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If 2021 threw your finances for a loop—or was a continuation of the challenges you encountered in 2020—a financial resolution might be on your list of ways to improve your life in 2022.

More than two-thirds of Americans are considering a financial New Year’s resolution, according to Fidelity Investments’ Annual Resolutions Study. The most popular financial resolutions among people considering one? Save more money, pay down debt and spend less.

But simply making a resolution doesn’t mean you’ll be able to keep it. Less than half of people who make resolutions are still on track to meet their goals by June. If you want to be in the group that succeeds, you should learn how to overcome challenges that can make it harder to achieve financial goals.

Here’s why it’s so hard to keep a New Year’s Resolution—and five ways to make a financial goal you can actually achieve.

1. Recognize That Achieving Financial Goals Can Be Tricky

As much as you’d like to think that improving your finances depends on simple math, it’s much more complex than just the dollars and cents: It’s emotional. “Most money behaviors are emotionally dictated,” says Cecile Lyons, a psychologist specializing in financial psychology. “In a split second, our brains make a decision and rationalize it.”

Talking about money can be hard, which means you may not feel comfortable shouting your financial goals (or your challenges) from the rooftop.

And because you may not feel completely comfortable talking about your finances with others, you might hesitate to tell people about your resolution or enlist a friend to help keep you accountable as you progress.

“There’s a lack of transparency, and a sense of shame that may go along with behavioral patterns a person has or doesn’t have,” Lyons says.

To complicate matters further, throw in the financial trials of a global pandemic.

If you’re dealing with reduced income, employment instability, or health concerns, you may not want to set a resolution at all—regardless of how you approached previous new years. Instead, you may want to focus on actions like applying for pandemic financial aid like rental assistance or reviewing your student loan repayment plan.

2. Identify and Understand Your Motivation

We make resolutions at the top of the new year because it feels like a natural time for change, says Saundra Davis, financial coach and founder of Sage Financial Solutions. But “…….

Source: https://www.forbes.com/advisor/personal-finance/new-years-financial-resolutions/