As the excitement of New Year’s resolutions begins to fade into the routine of daily life, many find themselves struggling to maintain the goals they set with such enthusiasm.
Andiswa Mojapelo, Head of Client Success at Momentum Velocity Club, offers some insightful strategies for ensuring that your resolutions lead to genuine change, particularly in the sphere of personal finance.
Mojapelo details that one of the most significant factors contributing to the failure of New Year’s resolutions is a misguided reliance on personal knowledge and intuition, especially when it comes to managing finances.
“When individuals look at goal-setting through the wrong lens or lack informed guidance, the right habits remain elusive. This self-reliance often leads to ineffective resolutions, particularly as they relate to money and finances,” she says.
Research conducted by Momentum illustrates this point; a staggering 76.5% of households depend on their own skills and experiences for financial advice, while a mere 9.2% consult certified financial planners.
This reliance underscores a critical gap that she insists must be addressed.
To encourage meaningful change, Mojapelo advocates for an approach known as habit stacking.
It is revealed that this technique promotes the idea that real, lasting transformation stems not from monumental actions but from the accumulation of small, consistent behaviours.
“Pairing new actions with existing habits can establish effective routines,” she states, emphasising that it is the regularity of these actions that leads to success.
Mojapelo also points to popular saving formulas, such as the 50:30:20 budgeting method, a guideline that allocates 50% of income to essentials, 30% to wants, and 20% to savings.
“While this formula is often shared online, it might not apply universally, especially in South Africa. Relying on generic formulas without personalised guidance can lead to frustration,” she cautions.
Be specific in your goals.
A key takeaway from Mojapelo’s guidance is the importance of specificity in goal-setting. Vague resolutions can derail progress, while clearly defined habits can fuel a commitment to long-lasting change.
“Financial management frequently involves making trade-offs, as money is a finite resource,” she explains.
“Being specific about how much you want to save and what for helps clarify your decisions to forego certain luxuries.”
Building accountability and community
She also explains that accountability plays a crucial role in habit retention and recommends partnering with a friend or joining a community of individuals who share similar goals.
“Having someone to encourage you can be incredibly motivating,” she notes.
“This is particularly essential for those entering the workforce for the first time or engaging in significant financial commitments, who may not have immediate support structures.”
Saturday Star