The Secret to Keeping Your New Years Resolution

With 2014 quickly approaching many of us will once again participate in that time old tradition of creating a long list of New Year’s Resolutions.  This is the year that we are going to make our list come to fruition! But wait, isn’t that what we said last year and maybe the year before too? 

The reality of resolutions is that they rarely come with the practical instructions to truly get us to incorporate change into our lives.  It is easy to say that this is the year that I will get healthy and fit.  Having an actual plan for getting out of bed each morning to go to the gym is a different story, not to mention figuring out what actually happens at the gym!  The same can be said for getting more financially fit.  Yes, I want to start budgeting, yes I want to save more and spend less but how, how do I make that happen? Well, hang tight because I am about to let you know in on the secret!  Are you ready?

The truth is (insert drum roll…), there is no secret.  There is no magic solution to getting more fit (either physically or financially).  It is a slow process, putting one foot in front of the other.  We have to pick one or two things that we can reasonably change and the success from that will help encourage us to take on other applicable self-improvements.  Below is an example about a small change I made that really added up!

I have a 3 year old son which means, I need to budget for childcare.  Because I write checks to his preschool and childcare providers I originally thought the best place to leave the funds for these expenses was in my checking account. In developing this plan I wish I had anticipated the potential drawbacks.  You see, my checking account really serves as a transactional account; money comes in and money goes out.  Sometimes it seems that money goes out faster than it comes in!  With the convenience of having a debit card, the funds are, figuratively, always in my pocket and I use this account for my everyday spending. If I am at the grocery store picking up cereal and almond milk, I am not thinking about paying for childcare; I am thinking about tomorrow morning’s breakfast.  The downside, however, was that I was often actually spending the money designated for childcare. 

After a few months involving lots of stress because of those $27 overdraft charges, I realized that this method was not working for me or my budget.  This situation served to reinforce what I already knew: to save money I need to put it in its own place.  Now every time I get paid, I put money specifically designated for childcare into a separate account where it stays until the very moment the check needs to be written.  Thankfully with the addition of Mobile Banking it is easier than ever to quickly transfer those funds to my checking account.

In the end, this was only about relocating already designated funds. What simple change will you make in this New Year?