The Secret To Making Financial Resolutions You'll Actually Keep

For 2014, a record number of consumers — 54% — are considering making a financial New Year’s resolution, according to a study by Fidelity Investments. One reason could be that 26% of survey participants say they are in a stronger financial situation than they were a year ago, compared to 19% last year.

If you also plan to make a financial resolution, you may have learned from past New Years that it’s much easier to make a resolution than to achieve one. The same study found that about three in ten people fall off the bandwagon.

So what’s the key to succeeding? Having a well-crafted goal.

“It’s easier for us to stay motivated with goals that have certain elements to them,” says Dr. Will Meek, a psychologist in Vancouver, Washington. “If we shape a goal well, it’s something we’ll continue to pay attention to and that will help us stay motivated. If we don’t shape it well, we’ll lose track of it and lose our motivation, and it won’t come to be.”

Below are tips on creating strong goals in general and around the top three financial resolutions people make — as well as an extra one we think you should add.

How To Formulate Strong Resolutions

1. Be positive.
Goals should be positively worded, says Dr. Meek. For instance, instead of saying something like, “We’re going to spend less money on frivolous things,” say instead, “We’re going to spend money only on things we truly value.”

2. Focus ruthlessly.
It’s easy at the New Year to become over-ambitious and think you’ll overhaul your entire life. But if you try to do too many things at once, you’ll be spread too thin. If you really want to make some changes this year, focus on one to three things that really matter to you, so you can put in the time and effort to achieve them.

3. Be specific.
Dr. Meek says the key elements of a strong goal can be summarized with the acronym SMART, starting with Specific.

“We want the goal to be as specific as possible rather than general. It keeps our attention on point, so we don’t say, ‘I’m going to be healthier’ but instead, ‘I’m going to eat two portions of vegetables two days a week,’” says Dr. Meek.

4. Make your goal measurable.
Goals also need to be Measurable, he says. “If we can track our progress, it can help with our motivation,” he says. If you have a goal of paying off $2,000 in credit card debt, you can easily break it down into four $500 payments, and get a boost as you watch yourself get 25%, then 50%, then 75% of your way to your goal.

5. Keep your resolution attainable.
“If [a goal is] so out of reach, that’s demotivating,” he says. If you know your tendency is not to be realistic about what you can accomplish in a given period of time, start tracking your time or looking back at your past accomplishments and how long they took you to achieve to get a sense of what’s possible.

6. Choose a goal that’s relevant.
Dr. Meek also recommends making your goal Relevant — “this is something that matters to me.” If you make a goal because it’s something you think you should do, but you personally don’t care much about, you’re much less likely to accomplish it. Part of this is just about framing, he says. While you might personally be bored by the idea of saving more, if you connect it to giving your child the best college education you can, that will be much more motivating.

7. Make it time-bound.

Finally, your goals should also be Time-bound, so they have a deadline, as that pressure will help you ensure you reach your goal. So, for instance, your goal of paying of $2,000 in debt should have a deadline of, say, April, so you know exactly what date you are aiming for.

Once You’ve Made Your Resolutions …

1. Check in regularly.
Make sure you don’t lose sight of your goal. Create a prompt for yourself that will always remind you of it. For instance, decide that every time you pay the mortgage, you’ll revisit your financial resolutions. Make sure you are doing a check-in at least once a month, and during that time, appreciate what you’ve already achieved. If you’ve made it this far, you can reach your goal.

2. Remind yourself of your motivation.
Once you’ve got all your resolutions set, document all your goals and your reasons for committing to them.

3. Don’t give in to downward spirals.
Finally, if you get off course, don’t beat yourself up or dwell on your mistakes. It will only make yourself feel worse, and you’ll end up even further off track. “When you slip up, get right back on as soon as possible,” Dr. Meek says.


How To Create Strong Financial Resolutions
For the third straight year, the Fidelity survey found that the top three New Year financial resolutions are saving more (54%), paying off debt( 24%) and spending less (19%), with the debt resolution passing “spending less” for the second most popular slot. It’s also increased threefold since 2010, when only 8% of respondents intended to pay off debt.

1. Saving More
If you intend to put away more money this year — whether for a rainy day, a down payment, a dream trip, your child’s college education or something else — Mary Beth Stojohann, certified financial planner and CEO and founder of Workable Wealth, says, “Always automate your savings. It’s hard to do a transfer on your own.” For instance, she recommends you set up automatic 401(k) or Individual Retirement Account contributions or automate a regular transfer from checking to savings.

2. Paying Off Debt
First, stop contributing more to your debt.  Also keep a little rainy day fund of at minimum $1,000 so an emergency expense doesn’t end up on your credit card.

Second, she says, don’t chip away at your debt by sending random payments toward each debt every month. Instead, send as much as you can toward your debt with the highest interest rate, and then pay the minimum on all your other balances. “That will save you the most money in the long run,” she says.

Finally, as with savings, automate those debt payments.

3. Spending Less
Set a threshold for your big purchases, suggests Storjohann. “It’s one thing to spend $20 at Target on a whim, but if you ever want to buy something $50 or $100 or more, give yourself at least a 24-hour waiting period to make sure you’re reflecting on the purchase,” she says. “Ask yourself what you’re giving up in lieu of this purchase. Is it going to be that you’re not going to go out for the next month? Where are you going to make up the difference? Because it’s money that hasn’t been accounted for.”

She recommends setting your threshold at $50 or $100, depending on your budget. During your waiting period, ask yourself why you want this item and what it means for you — whether you really need it or want it to keep up with the Joneses. If it’s more the latter, remind yourself, “When you’re comparing yourself to other people, you’re seeing their best self — not the financial issues behind-the-scenes that make you keep up with them,” she says.

4. Bonus Resolution: Earning More
When it comes to improving their finances, most people turn to “austerity” measures like paying off debt or spending less. But they often don’t consider making more money — and that resolution should be on a lot more lists, as it will make it easier for you to save more and pay off debt without having to spend so much time and energy on cutting back.

5. Get creative about ways to earn more. Start with your salary — check out websites like Payscale, Glassdoor and Salary.com to see what you could be earning for your position and experience in your city. Then, come up with a plan for wowing your boss, so you can make a strong case for a raise or some kind of increase in benefits — or, if you feel up for navigating what is a trickier dance, interview for other positions to get a counteroffer or even jump ship.

6. Finally, consider decluttering — and profiting from it. Sell gently loved valuables on sites like eBay or Craigslist, or take brand-name items to consignment shops.
http://www.forbes.com/sites/laurashin/2013/12/30/the-secret-to-making-financial-resolutions-youll-actually-keep/

4 Ways To Boost Your Willpower

Willpower is essential to the accomplishment of anything worthwhile ~Brian Tracy 

Usually when people hear the word “willpower,” they think about things like losing weight or quitting smoking. 

Willpower is certainly helpful when it comes to trying to break those bad habits, but it can also be very beneficial in other areas of your life as well. Willpower is something we are not born with, but must nurture and build up in ourselves. Once you learn to strengthen your willpower, it will give you a leg-up in achieving your goals. How? Because you will then be able to develop an unshakable focus and intensity in purpose! 

So how do you go about building your willpower? 

1. Commit! 

You must be completely and thoroughly committed to reaching your goals. If you are not absolutely committed to what you want to accomplish, there is no way that you will be able to develop sustaining willpower. It is very difficult to be successful in achieving your goals if you harbor second thoughts, excuses, or doubts. Be absolutely honest with yourself and find that “thing” that you truly want to see through until the end. Also keep in mind that simply having the desire to succeed at something does not guarantee accomplishment or success. It is entirely possible for you to desire many things without making a firm commitment. So, you need to be able to figure out that you really want and then plan to take the appropriate actions. 

2. Call on your inner strength. 

Building your willpower takes perseverance. This is a time for you to call upon your inner strength, you know, that extra push you need to get through the tough times. You have made the commitment to take a journey to strengthen your willpower and accomplish your most challenging goals. Great! The truth is, you will have many days of success, but there will also be those days that don’t feel as triumphant. It is on those not-so-good days that you will need to call upon your inner strength to help you get back on track. Every person has an inner strength and most have used it on more than one occasion. Trust in it, and in yourself, and it will get you through your rough spots. 

3. Get support. 

Building your willpower to achieve a goal is a great undertaking. Sometimes it can feel overwhelming. This is why it is so vitally important that you have good support in place during the journey. Share with a friend, significant other, or parent what you are trying to accomplish. In this way, when you hit a stumbling block, you will have someone who you have entrusted to help get you back on the right track. Your support system will help you through the hard times and will celebrate your successes with you. 

4. Consistency counts. 

If you have the willpower, for instance, to stop smoking for one week, that’s great and should indeed be celebrated. But the only way you are going to build your willpower up is to do whatever it takes to avoid a cigarettes today, again tomorrow, and forever. Then soon enough you will be celebrating two weeks, two months, two years, and then forever! 

This strategy applies to any goal that you are seriously devoted to accomplish. You must be willing to keep up the positive behavior all day, each and every day, no exceptions, and no excuses. 

Willpower can be a tricky thing. Everybody wants to develop it in order to break a bad habit or reach a particular goal. But in order to do so, you must be willing to go that extra mile and fully commit yourself to your success.

If you are committed, you are to be commended! As you achieve your goals, remember to celebrate your successes each and every day. 

What are you working on?

http://www.business2community.com/strategy/4-ways-to-boost-your-willpower-0583915?utm_source=rss&utm_medium=rss&utm_campaign=4-ways-to-boost-your-willpower

5 Ways To Use Your Smartphone For Better Fitness

Smartphones bring the world to your fingertips. You can send and receive emails on the road, pay bills as you walk down the street, and play Angry Birds as you stand in line at the grocery store. But does being able to take these activities with you help your level of physical activity?

These types of activities — emailing, keeping up with friends on social media, and playing games — are typically thought of as sedentary behaviors. A recent Kent State University study of college students aimed to determine the relationship between mobile phone use and the level of activity and fitness of those with these devices.

Turns out that high-frequency cellphone users were more likely than other users to report forgoing opportunities for physical activity in order to use their cellphones for sedentary behaviors. It also appears that high levels of phone use indicated a broader pattern of sedentary behavior in addition to cellphone use, like watching TV. Researchers concluded that cellphones, despite being easy to use while on the move, may disrupt physical activities and reduce fitness.

Like many people, I’m guilty of zoning out and surfing the internet on my phone instead of, say, vacuuming. But the cell phone doesn’t have to be a fitness and activity killer. Indeed, you can use it to your advantage to be more fit! 

Here are a few ways to do just that!

Mobile Motivator
There really is an app for everything, whether you want a stopwatch, a Tabata timer, a virtual trainer, or somewhere to log your workouts. Use your screen time to remind you of your fitness goals, not as time to step away from them.

Count Your Steps
Pedometers are great at letting you know how much you move daily, so get a pedometer app and start logging your movement. Set a goal to get up to 10,000 steps a day.

Set An Hourly AlarmIf your job is sedentary, use your phone to set an hourly reminder to get up and move around the office and stretch your limbs. Just make sure to put it on vibrate so you don't annoy your coworkers every hour. 

Move It
If you do want to mindlessly surf the web or check Facebook, make it a point to move when you do. Whether you’re walking around the house, doing calf raises or a few squats, linking exercise to your cell phone use will have you exercising more and mindlessly checking your phone less.

Connect With Workout Friends
Use your phone to check in with a workout buddy. Whether you’re planning to meet up for a workout or you’re seeking a push to get to the gym, workout buddies can work wonders in keeping you accountable, and social media is a great way to keep in touch.

http://www.babble.com/body-mind/5-ways-to-use-your-phone-for-better-fitness/mobile-motivator/