Paul Sullivan, in his weekly NY Times column, Wealth Matters, writes about keeping financial New Year’s resolutions. His column begins as follows:
THE New Year’s resolutions are still new. And a cynic — or realist, given past performance — might say many of them will fail by spring, if not sooner.
Even so, the resolutions return every year, particularly the big three: getting in shape, becoming better at work and improving our financial lives.
All three have something else in common: There are financial and economic consequences when someone fails to keep them, just as surely as there are financial and economic benefits to success. And people who can tie their resolutions to real consequences, psychologists, doctors and even health club owners say, have the best chance of success.
“People typically succeed because their ‘why’ is bigger than their ‘but,’” said Elizabeth Lombardo, a wealth psychologist in Chicago.
As an example, she said, “I want to work out, but I have no time.”
Getting past the “but” is not easy. That’s why so many of the resolutions fail. To succeed, the resolution makers are going to need a combination of more help, lower expectations and bigger consequences than most imagine.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.