American Center for Credit Education

Q. My wife and I always resolve to manage our money better in the New Year. The problem is something goes wrong or breaks down, and we up give up on our resolution after a few months. How can we make resolutions we can keep?

A. The news is full of articles touting what you should do to improve your finances in 2017. I’m not fond of “need to” or “should do” when it comes to managing your finances. Rather, I believe in keeping things simple and working toward what you want.

What’s more, I prefer the word goals over resolutions. Goals are personal and give you direction; they can change over time as your priorities change. Goals are based on what you want to accomplish, not what you think you should do. Very few people succeed with “should dos.”

To set goals, here’s how to get started. Get a piece of paper and three index cards and call a family meeting. Couples should make joint goals, and a family should gather input from everyone old enough to contribute their ideas.

Now the hard part – make a list of what you want. This is as hard as it gets. Sometimes it really is difficult to determine what you want. Write down everything that everyone suggests. The only rule is you have to be specific. For example, financial stability is not a specific goal, but buying a new car is.

You mentioned that something always goes wrong and upsets your financial plans, so maybe your first goal should be to build an emergency account of $500 or $1,000. Or perhaps you want to contribute to your retirement fund at work. Maybe you want new tires? A family trip? Perhaps you want to do some home repairs or buy a home. Maybe you want to improve your credit score? For this exercise, time is irrelevant. List everything on the paper.

Now it’s time to narrow down the goals that you truly want your family to accomplish. Transfer this list to your index cards. All three index cards should have the same items on them in the same order. At the top of the card write 2017. You now have your goal card.

Keep one card for yourself, give one to your significant other, and leave one where you will see it often; the refrigerator or the computer are both good options. Keep your own card in your wallet or checkbook – wherever you will see it when you spend money.

Your mind now knows what it wants and will set out to accomplish it. You will have set backs; we all do. But keep your goal card with you, and it will help you get back on track to what you want. When you get your tax return or come into extra money, you will have a plan for it because you have goals you want to reach. On the other hand, when you get an urge to buy what your co-worker or friend has, you will be able to refocus on what you want – not what someone else has.

It truly is as simple as writing down what you want on an index card and keeping it with you. Try it and you will be amazed by how much you have accomplished by the end of 2017. I’d love to hear your goals and about your progress in the year to come.

Bonnie Spain is the executive director of the American Center for Credit Education and Consumer Credit Counseling Service of the Black Hills. For more information, email acce@acce-online.com.

The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.