From Vague Resolutions To Real Results: A Practical Money Makeover

We break down why money resolutions fail and turn them into specific, doable steps you can keep all year. From emergency funds and debt strategies to guilt-free spending and simple budgets, the focus stays on small actions and steady systems.

• causes of failed resolutions and vague goals
• how to make saving specific, small, and automated
• why emergency funds come before vacations and extras
• debt snowball vs avalanche and choosing one target
• setting a guilt-free spending allowance
• budgeting as a simple plan with pen and paper
• weekly reviews and adjusting after setbacks
• consistency over intensity and building habits
• free financial counseling and ongoing support at Neighbors

Subscribe to the Money Matters Podcast, and visit neighborsfcu.org slash financial wellness for more tools to help you build a strong financial future

Chapters

• 0:02 Kicking Off Money Resolutions
• 1:40 Why Resolutions Fail
• 2:26 Make Saving Specific And Small
• 4:20 Emergency Fund Before Vacations
• 5:05 One-Debt Focus: Snowball Or Avalanche
• 6:39 Allowances Beat No-Spend Promises
• 8:10 Rethinking Budgets As Simple Plans
• 9:50 Pen, Paper, And Free Tools
• 10:44 Staying On Track After January
• 12:52 Free Counseling And Ongoing Support
• 13:52 One Takeaway: Consistency
• 15:00 Blueprint Building Blocks & CTA

Transcript

SPEAKER_00: 0:02

Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need, and save the money you want. Now, here is your host, Miss Kim Chapman.

SPEAKER_02: 0:14

Hello, everyone, and welcome back to Money Matters. New Year. Is it a new you? So, what we're gonna talk about are those wonderful New Year's resolutions that we all like to make. You know, the financial ones. I'm gonna save more, I'm gonna stop spending, oh, I'm gonna get rid of all of my debt, right? Is that you? Have you made one of those resolutions? Where do you stand right now? Have you already fallen off the horse? That's okay. We're gonna talk about them today because we're gonna talk about is it something that you're doing wrong? And it's not really that you're doing something wrong. Maybe you just need a more specific plan. So Nicole Noah, one of our neighbor's employees, has stopped by so she can just kind of have this candid conversation with me. We're gonna talk about do this rather than that, to see if that will help get you back on track, help you to get on track so that you can make those resolutions. Hi, Nicole. Hi, Kim. How are you? So you had nothing better to do than come by and quiz me on this financial stuff today, right? Of course, on a Friday. But that's okay. Did you make a New Year's resolution, a financial New Year's resolution?

SPEAKER_01: 1:19

No. No. Okay. I never keep them.

SPEAKER_02: 1:21

You never keep them? No. See, and that's really why I pulled her in because she doesn't keep her resolution. So if it's not for your benefit, hopefully it's just for hers. Because again, we're gonna go through a little bit of uh maybe don't do this, but do that. So are you good?

SPEAKER_01: 1:38

I'm good. So let's start here. Why do people not stick to their financial resolutions? Like, what's happening?

SPEAKER_02: 1:44

Well, there are a couple of reasons. One is because sometimes they don't really have a plan. It's just kind of an idea and they base them on emotions. The other thing is that they are a little too rigid, they're not realistic. You know, it's like, hey, I'm gonna pay off all my debt by the end of the year and you owe a hundred thousand dollars, right? And they also don't really plan for life, right? We've got birthdays, we have car trouble, those things that come up and people just really don't take into account that. So, you know, that's what it's like.

SPEAKER_01: 2:15

So basically basically the goal is good, but the plan is unrealistic. That's it. Okay. So let's get into the most common goals and the do this instead of that thing. The most common one. I'm going to save more money this year. What's the problem?

SPEAKER_02: 2:32

Because it sounds good. We're basing that off of emotion. Again, we want to save more money, but you need to be specific. Gotta have a plan. So instead of saying I'm gonna save more money, actually narrow it down and say, I'm gonna start saving$25 per paycheck. And then even further than that, hold yourself accountable. Actually go ahead and put that in place and say, okay, Monday when I get to work, I'm gonna contact HR so that they can start the$25, or I'm gonna go in and set it up with my bank to have it automatically drafted. So again, just saying it and being vague is where we typically go wrong. But if you narrow it down and be really, really specific and set that goal, that will help you go a little bit further.

SPEAKER_01: 3:12

So what if somebody is like him? I can't do$25.

SPEAKER_02: 3:17

Not a problem. Can you do 10? Can you do five? Start where you are. I think sometimes we also self-sabotage because, yeah, a$25 and then we look at our bank account and we put the$25 in on Friday and then we have to take it back out on Monday, right? So if$25 is too steep, then bring it down to 10. The issue is that you want to get started, right? You can start small and then you want to be consistent. So again, probably automating it. So again, don't necessarily beat yourself up because, oh, I don't even think$5 is a value. Over time, that$5 will add up. And once you develop that habit, once you know every pay period or every so often, whatever that pattern is, you're contributing$5, you're gonna feel a little bit more motivated. And then when the opportunity brings itself around, you may be able to increase that to$6 to$10 and eventually get to$25. But start where you can. The important thing is to set a number and then have a plan to put it in action.

SPEAKER_01: 4:18

Okay. So what should people say for first? Retirement, vacations, emergency funds. What do you think?

SPEAKER_02: 4:25

What should they say for a face? I want to say for vacation, but is that practical? No, right? You want to save for emergencies because guess what? An emergency, it's not if, it's when, right? Vacation, not everybody takes a vacation. And not everybody actually retires, right? Some people, hey, I love my job. Am I gonna ever retire? I'm gonna die here in the studio. I'm kidding. Chad said that's not happening. But we all know that emergencies happen. So you want to have an emergency fund because it can be that buffer. It could be the difference between you having to go run and get into more debt, using a credit card, or even going to one of those horrible payday loan places.

SPEAKER_01: 5:04

Okay. So, next one. This is the year I pay off my debt. Why do people fall off track with that?

SPEAKER_02: 5:12

Say it again. Say it again and say it slowly. This is the year I pay off all my debt. And I think that's the key word that sometimes we have unrealistic goals, or maybe we're just not focused and organized. So, what you want to do instead of saying, I'm gonna pay off all my debt, start with that one. Pick one debt and then work on that. And then you have a couple of options, even when you pay pick that one debt. There's the snowball method, right? That's where you pick the smallest debt and then you pay that one off, and then you go and order to the next one. Or there's the avalanche where you pick the debt that has the highest interest rate, right? The one that's costing you the most. But start with that one debt, and then as you pay them off, you will be able to see progress, and then you're more than likely to stay on track because you can say, hey, I paid off one debt. Now let me work on debt number two, then work debt number three versus listing all 10 debts or all 100 debts and saying, Whoo, yeah, I've got 365 days to make this happen. Let's just see what happens. No, have a plan and use either that debt snowball or either the avalanche.

unknown: 6:26

Okay.

SPEAKER_01: 6:26

So I love be steady, not dramatic.

SPEAKER_02: 6:30

Yeah, you don't want to be dramatic. I mean, you know, money and drama, they kind of go hand in hand for a disaster.

SPEAKER_01: 6:38

Okay. So how about I'm done spending money, no more unnecessary spending. So this is the one people one thing people say with their whole chest on January 1st.

SPEAKER_02: 6:49

Yeah, and generally by the end of that first day, that's gone out the window. I mean, have you done that before? Have you said I'm not gonna spend any more money? And as soon as I said it, money is gone. Right. Yeah. I'm trying to, I don't even know if I've actually even been that foolish to say that I'm not gonna spend any more money because again, that doesn't work. And having financial goals or having financial resolutions is one column, is not about beating yourself up. You're not supposed to take all the fun out of it. So do this. Instead, set an allowance, right? Set an allowance for how much you think is reasonable for you to spend. But to say that you're not gonna spend anything, come on, who are we kidding? I mean, look in the mirror. Do you want to lie to yourself? Of course not. Right? We have to spend money, but set that allowance with something that aligns with what the rest of your financial goals or just life goals are.

SPEAKER_01: 7:42

So what I'm hearing is this is permission to have fun?

SPEAKER_02: 7:44

Yeah, you want to have fun. Because think about it. You will run out of gas and you'll be miserable in no time saying that you can't spend money. So have some flexibility, but set yourself some guidelines. Again, not a punishment, not a restriction, but giving yourself an allowance that says, okay, I'm gonna be in control of what I spend instead of just doing it all willy-nilly.

unknown: 8:09

Okay.

SPEAKER_01: 8:10

So budgeting, people either love it or they avoid it like the plague.

SPEAKER_02: 8:15

I think even when they love it, they sometimes can still want to avoid it. But see, budgeting has gotten such a bad reputation. People think of it as restriction, they think of it as punishment, they think of it as, oh, I can't. And while they have those good intentions in January that, oh, I'm gonna budget myself, I'm gonna restrict myself, that doesn't last because we just talked about fun. It takes all the fun. Think of it as taking control of your money, giving your money a specific purpose, right? Telling every dollar what it needs to do so that whatever your goals are, it'll work for you. That's all it is. It's a plan. We, you know, think about the rest of your financial plans for this year. Oh, we're gonna lose that weight. But stay tuned, that's gonna happen, I promise you, right? Or we're gonna do some spring cleaning, or we're going to go back to school. But in order for any of those things to happen, don't you have to have a plan? You do, right? And so that's all a budget is is having a plan for your money. But just make sure that plan is realistic, right? Just like we said, if you're gonna pay off your debt, don't start with all of them listed. Start with something small, have actionable steps, and then hold yourself accountable or have a partner, right? Often we need accountability. We need an accountability partner so that person that you can check in with to say, hey, let's see, are you saving money? How much did you spend on eating out, right? To make sure you're staying on track.

SPEAKER_01: 9:46

Okay, so what's your simplest budget structure?

SPEAKER_02: 9:50

Okay, so you don't need all of these expensive apps that are out there. Pen and paper literally will work fine. And at least for those of us that they still taught us how to write with pen and paper, right? Because what you need is just to know this is how much income I have, and these are my expenses. Here's what my allowance is, here's what it's gonna take for me to pay off this say one credit card, right? I need to pay$50 a month or$100 a month. You just need a plan with every paycheck. So have a plan, pen and paper. Hey, apps make life great. If you can find a great budgeting app out there for free, there's absolutely nothing wrong with that. But it doesn't take you paying a CPA to run a small household budget or a$1099 a month app when you can do this with simple old school pen and paper or a simple free app.

unknown: 10:43

Okay.

SPEAKER_01: 10:44

So now the real question: how do you stay on track after January? Because motivation does fade.

SPEAKER_02: 10:50

It does. I mean, for some of the people listening now, it's late January, early February. Have you already fallen off the track? Guess what? We all do it. That's that's life. What's life without the hiccups and the bumps, right? You're going to fall off track, probably with most things that we do. But that's what we learn our biggest lessons. We need to get back on. Reassess what happened, right? Were you a little bit, you know, overzealous? Did you say$25 and that's stretching it? Reassess. Do you need to take it down to$20, right? Maybe paying$50 a month for this debt needs to be brought down to$40. Or by the same token, maybe you feel like it's not moving fast enough and you have room to move it up to$60. So the key is to be consistent. It's okay that something happens and this week maybe you didn't do right, but get back on track next week. Review your budget, right? Life doesn't stay the same. Right. You know, and so maybe you need to revisit it because you've had something happen. Maybe you've changed jobs. Maybe there's a family dynamic that's changed. And so you need to account for that. Maybe you were still driving at paid for car, and now you have to go and get a new one. Or maybe there's a repair. So you just want to do regular check-ins and adjust your budget, adjust your plan. Our plans don't stay the same, right? This January, next January, we're not going to have the same plans. So your budget is going to be that guide. It's going to be a template. So you may have to modify it from here to there, but just stay consistent and keep at it. I think if you keep at it, you know, three months from now, you'll be able to see progress. Look at what works. And then if there's something that didn't work, figure that out. And then if you need help, that's why we have free financial counseling here at Neighbors. We have the blueprint for financial success.

SPEAKER_01: 12:45

So for someone that may be listening in there thinking, you know, this all sounds real good, but I don't know where to start. What do you tell them?

SPEAKER_02: 12:52

Come see me. Come to Neighbors. Again, I was just saying we have the free financial counseling right, free, right? You're trying to get your money straight, and we're offering something free. That fits right into your budget. I promise you it will. But we have the blueprint for financial success. And so we have the experts here that we can sit down, look at your finances, listen to you, listen to what your financial goals are, and help create a plan for you that you have input in, and that it'll be easy for you to go ahead and follow that plan. And then we're still here along the way. So if three months from now you're like, oh, it sounded great when I was in your office and I left here motivated and I was gonna go do ABC and then it just didn't happen or life happened and I need some more help, then you come back in. We're not just gonna give you a sheet of paper and say, hey, here, get your master's degree on your own. We're here to help you every step of the way. Because again, it's a plan, it's a process, right? Right.

SPEAKER_01: 13:50

Okay, so last question. If someone is if someone only remembers one thing from this episode, what should it be? Consistency.

SPEAKER_02: 13:59

Start small and be consistent, right? You don't have to try and climb Mount Everest if you want to start hiking, right? You don't have to run in a 26-mile marathon if you just want to start exercising. So the same thing. You don't have to tackle everything at once. So start small, baby steps, and then just be consistent.

SPEAKER_01: 14:23

I love it. Thank you for making it seem doable.

SPEAKER_02: 14:26

So now what we're gonna do now is go work on your resolution. Or maybe we need a different word, right? We're gonna have you start those actionable steps, right? Right. Create those small things, and then we'll be able to check in because we know that you can be successful, and so can you. So, hey, whether you've started a new year's resolution and you've already fallen off track, if you've never even got started, now's the time. Sit down, take those few moments, and look at those small things that you can do so that you can have a new you, a better year financially.

SPEAKER_00: 15:00

It's time for blueprint building blocks. Small changes that lead to big financial wins. Let's stack up for success.

SPEAKER_02: 15:10

Build systems, not willpower. Motivation fades, systems don't. If it matters, put it on autopilot. Make those goals specific. I'm sure you've heard me use that SMART acronym before. Save more just isn't a plan. Decide how much, how often, and where that money goes. And again, if I can't say it enough, start small and stay consistent. Small amounts build habits, and habit builds results.

SPEAKER_00: 15:40

That's a wrap on today's Blueprint Building Block. Stay on track with your financial journey. Subscribe to the Money Matters Podcast, and visit neighborsfcu.org slash financial wellness for more tools to help you build a strong financial future.