Author: Michelle Griffiths, Partner, TAG Financial Services
We’re now at the end of January, and let’s face it, the enthusiasm for New Year’s resolutions can dwindle faster than that last slice of nanna’s Christmas cake. Statistics say only 22% of resolution-makers make it past January.
So, how’s your commitment holding up? If you’re feeling a bit wobbly, fear not—let’s recalibrate and set you on the path to success.
1 | Clarity is Key: Define Your Goals
Before diving into resolutions, pause and gain crystal-clear clarity on your overarching goals. Ask yourself: What do you want to achieve, and why does it matter, why is this important for you?
For example, if your financial goal is to build up your savings, defining success may look like: “I want to save $20,000 to cover unexpected expenses, and start saving for my child’s education costs which are due to start next year.”
2 | Personalise the Change: Weave Resolutions into Goals
Every resolution should be a thread in the fabric of your larger goals. If your goal is to increase your savings, a resolution could be to cut down on non-essential spending. This directly impacts your broader financial plan and makes the change more meaningful.
See my article about “financial leakage” which goes into more detail about this: 4 Steps to Fix your ‘Financial Leakage’
3 | Keep It Simple: One Goal at a Time
The excitement of a new year can make us want to change everything at once. But here’s the kicker: prioritising is the name of the game. Pick 1 or 2 changes to focus on initially.
For instance, if you’re aiming for a healthier financial lifestyle, start with understanding where your money currently goes and setting up a tracking process so you can measure this over time.
4 | Measure Your Success: Set Tangible Metrics
What gets measured gets managed. If you can’t measure your progress, it’s challenging to stay on track.
Going back to my savings example, track your monthly savings contributions by having a separate bank account for this or if you have a mortgage it may work well to add this to your mortgage, just make sure you have a re-draw that you can access and keep track of it this way.
Tangible metrics keep you accountable and highlight your financial growth.
5 | Break It Down: Turn Mountains into Molehills
Big goals can be overwhelming. Break them down into smaller, more manageable steps.
If your financial goal is to invest, your steps could include researching investment options, setting up an investment account, and allocating your first investment.
6 | Blend with Existing Habits: Make It Effortless
Starting a new habit? Look at your existing routines and find ways to seamlessly integrate the new behaviour.
If you want to track your expenses diligently, tie it to an existing activity like reviewing your spending every Sunday evening whilst you watch a movie with your family.
7 | Accountability is Key: Partner Up
Share your goals with someone who can keep you accountable.
This could be a financial advisor, a friend with similar financial aspirations, or even a family member. If your financial goal is to reduce debt, having an accountability partner can provide valuable support.
8 | Take Action Now: Seize the Moment
Enough planning; it’s action time! Don’t wait for the perfect conditions—start now.
If you’re looking to enhance your financial knowledge, spend the next 10 minutes researching online courses or financial workshops – check out the range of articles we have available: TAG Tips – Investment & Wealth or on demand videos that you can watch as you are cooking dinner or taking some time for you: TAG Video Library.
Ready to turn those resolutions into reality? Consider exploring our Projections process for personalised guidance. Picture it like a roadmap—helping you chart your course, making your financial goals not just aspirations but tangible achievements. Don’t just dream; let’s turn those dreams into a plan and bring them to life. Reach out, and let’s embark on this journey together!
Watch the following 8 minute video which takes you through a real case study showing how retirement planning can make a real financial difference:
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2024. Please do not reproduce without the expressed written consent of the author.