Did you know that most Americans who make money-saving resolutions this new year will fail to keep them?
According to TheStreet, around two-thirds of American adults are making money-saving resolutions this year. Unfortunately, many of these resolutions will not be kept.
There are plenty of reasons why people struggle to keep these resolutions. Being aware of them makes them easier to address – and makes keeping those important resolutions easier, too!
Here is what you need to know about the difficulties many Americans have in achieving their money-saving goals and how to break that mold and find success:
Why are So Many People Making Money-Saving Resolutions This Year?
You may have noticed that many people are resolving to save more money this year. While financial resolutions are always popular, surveys have shown that more people than ever are resolving to keep more money in their pockets in 2023.
Why is that? For many people, it is a result of lived experience. The last three years have been difficult for most Americans. Between the pandemic, resulting material and labor shortages, and inflation, every trip to the store has seemed more expensive than the one before it. Add to that the fact that many people were unemployed or underemployed during this time and it is no wonder so many people are trying to save more money in 2023!
Are Your Money-Saving Resolutions Doomed to Fail?
Unfortunately, for as many people that make money-saving resolutions in 2023, there will likely be nearly as many who fail to achieve them. There are many reasons why this happens. The frequency with which these resolutions fail often means people quit before they even begin and skip them altogether.
Is saving more money in the coming year possible? Are your money-saving resolutions doomed to fail? While it might be statistically more likely, understanding why most people fail to achieve these goals can help you achieve what many cannot – or determine if you still need to do some work before you begin saving.
Reason for Failure #1 – Many People Are Not Prepared for Change
According to many experts in human psychology, there is one reason above all others that resolutions fail. This is the fact that most people are not actually prepared for the changes that have to be made to achieve their goals.
For those who are looking to lose weight, making major changes to their diet and exercise habits can be uncomfortable, unpleasant, and just plain undesirable. Because of this, many people “slip up” in their attempts to lose weight or eat better – and then abandon their plan altogether.
The same can be said for saving money. If you are not prepared for the changes or even sacrifices that come with a money-saving lifestyle, you may not see success. Likewise, if you are not ready to adhere to the plan long-term, you may only be able to save a little bit for a short time. It takes commitment and understanding of the process to be successful. Make sure you have both before you begin!
Reason for Failure #2 – Failure to Plan Properly
You may have heard the phrase “failing to plan means planning to fail”. There are few places where this is truer than in the instance of creating major financial goals.
As mentioned previously, not knowing what you are up against in the process of saving money can lead to frustration and failure. That is why planning is so important. Gathering information about what will need to be changed or given up is the first step, followed by making a detailed plan for how you will make that happen.
Many people begin the year with the intention to save more cash, but they do not actually know how much they are currently spending. While tracking your monthly bills may be as simple as opening an app and looking at your payment history, other expenses are more difficult to quantify.
Examine how much you are spending on gas. What about groceries? Does your family have childcare expenses, lessons or activities for children, pet care costs, or entertainment that you regularly pay for? Most families do – and these expenses can often be a sneaky way that money leaves our wallets.
Reining in these expenses may not be easy, but knowing what they are and how you plan to reduce or eliminate them is necessary for your success.
Reason for Failure #3 – Lack of Self Control and Inadequate Support
Another major reason that many people fail to save money is that the people around them make it difficult.
If you have children, this can easily be seen in the way they ask for things without understanding the price tag. They may have activities or events they want to attend that cost more money than your budget allows. Everyone expects parenting to cost more than they want it to, though.
What fewer people expect are spouses, partners, family and friends who have different ideas about spending. Your coworkers may insist you have drinks with them or your friends may plan a weekend getaway that you simply cannot afford. Your family may complain that you aren’t visiting or meeting up with them as often. The people around you are never going to have the same goals in life, but differing approaches to spending can be particularly frustrating – and can lead to resolutions falling flat.
While finding support for money-saving resolutions at home or amongst friends may be difficult, it doesn’t have to be unobtainable. There are ways to find the guidance and support you need to achieve your goals and get your finances back on track.
If you need financial guidance or have questions about what steps should be taken to get your money right, talk to the experienced team at the Van Horn Law Group. While they may be well-known as Florida bankruptcy attorneys, they are always available to offer legal advice for those who might not yet be ready for a step like bankruptcy.