Making new year's financial resolutions last

As the new year kicks into full swing, many South Africans will be setting new year’s resolutions – including financial and investment goals – to improve their future. Nomi Bodlani discusses strategies you can apply to make your financial resolutions stick this year and beyond.

Most people consider the start of a new year the perfect time to set financial goals; however, without the right support, it becomes easy to give up when faced with hardship.

Recent research by PLOS ONE – a peer-reviewed science and medicine journal – on the success rate of new year’s resolutions suggests that not all resolutions are equally effective. The research finds that people who set approach-oriented goals and receive support along their journey are more likely to achieve them than those who set avoidance-oriented goals or do not receive support.

Approach-oriented goals focus on taking active steps towards an outcome (e.g. save a stated portion of your salary towards an emergency fund, which you aim to accumulate within a fixed time period), while the passive latter relies on self-restraint and the avoidance of undesired outcomes (e.g. avoid unbudgeted consumption or spending excess cash). “Support” can be as simple as identifying someone to encourage you to remain committed to achieving your goal, or more structured, in the form of partnering with a financial adviser.

Read full article on https://www.allangray.co.za/latest-insights/personal-investing/making-new-years-financial-resolutions-last/

January 23 2025 By Nomi Bodlani - Allan Gray