30 Dec 2022
A new year’s resolution to save more money? You’re not alone
Did you know that in 2018 over half of Americans started the year saying they wanted to save more money? Or that, after physical health goals, financial and career related resolutions are amongst the most common targets we have?
Have you ever wondered how many actually succeed in fulfilling their resolutions?
Studies show one-third give up in January with end-year success hovering around the 10% mark by the end of the year gulps. That said, by making a resolution, you’re already well ahead and far more likely to succeed than those that don’t.
So, what can we do to be in the 10% club?
Well according to behavioural researchers at Duke’s University the trick to ensuring end-year success with your resolutions is to keep them simple! Unfortunately, in our endeavour to begin the new year on what we hope is a strong note, we tend to make resolutions that have unrealistic goals, are difficult to keep track of, are easily forgettable or are too many in number!
And that’s why we’ve compiled a list of HAYAH’s top tips to keep your resolution to save more money, simple and effective:
1. Eliminate the decision to save.
Set up an automated payment each month, immediately after payday. Make an active choice once and free up your mental space for other things.
2. Use the 50/30/20 budget rule to manage spends
Whilst everyone’s circumstances are different, the 50/30/20 budget rule is a common methodology. The idea is to divide your income into three categories, spending:
50% on needs – things that are necessary for survival (housing, groceries, insurance, utilities, health care)
30% on wants – optional expenses (clothes, dining out, mobile phone plan, travel, gym membership)
20% on savings or clearing your debts
Check out the Ministry of Finance’s budgeting guide for a template to help identify your outgoings.
3. Have a simple, but specific and attainable goal
Don’t just aim to ‘save more’ but define a goal. Ok, being a millionaire by the end of 2023 might be out of reach, but ‘I want to save 10% of my salary’ or ‘I want to have USD 50,000 set aside for a house deposit in 5 years’ could be within your control.
Check out HAYAH’s own Smart Saver calculator to see how much your savings could be worth in the future if invested in funds.
4. Monitor your progress
Don’t forget to check how you’re getting on or you might fall into the 23% of people that forget their resolutions!
Some guides recommend setting a monthly reminder to review goals, but with a HAYAH savings plan, we’ll automatically monitor your progress and notify you if we think you need to take another look.
5. Be kind to yourself
Rome wasn’t built in a day, and sometimes things don’t work out the way we’d like them to. If you miss a goal or finish late – it’s not a failure – you can isolate it, move on, and make good decisions in the future!
If you’re still wrestling in your head about making a decision, just take a moment and think about Suzy Welch’s 10-10-10 rule:
“Consider how the course of action you want to take will make you feel ten minutes from now, ten months from now and ten years from now.”
What we can be sure of is that if you save, your future self will thank you for it.
Happy new year!