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For example, defining a goal such as "increase monthly investment contributions by 5% over six months" provides clarity and motivation.

Why Setting Financial Resolutions Matters

Establishing financial resolutions at the start of the year acts as a personal commitment to change behavior and achieve specific outcomes. It fosters discipline, encourages thoughtful planning, and enhances awareness of financial habits. Using the SMART framework ensures that objectives are realistic and within reach.

However, adherence is often challenging. It is normal to experience setbacks or drift away from goals. The key to sustained progress lies in creating mechanisms for regular review and adjustment.

Tips for Maintaining Momentum

To stay committed throughout the year: