A new year always feels like a reset button. Fresh goals, fresh energy, and maybe even a fresh planner. There is nothing like a fresh planner, in my humble opinion. And, while “getting in shape” often tops the resolution list, this year might be the perfect time to focus on financial fitness.
The good news? You don’t have to overhaul everything all at once. Building financial muscles works a lot like building physical muscle – small, consistent effort over time makes the biggest difference.
If money feels overwhelming, start with confidence-building basics, like spending time understanding where your money goes each month or learning one new financial term a day. Learning a little at a time really does add up.
Current learning trends show that consuming small amounts of consistent education – five to ten minutes a day – creates lasting understanding. Reading a short article, listening to a podcast on your commute, or reviewing one financial concept a week can steadily strengthen your money mindset.
Some great “start small” steps include creating a zero-based budget, which is a fancy way to say every dollar you expect to earn has a job before the month begins. It’s one of the simplest and quickest ways to feel more in control.
Another helpful habit is reverse planning for future goals. That is, start with where you want to be (a vacation this summer, a new car at the end of the year, retirement in ten years, etc.) and then work backward to figure out the steps to get there. These might be weekly, monthly or quarterly changes in habit.
Example:
In September I would like to take my family on a trip to the beach. The maximum amount we would want to spend is $2,000. I have about 7-8 months to save this up and still book things earlyish.
$2,000 divided by 8 months = $250 per month
Part of this exercise involves asking myself, “is this feasible within my monthly budget? Or, do I have $250 left over after all my needs AND higher priorities are accounted for in my budget?” If the answer is no, maybe the answer is reducing the maximum budget – vacation for fewer days. If that is doable, great! If not, be realistic and use responsible financial fitness muscles to say, “we should probably wait until next year.”
As your confidence and savings account balances grow, you may feel ready to explore investing options. This doesn’t mean jumping in blindly. It could be as simple as learning the difference between short-term and long-term investing, understanding risk comfort level, or reading about how compound growth works over time. Small lessons now can lead to confident decisions later. And the goal isn’t perfection – it is progress!
One of the most powerful steps you can take is scheduling a meeting with a financial expert. Having a conversation can remove so much uncertainty. Think of it like a financial wellness checkup!
Financial wellness impacts nearly every part of life, from stress levels to future freedom. This year, give yourself permission to try something new, even if it’s “small” steps as the year goes on. While you’re setting resolutions to eat better, exercise, or drink more water, remember what a personal trainer once said to my friend – consistency is what turns small steps into habits and habits into lasting results.
This article is provided for educational and informational purposes only and does not constitute financial, legal, or investment advice. The strategies and examples discussed are general in nature and may not be suitable for your individual circumstances.
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