How To Pick A Resolution That Will Actually Stick

How to Pick a Resolution that Will Actually Stick

Tips to Making your Resolution Last

It’s that time of year! Resolution time. We usually like to start with some lofty goals and high ideals. It’s the month of extremism and abstinence.

I won’t spend money on anything for the whole month.

I will stop drinking forever.

I will not make any impulse purchases ever.

These are all dreams that are not actually realistic. We are humans. Humans have wants and desires that are hard to overcome and to do that we have to be realistic. Setting to large of a goal can actually lead to failure. It it easier to accept defeat when it was long-shot anyways. “Reach for the stars” and “aim big” are great tenants to live by but not very practical when actually choosing a goal and resolution that you want to reach.

Every big achievement starts with small baby steps.

Specific. Actionable. Measurable. Realistic. Lasting

Lasting- Choose something that is maintainable. Going on a spending fast is not going to get you anywhere concrete. It may help you for this month, but what about the next?

How do you choose a resolution that you will actually keep? Make sure it has some of the following characteristics:

Specific- big, sweeping statements sound nice and motivational but are not actually practical. I will not drink alone before 8 o’clock at night is a specific goal that solves a specific problem.

Actionable- Choosing to do something is easier than choosing NOT to do something. I will make myself coffee at home is easier to do, than I will NOT buy coffee at Starbucks.

Measurable- You need to be able to measure what you do do that you can celebrate when you do it. You need to be able to build on the positive momentum of your achievement. Create a goal that you can measure. Something subjective is not ideal because of the human tendency to create excuses. So “I will not make impulse purchases” can’t really be measured because who decides what is an “impulse”? I will not spend more than $50 is measurable, you either did or you didn’t. “I will make coffee at home for one week” is measurable.

Realistic- If the goal is unrealistic or too difficult than you will quit before you start. We don’t like failure so if the goal is never going to be reached we probably won’t try at all. You are probably not going to save 50% of your paycheck right off the bat. You probably won’t cut all impulse spending right away (if this is an issue for you). Some things that are more realistic? 5% or 10% of your paycheck should go to savings. Put $5 a month away in a retirement account. Set a budget for impulse purchases that is what you can afford but not too small that you blow it all on the first day.

Lasting- Can you pick something that will last the whole year? Choosing a goal or resolution that will last and be a real change in your lifestyle (forever?) should really be the point. After all, wouldn’t it be great if each year you make a change that can be build on the next year? Don’t pick something flashy that will make you burn out by February. Pick something small, meaningful, realistic and measurable that you can really do for the whole year!

Why I put $5 a Month into a Retirement Account

Why I put $5 a Month into a Retirement Account

What should I do if I don’t have enough money to save for retirement?

I’ve been working on building an emergency fund. Unfortunately there have been a lot of setbacks which means that its taking me a really, really long time. I don’t make a lot of money so putting money way is very, very hard. Putting money into a retirement account is not really happening right now. Yet, I still put $5 a month in. Why do I do that, you ask?


How Did This Start?

Continue reading “Why I put $5 a Month into a Retirement Account”

What They Don’t Understand….

Living Paycheck to Paycheck

The thing with living paycheck to paycheck or with being poor is that you don’t have money. Everyone who is reading this is probably scratching their heads because it seems really obvious. And it is very obvious. No money=no money to spend. But there seems to be a subset of the population that doesn’t really understand what that really means.

What do I mean?

Take myself for example, by the current financial calculators I am classified as “low-income”. Not middle class- the one below that;). I, (thank G-d!) do not live below the poverty line but I am, by definition, poor. I do not like being poor so I am working on changing that. I work hard and I am slowly working my way up in my company. As a “side hustle” I decided to start a blog. Now, this is not a woe-is-me post but merely an example. I have not made any money from this blog (yet!) but I hopefully will. But that takes time, and not only time but money. There are hosting fees, for example. Now, I orginally started this blog using one hosting site. But when renewal came around, their prices were too expensive for me. So I decided to switch hosts to save on costs. This procedure requires more technical skill than my own rudimentary skills, and I couldn’t afford to hire someone to do it for me, so I had to rebuild my site. Instead of taking the time (this is all in addition to my full-time job and mothering duties) to build up my site,. Increase my reach, monetize my site etc. I had to spend time recreating the work I had already done. This all took double the amount of time because my computer is very slow and glitchy. This is because I have a very bad laptop. It constantly freezes and opening an internet tab takes approximately ten minutes. You can imagine how long it takes to find photos for my posts! I can’t afford another computer right now, even as an investment.

Which brings me to my point: poor people can’t really invest.

Investment is inherently risky. I can spend money on a new laptop in the hope that it will bring me more money but I really can’t be sure of that. I don’t know if I will make the money back-especially not in the time frame that I would need it. So I struggle with my old, creaky laptop and hopefully will slowly make the money to be able to buy a new one. Even though buying a new after laptop will help me make more money, of that doesn’t happen-the risk is to large for me to swallow. What’s a few hundred dollars, you ask? A lot. It’s a lot. It will literally take me MONTHS to set aside that amount of money.

Buying in Bulk- This is common advice that I see given to help people save money on food. The cost savings can be huge. BUT…. that is assuming that you have the money to lay out for it. Many don’t. Many people can’t lay out a large amount of cash-or blow their entire food budget on one ingredient that will save them money in the future. It’s too risky. They may not have the money to pay it back. The cost-savings may not turn out as great as initially perceived. Things go bad, things drop on the floor. Even if the investment is worth it, the emotional energy it takes to remember to “pay-back” the $5 you saved on rice can be too much for many people.

Why am I writing all this?

This is not a pity post or a sympathy post. This is an explaining post. This is explaining why we (the poor people of the world) are not taking your very good financial advice. Your financial advice is great but we can’t afford to take it. We can’t buy equipment for our side hustle. We can’t buy 3 months of rice in one go even though its cheaper. We can’t buy membership at Costco. We don’t have the money to buy this season for the next. We can’t buy solar panels or invest in large-minimum balance accounts. We want to. Maybe one day we will. It just is going to take us a longer time to get there.

Meanwhile, we are doing the best we can to stay out of debt and maybe build some savings. And maybe, just maybe, buy a new computer one day.