3 ways to keep your financial resolutions for 2022

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Only 9% of people stick to their New Year’s financial resolutions, that’s how you can succeed!


Key points

  • Of the 40% who set New Year’s resolutions, only 9% stick to them.
  • Committing to a system instead of focusing on a goal will help you get the results you want over time.
  • Results have little to do with the goals you set, but more to do with the systems for achieving the goals.

As 2021 draws to a close, many of us are thinking about starting off on the right foot for 2022. About 40% of Americans have New Year’s resolutions. Unfortunately, only 9% of people achieve their New Year’s goals. Do you want to be the 9% who are successful? Even if you couldn’t keep your resolutions, it’s not too late. Here are three ways to keep your 2022 financial resolutions and get back on track.

1. Learn the difference between goals and systems

TO system it sets the framework and is the means to achieve its goals. Systems-based thinking is not about hitting a certain number, but about sticking to a process where you can continually build on your progress. Systems help you focus on what you can control. Goals, on the other hand, are good for setting direction, keeping you motivated and focused.

One of the top financial resolutions people make each year is to save more. Saving $1 million is the goal. Creating a budget to save 20% of your income is the system. Losing weight is the goaleating healthier and exercising more is the system.

2. Commit to the system, not the goal

Why is this important? If success is tied to a certain goal, it increases stress, especially if you don’t reach your goals. But if you focus on the system, you can learn to enjoy the current moment while improving yourself at the same time. Once you achieve a goal, the motivation often stops. Instead, committing to a system will help you continue to move forward if you achieve your goal.

Another popular resolution is to improve your credit score. Let’s say you reached your goal of achieving a 720 credit score. Congratulations! However, if you miss a payment the following month, your credit score will take a big hit. Reaching the goal is not enough.

You must commit to a system of paying your bills on time, paying off debt, and limiting the number of credit score inquiries. In this way, you will not only meet the goal, but you will exceed it. You can’t get long-term results just by setting objectives. You get long-term results by establishing and sticking to a system.

If people who invest today expect a great return tomorrow, they will most likely be disappointed. But if you stick to a system With disciplined investing, you’ll be more likely to get the results you want over time. Consistent systems help people avoid emotional decisions if goals are not met immediately or even after they are met.

In the end, systems help you be consistent. It helps you find feedback so you know what to adjust to improve the process. If the correct system exists, the goals are not the end, but the means to build the correct system.

There’s a reason only 9% stick to their financial resolutions. By understanding the difference between a goal and a system, committing to an effective system to accomplish your goals, and focusing on the long term, you, too, can become part of the 9%.

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