Ready to Quit Quitting? Top Financial Resolutions and Why They Fail.

We have all been there before.

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The clock is ticking down. The ball is getting ready to drop. You are eager with anticipation of a new year, a true fresh start. Maybe you purchased a new notebook or planner and some sparkly pens. Maybe you finally printed out all of those bank statements to really see where your money is going. This year is going to be YOUR year, and you've made sure of it.

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This week is statistically rough for those who set New Year's resolutions. January 10th is "Quitter's Day", and January 17th is "National Quit Your Resolutions Day." Ouch. That definitely isn't long enough to make lasting change, whether your goal is to improve your health, well-being or finances. You may have had the best intentions, but chances are your resolutions set you up to fail long before the clock struck midnight on January 1st.

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S.M.A.R.T. Goals are Really Smarter

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This is a common acronym. S.M.A.R.T. stands for:

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S: Specific

M: Measurable

A: Achievable

R: Relevant

T: Time-based

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In order for any goal to be successful, it must have these elements. Otherwise, the goal is too nebulous to keep your attention for long. This is especially true for goals related to money, where so many emotions and situations can get in the way of your success.

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We're going to dive into the top 10 resolutions I often hear from my financial coaching clients, and why they're not likely to succeed. Even if they aren't resolutions for a new year, these are common reasons people seek out coaching throughout the year. Each goal will then be restructured to make success more likely. Come along with me!

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Resolution #10: Save More Money

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Every single person I have ever met has had this goal at one point or another. While that may have been a bit of an overstatement, it's very common. However it is not enough. This goal is likely to fail for these reasons:

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• There is no amount set. How much do you need to save?

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• There is no "why". What is this money for? Emergencies, fun, a specific item?

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• There is no timeline. When do you need to reach your goal? 

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• There is no accountability. Who or what will hold you accountable when other spending temptations kick in?

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Taking those things into account, let's rewrite this goal: "I want to save $1,000 for an emergency fund by May 31st, 2025 by setting up automatic transfer of $200 from my paycheck to my savings account each month starting January 17th, 2025." There are a lot of words there, but you can see the S.M.A.R.T. goal in action! I would also suggest sharing this with your budget coach or another accountability partner and have them check in with you regularly on this goal.

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Another great way to save more money is to establish sinking funds in your budget. Check out this article on how they work!

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Resolution #9: Pay Down Credit Card Debt

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If you have been stressed about your credit card balances, you are not alone. This is a major reason clients book consultations with me. Every time they open up the statements and see interest charges, they feel hopeless. This goal is likely to fail for these reasons:

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• Which debt will you start with? There are many different ways to view debt repayment. Will you start with the highest interest rate, lowest balance, or most annoying card?

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• There is no amount. It helps to have a concrete number you plan to decrease your balances by.

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• There is no timeline. Do you have a 0% interest promotion that is running out soon? Setting a timeline ensures you can allocate the right amount of money from your budget each month towards this goal.

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• There is no prevention of future debt. If you throw as much money you can to pay off past debt, what will prevent you from racking up more debt? I suggest a solid savings account that is easy to access in case of emergency before making any extra debt payments.

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Taking those things into account, let's rewrite this goal: "I want to pay off my AMEX with a $1,200 balance by August 31st, 2025 by paying an extra $150 over the minimum each month starting January 1st, 2025." Deciding which debt to tackle first can be tricky, so I recommend writing out each debt's balance, interest rate, minimum payment and any promotions you are taking advantage of. This is one of the topics a budget coach can help with!

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Debt repayment is highly personal. Some people are bothered by it, others are unfazed. If you received a bonus at the end of the year or plan to, check out this article by our coach Darío to see some examples of how to put that money to work.

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Resolution #8: Spend Less on Dining Out

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This is a goal I have personally begun working on, and have always felt guilt around. It's too tempting to treat yourself to takeout after a long day of grocery shopping. For me, dining out is a social experience as well. However this goal is likely to fail for these reasons:

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• Do you know how much you spend usually? A major advantage to zero based budgeting is tracking each expense. My eyes were opened when I saw exactly how much I had wasted on dining out in 2024, it could have been an entire vacation!

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• What is your plan instead? Will you allow some dining out with a limit, or stick to cooking at home? What is your contingency plan on a rough day? Failing to plan is planning to fail.

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• This is not specific. Once you know what you spend on average, decide what you will allow yourself to spend (if any). I always suggest starting slow instead of cutting off a budget category entirely.

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Taking those things into account, let's rewrite this goal: "I want to reduce my dining out spending from $400 per month to $200 per month by weekly grocery shopping and meal planning by March 15th, 2025. The extra $600/month I will save will go towards my vacation in April." The only piece I would also add is a reward for reaching this goal, because it is a big adjustment!

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Feeling a bit lost with grocery shopping on a budget? I wrote this article just for you!

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Resolution #7: Buy a House and Stop Renting

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So you're ready to become a homeowner! Congratulations! But wait, are you ready? This goal is likely to fail for these reasons:

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• How much do you need? Do you plan to put 20% down on a home, or less? How much can you afford above the rent you are paying currently? This is a great time to take a hard look at your income vs. spending.

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• When will you move? A timeline will help you feel motivated to save. Saying no to that shopping spree or friend's trip will feel easier if you have a target in mind.

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• Do you know your expenses, and how they'll increase? Homeownership often comes with a slew of new expenses. Your utilities, taxes, and day-to-day expenses should all be prepared before any items go in boxes.

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Taking those things into account, let's rewrite this goal: "I want to purchase my first home in September 2025. I will need $10,000 for a down payment and $5,000 for additional expenses, so I will pick up extra hours at my job and sell items to earn an additional $1,700 per month." This is a lofty goal, so be sure to have some grace with your timeline or be willing to cut back on other expenses!

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Resolution #6: Add "No Spend" Days to My Week

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If you're still reeling at the numbers above, you may be tempted to just STOP spending. After all, spending is the problem, right? Not necessarily. "No spend" days are trendy, but they may not be the answer to your larger financial dreams. This goal is likely to fail for these reasons:

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• What counts as a necessity? Rules around these "no spend" days usually involve necessity vs. want. Be sure you are clear on what does and does not count as a necessity that could be purchased.

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• You are more likely to spend more on other days. When you cut something off drastically, it makes it feel more satisfying when you finally give in. Think of it as ignoring that huge chocolate cake in the fridge all week, and then binging on it during the weekend.

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• This is unlikely to create a lasting habit change. Instead of restricting yourself based on a calendar, get creative. Our budget coach Celia suggests finding the money elsewhere in your budget before spending it. For more about how a budget coach can support you, check out this great article she wrote.

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Taking those things into account, let's rewrite this goal: "I will have two no-spend days per week for three months. On these days I can only purchase necessities that I have listed with my budget coach. I will find the money elsewhere in my budget before spending on non-essential items." This one will be more successful with an accountability partner!

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Resolution #5: Start Saving for Retirement

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We all know you should save for retirement, but life is so expensive! The constant pressure of time "running out" lingers, so you get a goal to start saving. This goal is likely to fail for these reasons:

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• This goal is not specific enough. Could you start by increasing your contribution to the employer match, if they offer that perk?

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• Do you need new accounts? There are many retirement accounts that could benefit you. Consider meeting with a trusted financial advisor to review yours.

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• Can you live off of less income? Increasing contributions means less take-home pay. Do you have a good grip on your budget so you can spend less?

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While there's lots to consider here, it doesn't mean you can't begin saving for retirement. Taking those things into account, let's rewrite this goal: "I will begin to contribute 5% of my gross pay towards my 401k to get the employer match starting with my March 1st paycheck. I will prepare my budget to live with $X less per month to account for this." Remember to revisit this goal at least once per year to ensure your money is invested properly and you are contributing enough to meet your retirement goal!

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Resolution #4: Get on the Same Page as My Partner

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So you're ready to start a new financial initiative, but maybe your partner is less excited. This is very common, and a major source of conflict for couples everywhere. This goal is likely to fail for these reasons:

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• What will hold you accountable? There is no definition of "same page" here. Does this mean monthly budget meetings? Using the same tool? Limiting spending? Before starting, pick one area and get specific.

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• Which budgeting tool will you use? Be open to trying your partner's preferred method, or just being more flexible with how they use yours. Every couple I've worked with has had a type-A partner who does the work and a "sit back and watch" partner who spends but does not budget, and that's ok for many.

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• How will you handle conflict? It's inevitable, you will disagree with your partner at some point. Set up some guidelines for what to do when this happens. This is a great opportunity to bring in a neutral third party like a financial coach who can help mediate.

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Taking those things into account, let's rewrite this goal: "My partner and I will have monthly budget meetings on the last Saturday of each month starting in January. We will utilize MyBudgetCoach and agree to meet with our coach when we run into conflict we cannot resolve ourselves." Doesn't that feel better?

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Worried about your partner budgeting with you? Check out this article on what to do when your partner is not on the same page as you.

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Resolution #3: Max Out Retirement Contributions

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Maybe you've rocked the earlier goal of starting to save, and now you're ready to max out! The contribution limits for each year are easy to find, but this doesn't make the goal any easier. This goal is likely to fail for these reasons:

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• No specific amount or timeframe. The 2025 IRA contribution limit is $7,000 (source here). If you want to hit this goal by December, you will need to divide $7,000 by the months remaining in the year.

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• Is your budget ready for less income? Let's say you're a rockstar and want to start in January. That's about $583 per month you won't have to budget for regular expenses. Can you truly afford that? 

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• Do you have backup plan? Retirement accounts are tricky to access at a young age, so be sure you have regular savings before tackling this goal. Once that money is invested, consider it gone unless you want to pay taxes, fees and penalties to take it out before retirement.

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Taking those things into account, let's rewrite this goal: "I will max out my IRA in 2025 by putting $583 per month into that account starting in January." Like any of these goals, give yourself some grace if you aren't perfect in achieving this goal. Anything is better than nothing!

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Resolution #2: Start Investing My Money

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Many clients get their budget evaluated in order to find money to invest. While budget coaches do not offer investment advice, we can help you free up the money needed to reach this goal. However, this goal is likely to fail for these reasons:

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• What is your risk tolerance? If it's too painful to watch numbers rise and drop, you may want to assess different types of investments. A financial advisor can help with this. An alternative is putting your money into a high-yield savings account until you're ready to add it to a brokerage account. This way you earn more interest than usual without the risk.

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• Which accounts do you need? With technology, anyone can invest with just a few clicks. However that does not mean an account through a company like Robinhood or Acorns is right for you. Seek out an advisor to ensure your accounts match your overall goals.

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• Can you afford it? Just like the resolutions on retirement, be sure your daily budget can take the hit of less income.

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Taking those things into account, let's rewrite this goal: "I plan to free up $100 per month from canceled subscriptions to invest in my preferred investment account starting in February 2025." Taking money from one area is a great way to find "extra" money for goals like this!

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Resolution #1: Start Budgeting My Money

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Did you notice a trend with the resolutions above? They all require diligence with your money, and a budget helps with that! However, this goal is likely to fail for these reasons:

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• Which tool will you use? It may be a spreadsheet, notebook, or a fancy budgeting app, but you'll need to pick one at a time to try.

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• There is no "why" or reward. We all should budget, but why is it important to you? Make the work of budgeting worth it by setting a small goal around this, such as buying an item you've wanted.

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• No accountability. It's going to get tough. It just will. So what will happen when you want to fall off the wagon? That's where an accountability partner comes in. It may be a trusted friend or even your designated budget coach.

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Taking those things into account, let's rewrite this goal: "I will start using MyBudgetCoach on January 15th and set up my budget. I will save for a new Apple Watch as a reward and reach out to my coach Kristin if I get stuck or lose motivation." Was that a shameless plug? Yes, but any of our amazing coaches can do the same thing.

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Good news, we have a roster of coaches who are ready to help you with this goal! Sign up for a free 35-day trial here, you have nothing to lose!