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The start of a new year is a natural time to reflect, set goals and make changes. When it comes to money, many resolutions fizzle out by February. Research suggests that around 80% of New Year’s resolutions fail, and 61% of them relate to money or finances.
Episode 1 of the Retire Well with Wealth of Advice podcast explains why financial resolutions often fail and how making them smarter, better-planned and actionable can help you achieve long-term success.
Our hosts, Joe and Matthew, Chartered Financial Planners, start by reflecting on what drew them into financial advice. They share how a long-term relationship with clients allows them to watch people achieve their financial goals, and how understanding basic financial principles is often more challenging than people anticipate.
A key insight is that many people set resolutions at New Year without the time or preparation needed to follow through.
• 80% of resolutions fail by February.
• Many financial resolutions are overly ambitious or poorly structured.
The podcast suggests a better approach is to consider making financial resolutions in the spring. This gives time to plan, prepare and start with realistic, achievable steps.
Joe and Matthew share practical examples of financial resolutions that have helped their clients make meaningful progress:
• Tax-Year End Planning. Preparing early to optimise allowances, minimise liabilities and structure contributions effectively.
• Pension Consolidation. Reviewing existing pensions to simplify administration, reduce costs and improve retirement flexibility.
• Financial MOT. Conducting an annual review of savings, investments and insurance to ensure goals remain on track.
The hosts also highlight the importance of financial education, because understanding your options is key to taking confident action.
So, how can you ensure your resolutions are more than just a passing thought? Joe and Matthew share a framework based on SMART objectives:
1. Specific. Clearly define what you want to achieve.
2. Measurable. Decide how you will track progress.
3. Achievable. Make goals realistic given your circumstances.
4. Relevant. Align goals with your broader financial plans.
5. Time-bound. Set deadlines for action.
For added impact, the podcast introduces SMARTER resolutions. Regularly Evaluate and Revise your goals to adapt as circumstances change.
Matthew also emphasises the importance of habit formation, inspired by James Clear’s Atomic Habits. Consistent, small actions compound over time, making success much more likely.
Rather than rushing into resolutions in January, consider using the early months of the year to plan and prepare. This allows you to:
• Review your tax position and allowances before the tax-year end.
• Assess your pension and investment options.
• Identify small, achievable steps toward larger financial goals.
By setting well-structured resolutions with the right timing, you increase the chance of long-term success.
Financial resolutions are most effective when they are planned, structured and realistic. Simply resolving to “save more” or “invest better” without a clear plan is unlikely to succeed.
If you want to turn your financial resolutions into results, Wealth of Advice can help. Our team of Chartered Financial Planners can guide you through pensions, investments, tax planning and more.
Get in touch today to book a consultation and start the year with a clear, practical plan for your finances.
If you want a better view of what your future could be, we'll have a chat and work out if we make a good fit for you and your financial picture.
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