As you finish off the last of the mince pies and look towards the approaching new year, you may be thinking of some goals to set for 2024.
It’s customary to set new year resolutions as we head into January, but research has found that very few of us keep them beyond the first few weeks of the year.
So, what can you do instead? Read on to learn why a more long-term perspective on your goals could be the answer.
January is often seen as a time for a fresh start
Setting new year resolutions is a popular tradition. In 2023, Mind reported that 30 million people set themselves a resolution. The most popular subjects were:
- Health (28%)
- Money (27%)
- Family (24%)
- Self-improvement (21%)
Sadly, few new year resolutions stick. The report shared that seven weeks is the average length of time between setting a resolution and breaking it; 21% of Brits had broken theirs within a month.
Most new year resolutions fail, even if you really want to keep them
If you’ve set new year resolutions in the past, you may have experienced the difficulty that many go through to keep them. Even when you’re keen to reach your goals, taking the actions required to achieve them can prove deceptively difficult.
You may feel reassured to discover you’re not the only one to have found this. Psychology Today reports that the more you want to achieve a goal, especially a demanding one, the less likely you are to actually achieve it.
It’s the pressure we place on ourselves when setting new year resolutions that could be the reason so many of us fail to keep them over the long term. Consider how difficult it can be to fall asleep when that’s all you can think of doing – usually, the more you think about it, the more difficult it is to achieve.
Long-term financial goals are more likely to succeed than new year resolutions
Over the years of working with our clients to help them achieve their goals, we’ve noticed one thing in particular that tends to lead to success.
Typically, the work you’ll do with us on your financial plan starts with a discussion about what you want your life to look like in the future. This might be in 5, 10, 15, or even 50 years into the future, so it can take some deep thought to identify the specific goals you want to achieve in that time.
This first step in the process is vital, because without a clear picture of where you want to go, it’s impossible to create an effective plan that will take you there.
Another benefit to this way of thinking about your goals is that you are more likely to stick to your plan and fulfil your ambitions if you can clearly picture your future self. We’ve found this to be true countless times in our work with our clients, and a major report by Aegon confirms these findings.
So, rather than setting a new short-term goal every year in January, a more effective way to build a fulfilling life might be to think more long-term about what will bring you lasting happiness.
Your financial planner could help you to achieve your long-term goals
As well as long-term thinking, there are a few other factors that could help you to be more successful in achieving your goals. These include:
- Breaking down the goal into small, manageable steps
- Holding yourself accountable for taking the necessary actions to hit your goals
- Reviewing your progress at regular intervals.
These are all vital ingredients to financial planning. When you work with a planner, they’ll not only help you to identify the goals that will bring you fulfilment, but they’ll also help you to stay on track for achieving them.
For example, you might wish to retire at age 50. This impressive goal could feel overwhelming at first, but by breaking it down into smaller steps you can make it more achievable. Perhaps you’d start by increasing your monthly pension contributions, then by reviewing your investment portfolio.
These smaller tasks are far more manageable.
Add in an annual review with your planner to chart your progress and decide on the next steps that you need to take, and you’ll soon be well on your way to fulfilling your ambition.
What’s more, you’ll do all of this without a new year resolution in sight.
Get in touch
If you’d like to know more about how we can support you in achieving your long-term financial goals, please get in touch.
You can email us at financial@barwells-wealth.co.uk or call us on 01273 086 311.
Please note
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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