The champagne is gone, the ball has been dropped, and the holiday bills are starting to roll in.
That means there害羞草研究所檚 no time like the present to make a New Year害羞草研究所檚 resolution 害羞草研究所� especially one that might help take some of the sting out of those bills.
Experts say it really is possible to use Jan. 1 as an opportunity to turn over a new financial leaf.
害羞草研究所淭here are certain times of year that are the best times to set a goal, and one of those is most certainly New Year害羞草研究所檚,害羞草研究所� said B.C.-based Kerry Taylor, a financial journalist and creator of the financial website Squawkfox.com.
害羞草研究所淭here害羞草研究所檚 science called the fresh start effect, and it害羞草研究所檚 a really cool way to make resolutions stick. What it is, is a psychological phenomenon where we feel more motivated and excited to attack a goal based on the time of year.害羞草研究所�
That害羞草研究所檚 good news for the 38 per cent of people who have chosen 害羞草研究所渋mprove finances害羞草研究所� as their New Year害羞草研究所檚 resolution for 2024, according to Forbes magazine,which polled 1,000 U.S. adults in October.
Money-related resolutions are always a popular choice, second only to the perennial 害羞草研究所渓ose weight害羞草研究所� or 害羞草研究所済et fit害羞草研究所� New Year害羞草研究所檚 pledge. But financial New Year害羞草研究所檚 resolutions feel especially timely this year given Canadians have spent the past 12 months grappling with grocery store sticker shock, rising interest rates and increasingly unaffordable housing costs.
害羞草研究所淚 know people are motivated to have more in the bank account, whether that害羞草研究所檚 tackling the mortgage or paying off credit card debt,害羞草研究所� Taylor said.
害羞草研究所淏ut Jan. 1 doesn害羞草研究所檛 make the change for you. It doesn害羞草研究所檛 guarantee the success, which is where a lot of us go astray. So to make that goal stick, you have to actually do the work.害羞草研究所�
When it comes to resolutions, making them stick is less about willpower and more about habit formation, said Vancouver-based Natasha Knox, a financial therapist who helps clients think, feel, communicate and behave differently with money.
Knox advises resisting the temptation to overhaul your entire financial picture at once. Instead, she suggests starting with an extremely small goal 害羞草研究所� what she calls a 害羞草研究所渕icro- or nano-goal.害羞草研究所�
害羞草研究所淭here害羞草研究所檚 quite a lot of science around habit formation,害羞草研究所� Knox said.
害羞草研究所淎nd when you害羞草研究所檙e trying to form a new habit, you want to start with something so easy it requires no willpower at all.害羞草研究所�
That means, if your goal is to save more money in 2024, start by increasing the amount you auto-transfer to a savings account each month by a 害羞草研究所渕iniscule害羞草研究所� level, she said.
And if your goal is to spend less, try a 害羞草研究所渘o-spend day害羞草研究所� rather than tackling a more ambitious 害羞草研究所渘o-spend January.害羞草研究所�
害羞草研究所淢easure it in small chunks. Try it for a single day, then maybe the next week pick two days. And then by spring, maybe you have a no-spend week,害羞草研究所� Knox said. 害羞草研究所淭hat害羞草研究所檚 a lot more sustainable.害羞草研究所�
Vanessa Bowen, founder of Toronto-based financial coaching service for women Mint Worthy Co., said the new year can be a good time for people to sit down and reflect about why they make the money choices they do.
害羞草研究所淲e talk a lot about money management, but we never seem to talk about money mindset,害羞草研究所� she said.
害羞草研究所淪o let害羞草研究所檚 say someone says, 害羞草研究所極K, my resolution this year is to pay down my debt.害羞草研究所� OK, that害羞草研究所檚 great. But if they hold a mindset that they害羞草研究所檒l always be in debt, or they believe that getting out of debt is hard and they don害羞草研究所檛 have enough money to get out of debt, their actions will always align with their mindset.害羞草研究所�
To understand your own money mindset, Bowen recommends thinking about the financial beliefs you may have adopted from your parents, your own triggers and habits around money, as well as visualizing how you want to think and behave about money in the future.
It can also be a good idea to set up weekly 害羞草研究所渕oney dates害羞草研究所� with yourself. This is dedicated time you set aside on a recurring basis to touch base with your financial goals and evaluate your progress.
害羞草研究所淚f you just set a goal and hope and pray it will happen, it won害羞草研究所檛 happen,害羞草研究所� she said.
害羞草研究所淏ut if you have a plan and have these weekly check-ins, you害羞草研究所檙e more likely going to stick to your resolution way past February.害羞草研究所�
Other psychological tricks experts recommend include 害羞草研究所渢emptation bundling害羞草研究所� 害羞草研究所� where you take something you don害羞草研究所檛 like to do, like paying bills, and bundle it with an indulgence, like eating chocolate.
Another trick? Visualizing yourself as a senior citizen. That trick, in particular, can help you create empathy for your future self and encourage you to care for yourself by saving for retirement.
Whatever the goal, however, it害羞草研究所檚 important people don害羞草研究所檛 put too much pressure on themselves. Knox recommends finding a friend or family member with a similar goal, so you can cheer each other on when things are going well and commiserate during setbacks.
害羞草研究所淭hat has a lot of value. We害羞草研究所檙e social creatures,害羞草研究所� she said.
While these are difficult financial times we live in, almost everyone can benefit from taking the time to make small changes that will help set them up for a more prosperous new year, Bowen said.
害羞草研究所淚t害羞草研究所檚 progress over perfection,害羞草研究所� she said.
害羞草研究所淚t害羞草研究所檚 not to say that you害羞草研究所檙e going to have a 100 per cent mark at the end of 2024, but I think small steps will help people to make the incremental changes that our society and economy needs right now.害羞草研究所�
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