As an avid runner and exercise aficionado, I regularly count on my workouts to keep me balanced and energized. There is something so therapeutic about tying up my shoes, flipping on my iPod and sweating it out. But for one month a year, my gym is the last place I want to be. Every January, hordes of well-intentioned New Year’s “resolutioners” pack into the gym at all hours of the night, stealing equipment from the regulars, only to stop going entirely by the end of the month.
Why Our Resolutions Fail
As much as I hate waiting for a treadmill, what really gets to me is how quickly this phenomenon fades. Consistently, year after year, I will see a new crop of faces in the gym every day (decked out in the best fitness gear, of course) and then … nothing. What happens? How does a serious resolution fail in a matter of weeks?
I believe that in fitness, as well as in finance, we have a tendency to try to bite off a bit more than we can chew. “I will lose eight pounds in four weeks” or “I will max out my retirement plan and kids’ college fund, while also saving for a down payment on a new sailboat.” Our intentions are almost always good, but they can be so lofty that if we don’t reach them, we are quick to abandon the endeavor entirely.
Start Small
Time and time again, research shows that a more successful approach is to set a smaller goal that can snowball into a much larger one over time. You want to start saving? Great! Start by putting $20 a week in a jar, or pick a larger number that still feels meaningless to you. You want to cut spending? Easy! Just cut the number of spa visits per week from three to two. (Substitute “lattes” for “massages” if you’re not a one percenter). If that feels fine for a few months, then take it one step further. What matters is building the process of saving and having a plan. Make it automatic and go for it, no matter how little the sum seems at first. With every deposit, you are building your savings muscle, and the longer you save, the stronger that muscle becomes.
Starting a savings program, just like an exercise regimen, takes time. Get started somewhere—anywhere—and then build on that. If paying down a margin loan all at once seems daunting at first, then start by paying it down $100 a month. Check back with yourself after a few months to evaluate, then increase the amount. Wait two more months, then do it again. You get the idea? After all, going to the gym one day a week is a lot better than not going at all.
The More Manageable the Plan, the Better the Results
In finance and fitness, the more manageable the plan, the more likely you are to see results. For everyone, that starting point may be different. I work with each of my clients to understand their individual needs and break down their financial goals into realistic, attainable pieces.
