approach works. First, it's realistic. Saving 10 or 20, 30, maybe even $50 a week, it feels more achievable. Remember, this is relative to your goals. If you can save more, great. Next, it's motivating. When you see progress, no matter how small, it can build confidence, and that creates momentum.

The same mindset, it can apply to other areas of your financial life. For example, if you're managing debt, say credit cards, try paying just a little bit extra on your balance, and don't wait. And before you know it, you'll have the debt paid off and you'll feel better. If you want to invest, you can start by setting up a small automated contribution, and you can do that with something as simple as a retirement account or a brokerage account.

If budgeting feels overwhelming, don't try it all at once. Do it one category at a time. Take dining out, for example. Start there. Track it for 30 days. The end of 30 days, add another category. It won't take long before you build this into a new habit, and it will help you take control of your money. Each small action, they compound over time, just like investments.

Every day is an opportunity to reflect and learn and take action. You need to be thinking about that every day. How do we do it? Well, I'm going to give you three questions that will keep it front and center. The first: what went well with your finances yesterday? The second is: what can you improve today? And the third: what's one financial task you can accomplish before you go to bed tonight? These daily reflections are powerful tools.

Building wealth isn't about making a grand declaration or waiting for the perfect time to start. The perfect time to start is now. What it is about is showing up consistently. The smallest actions, they can add up to really big actions. Norman Vincent Peale, he said, "Change your thoughts and you change your world."

What's one financial step that you can take today? Whether it's saving $10, cutting an unnecessary expense, an unused subscription, or simply reviewing your monthly budget, whatever it is, these small steps, one at a time, they can lead to really big results over the course of weeks and months. And within a year, you'll have a lot of great new habits, and you'll be in full control of your finances.

Hey, thanks for tuning in to We're Talking Money. If you found this video helpful, make sure to like, subscribe, and hit that notification bell so you never miss an episode. Here's to smarter money decisions in 2025 and your financial success. I'll see you next time on We're Talking Money.