If you have set yourself a personal financial goal for 2024, you’re certainly not alone...
According to recent research, financial goals were the fourth most popular type of New Year’s resolution set by Britons for 2024, after health-related goals – exercising more, losing weight and improved diet – which ranked #1 thru #3.1
But what motivates us to set goals at the start of the year? Why do we suddenly strive to achieve more every 1st of January?
The psychology behind January goal-setting
In our modern lives, we are heavily influenced by the ‘now’, spending significantly less time focused upon longer term considerations. However, in January these natural biases tend to be a little less powerful.
The start of the year helps us take a longer-term view, presenting us with an opportunity when it comes to our aspirations and the plans needed to achieve them.
You may have experienced something similar while you have been away on holiday. A change of scenery and routine, usually while spending more time with our families than our work colleagues, reduces our focus on our normal work and domestic day-to-day tasks and duties to give us a different perspective.
With the time and space afforded by mentally stepping away from the everyday, this process allows us to more readily reflect upon our purpose, our aspirations for ourselves and what we wish for our loved ones.
The most common financial goals in 2024
So, what are Britons’ top financial goals in 2024? Let’s take a look at this list from Moneybox of the UK’s most common financial goals2:
1. building up a rainy-day fund
2. investing
3. regularly making a budget
4. paying down debt
5. saving to go travelling
Did you see your goal in the above list? If the answer is ‘yes’, you have made a great start. Setting clear goals gives you the foundation to create an effective financial plan which will help you to achieve your objectives, both in the near and longer term.
Sticking with your Goals
While it’s easy enough to set a goal, the hard part is of course sticking with it! With as many as 80% of people giving up on their New Year’s resolutions by the 31st of January3, it is advisable to have some strategies to hand for those moments when everyday tasks compete for your attention and your resolve is put to the test.
As professionals with a wealth of experience helping people just like you to grow their financial resilience and prospects, we have a handy tip which can help you to stay motivated…
Our advice is to join in with others. Finding a group of like-minded people who are similarly determined to achieve their financial goals (be that saving more into their pensions or clearing debt) and thus improve their financial wellbeing can be extremely helpful. You could try seeking out an accountability partner, maybe a family member or friend, and work on establishing positive money habits together. Then, you could set dates throughout the year to check in with one another.
Another strategy is to seek out expert advice. Consider meeting with an experienced financial adviser, who will ask you questions about the goal you have set (for example, the timeline you envision to achieving your goal). They will then create a bespoke financial plan based on your financial circumstances and aspirations.
Your adviser can help you to understand the savings and investment options available to you and help you to make better financial decisions.
Your financial adviser will ensure you are strategically aligned with your objectives, track your progress towards your goals and regularly review your plans to make sure they are in keeping with your circumstances and what you want to achieve.
At the Financial Options Group, we offer expert advice that can help you to turn intentions into concrete action. Simply contact us on 0161 764 9944 to find out more.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested. Tax treatment varies according to individual circumstances and is subject to change.
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