If you haven’t said it out loud, I bet you’ve at least thought it:
“What principles should I keep in mind as I set financial goals for the New Year?”
May I suggest three powerful resolutions?
- Resolved: I will take responsibility for my financial life.
Author Steven Covey defined responsibility as response-ability. He wasn’t just being cute with words. One of the most profound steps in human maturity is realizing we have the ability to respond to the world around us.
Fact is, we’re not just helpless vessels being tossed to and from on a sea of circumstances. We have agency. That means with intentionality and grit, we can affect our situations, even change them.
But until you embrace this mindset, you’ll tend to be passive. You’ll wait for things to “get better.” You’ll demand that some person or institution “do right” by you. I’ve seen people waste years waiting for a non-existent financial savior to come rescue them.
Don’t do that. Don’t play the victim. In 2025, realize you are response-able.
- Resolved: I will learn the delight of discipline.
Discipline is often seen as a dirty word. But rather than limiting us, self-discipline actually brings freedom and joy. Consider: By resisting the urge to splurge (as a way of life), you get to avoid the terrible burden of debt. You also get to reap the rewards of greater wealth later.
And there’s also this grim reality: If you refuse to discipline yourself…if the only control on your spending is your credit card’s limit, some financial institution will gladly discipline you in the worst sense of the word. They’ll demand payment of your debts at an obscenely high interest rate.
That’s when many discover a miserable truth: a higher spending limit isn’t the path to greater freedom…it’s often a long-term prison sentence.
- Resolved: I will pay myself first and spend only what is left over.
This is where true financial freedom begins. Let me clarify what this looks like.
Paying yourself first means putting money into savings each pay period—before you spend the first penny of your paycheck. Set up an automatic draft, so that that 10% (or 15 or 20% if you can) never sees the inside of your checkbook.
Or it may mean—if your company offers you some sort of retirement savings plan–maxing out your 401(k) and taking full advantage of any employer matches.
The rule: Save first or it will never get done.
Spending only what is left over means no more credit card (or any other consumer) debt. No more carrying a balance. If you can’t pay off your credit card statement in full each month, put your card away. Embrace this rule: If we can’t buy something with money we’ve either saved in the past or earned this month, we simply don’t make that purchase.
2024 is done. You can’t change anything about it. But you can make 2025 your best financial year ever!
I wish that for you and yours.
And speaking of the new year (and better financial goals, strategies, and habits), why not make 2025 the year you finally create a wise plan for turning your retirement savings into steady retirement income?
I’ve got a free tool that can get you started. It’s called the RISA (i.e., Retirement Income Strategy Assessment). In less than 10 minutes, it can show you what kind of retirement income plan best aligns with your personality, goals, and lifestyle. There’s no obligation, and you can access it by emailing me (bmoore@argentadvisors.com).
Then if you want to discuss your results further, give me a call!
Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.
