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Forget resolutions. Instead, look to SMART goals that you can accomplish in the new year.

Do one thing: It is time to flip the script on making resolutions and instead break down what you want to achieve in the new year into manageable, bite-sized goals.

Goodbye Resolutions, Hello Goals

We almost always have the best intentions when we turn the page on a new year and begin making plans for the things we hope to accomplish in the days and months ahead. In fact, millions of Americans, roughly one-third of people living in the U.S., make annual resolutions according to the Pew Research Center. Of those hopeful people, nearly two-thirds (roughly 61%) want something financial.

Start Small to Build Momentum

Instead of setting big, vague money resolutions, break them down into clear, manageable actions that you can actually follow through on.

Reframe Goals. To be more specific with your goals, try framing them like this:

• Don't just say, "I want to save more."
• Make a plan on HOW you will put away more by instead saying, "I will move $100 to my savings every time I get paid."

Make SMART Goals

You probably won't be surprised to find out that research shows us time and time again that most people give up on their resolutions within just a few months, if that long. That's why it's so much better and more productive to ditch the resolutions we make for ourselves in favor of goals. And those goals are even better when they are SMART, which stands for:

• Specific
• Measurable
• Achievable
• Relevant
• Time Bound

Essentially, this means that when you set a new goal using the SMART formula:

• You need to know exactly what you are aiming for.
• You need to know when you want to achieve the goal.
• Next, get strategic and break it down into smaller chunks that you can more easily manage, instead of aiming for the whole thing at once.

Why? Because if you try to do too much too quickly, the odds are in your favor to fail and not accomplish what you set out for.

Real Life Example of a SMART Goal

If you could really use a vacation or are looking to beef up your emergency fund by the end of 2026, here's how to turn it into a SMART goal.

SMART Goal Steps

To get started, here are some real-life steps:

• Take a few minutes and break it down on paper, a computer file, or a spreadsheet.
• To be more specific, measurable, and time-bound, you can commit to saving $5,200 (or any amount you choose) for an emergency fund or vacation by the end of December 2026.
• To make it achievable, it's helpful to break it down into smaller chunks.
• To do that, note that you will need to either save $100 a week for 52 weeks to achieve your goal OR break it down even more by day, save about $14.29 a day to reach your year-end goal.

Pro-tip: One of the best ways to save money is to set up a separate account and funnel funds from your main checking account to the other every time you get paid.

At IAA Credit Union, you can simplify your savings. Our Christmas Club and Vacation Club accounts are great ways to help you automatically save a little each paycheck throughout the year to save for your big summer plans or make holiday spending more financially manageable.

Similarly, our Goal Builder tool in Online & Mobile Banking helps you designate savings for specific goals and tracks your progress to help you reach your goal by the time you want.

Accountability

Just like with other goals, to eat at home more often or exercise more regularly for example, it really helps you achieve your objectives when you let someone else know, so you have a friend or spouse to help keep you on track when things get challenging and to celebrate with when you reach a milestone.

Science of Accountability

Science backs this up. Several controlled psychological studies and other behavioral research across several domains (including goal setting, exercise, and habit change) show that adding social accountability can significantly improve your goal attainment compared to people who privately track their progress without letting anyone else know.

Get It on Paper

And just like you have better recall of things you write down, think about a student taking notes for a test. Research from Dominican University in California shows that:

People who take the time to actually write down a goal have a significantly greater chance of reaching the objective than those who simply think about it.