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Make a Resolution, Set a Goal, Form a Habit

Make a Resolution, Set a Goal, Form a Habit

Jan 03, 2024

Dwight Johnson Jr

Embarking on a journey towards financial success often starts with a resolution, evolves into setting specific goals, and ultimately relies on forming good habits. These three elements, while distinct, are interconnected steps in achieving and sustaining your financial objectives.

The Art of Making Resolutions and Setting Goals

Resolutions are firm decisions about what you will or won't do, marking the starting point of your financial journey. For instance, deciding to save more or reduce debt are typical resolutions. But resolutions often fade without the right mindset and plan.

Setting goals, on the other hand, involves defining specific, desired outcomes. A goal might be to save a particular amount for retirement or to pay off a specific portion of debt within a year. However, goals can remain unmet if they are not backed by actionable steps and consistent efforts.

The Power of Forming Habits

The key to turning resolutions and goals into reality is habit formation. Habits are regular, often unconscious patterns of behavior that shape our daily lives. In the context of finance, forming good financial habits is crucial. These habits act as the building blocks of your financial systems, ensuring consistency and progression towards your goals.

Debunking the Myth of Overnight Success

Success, especially financial success, is often misconceived as an overnight phenomenon. The reality, however, is far different. True success is the result of consistency, time, and a systematic approach. It's about creating and adhering to systems that foster positive financial habits.

Systems Over Goals: A Strategic Approach

Focusing on systems rather than solely on goals can be more effective. For example, if financial freedom is your goal, developing a system that promotes good financial habits is essential. Such a system could include automating bill payments, regular investing, and strict budgeting. These habits and systems have compounding effects over time, turning time into an ally rather than an enemy.

The Impact of Good vs. Bad Financial Habits

Good financial habits, like timely bill payments and prudent investing, have positive compounding effects. They save time, reduce stress, and can lead to an improved credit score and wealth accumulation. On the contrary, bad financial habits, such as late payments or overspending, have the opposite effect. They can increase stress, lower credit scores, and lead to mounting debt.

Embracing Change as a Journey

Transforming your financial habits is rarely easy and often feels like a journey filled with challenges and setbacks. The key is to stay focused on the destination, seek support when needed, and be mindful of both your good and bad habits. As you embark on this journey, it's vital to understand the systems behind your habits and develop a clear roadmap to your goals.

Build Habits

Remember, the journey to financial well-being isn't just about setting ambitious goals or making resolutions; it's about building and maintaining habits that lead to a sustainable and rewarding financial lifestyle.

Plan Pursue Protect

Tailored Tip

True financial change lies in habits, not just goals. Cultivate good financial habits for long-term success and stability