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| APTOS LIFE FEBRUARY 16, 2022 10

Resolution Heat Check

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How many of you made a New Year’s resolution this year? I’m guessing probably around 50%. And as we near the end of February, how many of you have already broken your New Year’s Resolution at least once? Polls and studies indicate that around 80% of people who set New Year’s resolutions fail to keep them. That’s a high number, and I know I’m personally guilty of failing to keep New Year’s resolutions. Why are we so bad at keeping them— or just goals in general? Below are few things to consider to help increase your likelihood of setting a financial goal and sticking to it.

Get Very Specific

Common New Year’s resolutions tend to revolve around health and fitness. Here are two I’m sure you’re familiar with: “I’m going to exercise more” and “I’m going try to be healthier.” Both are good in theory. However, the chance of someone keeping these goals are slim. Why? Because they are super vague and unclear, so it’s hard to know when you have accomplished these goals. Let’s look at this alternative goal as an example: “My goal is to run in a 10k that’s scheduled for April. To prepare, I’m going to join a running club that meets three times a week and train with them.” You see the difference? This goal is clearly defined, has a deadline, and has plan to help you meet the goal along with hopefully someone or something that keeps you accountable.

The same logic can be used when it comes to defining financial goals. Instead of a vague resolution saying, “I’m going to save more in 2022,” try something like, “My goal in 2022 is to be contributing 10% of my salary to my company’s retirement plan by the end of the year. To get there, I’m going to start by contributing 4%, and then increase my contribution by 2% each quarter until I reach 10%.” This is a clearly defined goal with a deadline and a plan.

Don’t Procrastinate

We often find it easier to just put something off for another day versus trying to get started today. One of the biggest reasons is what I discussed above: our goals aren’t clearly defined. If our goals aren’t clearly defined, then what exactly are we trying to accomplish today? Another reason is we aren’t held accountable for working our way toward achieving our goals. Employing the help of a friend or family member in keeping you accountable toward your goals can go a long way. You’ll want someone who is going to be supportive, but not ultimately interested in hearing excuses time and time again.

As a financial planner, I help clients take their financial goals from vague to clearly defined and measurable. My job is to listen to what you are trying to achieve and help you create a plan to get there given your individual circumstances. My job is to also hold you accountable for making progress toward your goals. Through regular meetings we continue to refine and evaluate your goals. Most

Soren E. Croxall people find that knowing that

Financial Advice someone is going to be checking in on their progress is ultimately beneficial toward working to achieve their specific goals.

A few things to consider to help increase your likelihood of setting a financial goal and sticking to it.

Don’t Get Discouraged

Encountering a bump in the road or something unexpected that thwarts progress toward specific goals can be discouraging. All too often, people give up on a goal completely when this happens. Instead of giving up completely, take a step back and look to refine or redefine your goals accordingly. Take for example the goal of running in a 10k by April. Let’s say in March you accidently trip over a curb and sprain your ankle, which causes an interruption to your training schedule. You might be tempted to just toss out your goal completely and give up. Instead, you could refine your goal to state that after your foot heals, you’re going to continue to train and compete in a 5k instead of a 10k in April. It’s better to complete 50% of your goal vs. giving up completely, right?

The same can be said for financial goals. Often financial goals are put on the backburner because people are afraid of failing to meet them. Even partially achieving set goals is better than not trying at all. Let’s say you have a financial setback that causes you to not be able to increase your company retirement plan contributions by your planned 2% per quarter in the goal outlined above to get you to the 10% contribution rate by the end of the year. If you only increased it by 1% per quarter, you would still get to a 7% contribution rate by the end of the year. That is not a failure. You made progress and should be encouraged, not discouraged.

New Year’s resolutions that relate to financial matters can be easy to put off. But resolving to target and track your progress can give you a feeling of achievement and be both financially and mentally rewarding.

Soren Croxall, CFA, CFP® is a registered representative of LPL. Financial Securities and Advisory Services offered through LPL Financial, member FINRA/SIPC, a Registered Investment Advisor. LPL Financial and Croxall Capital Planning do not provide tax or legal advice. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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