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The “50/30/20 Rule”: Is It the Holy Grail of Budgeting?

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Budgeting can feel overwhelming, especially when you’re juggling bills, savings goals, and the occasional splurge. If you’ve ever searched for a simple way to manage your money, you’ve probably come across the 50/30/20 rule. This popular budgeting method promises to make financial planning straightforward, but is it really the holy grail of budgeting? Understanding how the 50/30/20 rule works—and whether it fits your lifestyle—can help you take control of your finances without feeling restricted. Let’s break down what this rule is, why it’s so popular, and whether it’s the right fit for you.

1. What Is the 50/30/20 Rule?

The 50/30/20 rule is a budgeting framework that divides your after-tax income into three main categories: 50% for needs, 30% for wants, and 20% for savings or debt repayment. The idea is to simplify budgeting by giving you clear, easy-to-follow guidelines. Needs include essentials like rent, groceries, utilities, and insurance. Wants to cover things like dining out, entertainment, and vacations. The final 20% goes toward building savings, investing, or paying off debt. This method is popular because it’s easy to remember and doesn’t require tracking every single expense. For many, it’s a breath of fresh air compared to more complicated budgeting systems.

2. Why Has the 50/30/20 Rule Become So Popular?

The 50/30/20 rule has gained traction because it’s accessible and flexible. Unlike strict budgets that require you to account for every dollar, this rule gives you room to breathe. It’s especially appealing for beginners or anyone who feels overwhelmed by traditional budgeting. The simplicity of the 50/30/20 rule means you can quickly assess your spending and make adjustments without getting bogged down in details. Additionally, it’s adaptable to various income levels and life stages, making it a go-to choice for many individuals seeking to get their finances in order.

3. How to Apply the 50/30/20 Rule to Your Finances

Applying the 50/30/20 rule starts with calculating your after-tax income. Once you know your monthly take-home pay, multiply it by 0.5 to determine your needs budget, by 0.3 for wants, and by 0.2 for savings or debt repayment. For example, if you bring home $4,000 a month, you’d allocate $2,000 to needs,$1,200 to wants, and $800 to savings or debt. Review your current spending to see where your money is going. If you’re spending more than 50% on needs, look for ways to cut back or increase your income. If your wants are eating into your savings, consider what you can trim. The 50/30/20 rule isn’t about perfection—it’s about creating a sustainable plan that helps you reach your goals.

4. The Pros: Why the 50/30/20 Rule Works for Many

One of the most significant advantages of the 50/30/20 rule is its simplicity. You don’t need fancy spreadsheets or budgeting apps to get started. The clear categories make it easy to identify problem areas and make adjustments quickly. This rule also encourages a healthy balance between enjoying life and planning for the future. By setting aside 20% for savings or debt, you’re building a financial safety net without feeling deprived. The 50/30/20 rule can also help couples or families get on the same page about their finances, as the guidelines are straightforward to discuss and understand. For many, this method is a practical way to build better money habits.

5. The Cons: Where the 50/30/20 Rule Falls Short

While the 50/30/20 rule is a great starting point, it’s not perfect for everyone. If you live in a high-cost area, your needs may consume more than 50% of your income, making the rule difficult to follow. Individuals with substantial debt or ambitious savings goals may find that 20% isn’t sufficient. The rule also doesn’t account for irregular expenses, like car repairs or medical bills, which can throw off your budget. Some critics argue that the 50/30/20 rule oversimplifies personal finance and doesn’t encourage detailed tracking, which can be important for those with complex financial situations.

6. Customizing the 50/30/20 Rule for Your Life

The beauty of the 50/30/20 rule is that it’s a guideline, not a strict law. If your needs are higher, you might adjust to a 60/20/20 split, or if you want to save aggressively, you could try 50/20/30. The key is to use the 50/30/20 rule as a starting point and tweak it to fit your unique situation. Track your spending for a month or two to see where your money actually goes, then adjust your percentages as needed. Remember, the goal is to create a budget that works for you, not to fit your life into a rigid formula. Flexibility is essential for long-term success.

Rethinking the “Holy Grail” of Budgeting

The 50/30/20 rule is a powerful tool, but it’s not a one-size-fits-all solution. It offers a simple, flexible framework that can help you get started with budgeting and build better financial habits. However, your financial journey is personal, and the best budget is the one you can stick to. Use the 50/30/20 rule as a foundation, but don’t be afraid to adapt it as your needs and goals change. Ultimately, the real “holy grail” of budgeting is finding a system that helps you live well today while preparing for tomorrow.

What’s your experience with the 50/30/20 rule? Do you follow it, or have you found another budgeting method that works better for you? Share your thoughts in the comments!

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9 “Savings Challenges” That Are Actually Fun (And Not Impossible)

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Saving money can feel like a chore, especially when every dollar already has a job. But what if building your savings didn’t have to be boring or impossible? Enter savings challenges—a creative, interactive way to grow your bank account while having a little fun along the way. These challenges aren’t just for the ultra-disciplined; they’re designed for real people with busy lives and tight budgets. Whether you’re saving for a vacation, an emergency fund, or just want to see your balance grow, these savings challenges can help you get there. Let’s explore nine savings challenges that are actually fun—and totally doable.

1. The 52-Week Savings Challenge

The 52-Week Savings Challenge is a classic for a reason. You start by saving $1 in the first week,$2 in the second week, and so on, increasing your deposit by $1 each week. By the end of the year, you’ll have saved $1,378. This savings challenge is great because it starts small and builds momentum, making it easier to stick with. If you want to make it even more fun, try doing it in reverse—start with the highest amount and work your way down as the year progresses.

2. The No-Spend Weekend

The No-Spend Weekend is perfect if you’re looking for savings challenges that don’t require a long-term commitment. Pick one weekend a month where you don’t spend any money outside of essentials. Use the time to enjoy free activities like hiking, reading, or hosting a game night at home. Not only will you save money, but you’ll also become more mindful of your spending habits.

3. The Spare Change Jar

This old-school savings challenge is as simple as it gets. Every time you have spare change, drop it into a jar. If you rarely use cash, many banks and apps now offer digital “round-up” features that automatically transfer the difference from your purchases into your savings account. Over time, those small amounts add up, and you’ll be surprised at how much you can save without even noticing.

4. The 26-Week Biweekly Challenge

The 26-Week Biweekly Challenge is a great fit if you get paid every two weeks. Save a set amount from each paycheck—say,$20,$50, or whatever works for your budget. By the end of the year, you’ll have a tidy sum set aside. This savings challenge aligns with your pay schedule, making it easier to automate and stick to.

5. The Weather Savings Challenge

Add a twist to your savings routine by tying it to the weather. Each week, check the highest temperature in your city and save that amount. If it’s 75 degrees, you save $75. If that’s too steep, use the last digit or round down. This savings challenge keeps things interesting and unpredictable, and it’s a fun way to get the whole family involved.

6. The 5-Dollar Bill Challenge

Every time you receive a $5 bill, set it aside. It sounds simple, but you’ll be amazed at how quickly those fives add up. This savings challenge works best if you use cash regularly, but you can adapt it for digital spending by transferring $5 to savings every time you make a non-essential purchase.

7. The 30-Day Savings Challenge

For a quick boost, try the 30-Day Savings Challenge. Each day, save an increasing amount of $1 on day one,$2 on day two, and so on. By the end of the month, you’ll have $465 saved. This savings challenge is intense but short, perfect for kickstarting a new savings goal or funding a special purchase.

8. The Subscription Audit Challenge

Take a month to review all your subscriptions—streaming, magazines, apps, and more. Cancel anything you don’t use or need, and transfer the amount you would have spent into your savings account. This savings challenge frees up cash and helps you become more intentional with your spending.

9. The “Found Money” Challenge

Anytime you receive unexpected money—rebates, gifts, bonuses, or even loose change in the laundry—put it straight into savings. This savings challenge turns windfalls into progress toward your goals, and it’s a great way to build your emergency fund without feeling deprived.

Making Saving a Game, Not a Guilt Trip

The best savings challenges are the ones that fit your lifestyle and keep you motivated. By turning saving into a game, you’re more likely to stick with it and reach your goals. Whether you choose one challenge or mix and match a few, the key is to make saving money feel rewarding, not restrictive. Remember, even small amounts add up over time, and the habit you build is just as valuable as the dollars in your account.

What savings challenges have you tried, and which worked best for you? Share your experiences in the comments!

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7 Signs You’re Budgeting for the Wrong Life

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Budgeting is supposed to be your financial roadmap, guiding you toward your goals and dreams. But what if your budget is actually steering you in the wrong direction? Many people find themselves frustrated, stressed, or even resentful about their finances, not because they’re bad at budgeting, but because they’re budgeting for the wrong life. If your money plan doesn’t reflect your real values, needs, and aspirations, it’s easy to feel stuck or dissatisfied. Let’s explore seven clear signs you might be budgeting for the wrong life, and how you can get back on track.

1. You Dread Looking at Your Budget

If the thought of reviewing your budget fills you with anxiety or dread, it’s a major red flag. Budgeting for the wrong life often feels like wearing shoes that don’t fit—uncomfortable and restrictive. Your budget should empower you, not make you feel trapped. If you’re constantly avoiding your budget or feeling guilty every time you check it, it’s time to ask yourself if your spending plan truly matches your lifestyle and priorities. A healthy budget should feel like a helpful tool, not a punishment.

2. Your Budget Ignores What Makes You Happy

Are you cutting out all the things that bring you joy just to hit arbitrary savings goals? If your budget leaves no room for hobbies, social outings, or small indulgences, you might be budgeting for the wrong life. Financial experts agree that sustainable budgets include “fun money” for the things that make life enjoyable. If you’re sacrificing happiness for the sake of a rigid plan, it’s time to reassess. Remember, a budget should support your well-being, not just your bank account.

3. You’re Copying Someone Else’s Financial Plan

It’s easy to fall into the trap of following a friend’s or influencer’s budgeting method, especially when it seems to work so well for them. But what works for someone else might not work for you. If your budget is a carbon copy of someone else’s, you’re likely budgeting for the wrong life. Your financial plan should reflect your unique goals, values, and circumstances. Take inspiration from others, but always tailor your budget to fit your own needs.

4. Your Goals Feel Out of Reach or Irrelevant

If your budget is built around goals that no longer excite you—or worse, goals that feel impossible—it’s a sign you’re budgeting for the wrong life. Maybe you set a target to buy a house because everyone else is doing it, or you’re saving for a big trip you don’t actually want to take. When your goals aren’t meaningful, it’s hard to stay motivated. Revisit your financial objectives regularly and make sure they still align with your current dreams and values.

5. You’re Constantly Breaking Your Own Rules

Do you find yourself repeatedly overspending in certain categories, even though you’ve set strict limits? This could mean your budget isn’t realistic for your actual lifestyle. Budgeting for the wrong life often leads to frustration and guilt when you can’t stick to your own rules. Instead of beating yourself up, use these moments as feedback. Adjust your budget to better reflect your real habits and needs, rather than forcing yourself into a mold that doesn’t fit.

6. You Feel Envious of Others’ Lifestyles

If you’re constantly comparing your life to others and feeling envious, your budget might be out of sync with your true desires. Social media can make it tempting to chase after someone else’s version of success, but this often leads to dissatisfaction and overspending. Budgeting for the wrong life can leave you feeling like you’re always missing out. Focus on what genuinely matters to you, and let your budget reflect those priorities.

7. Your Budget Doesn’t Adapt to Life Changes

Life is full of surprises—new jobs, moves, relationships, or even just changing interests. If your budget is rigid and doesn’t evolve with your circumstances, you’re likely budgeting for the wrong life. A good budget is flexible and responsive, allowing you to adjust as your needs and goals shift. Regularly review and update your budget to make sure it still fits your current reality.

Realigning Your Budget with Your True Life

Budgeting for the wrong life can leave you feeling frustrated, unfulfilled, and disconnected from your own goals. The good news? It’s never too late to realign your budget with the life you actually want. Start by reflecting on your values, passions, and long-term dreams. Make sure your financial plan supports the things that matter most to you, not just what you think you “should” be doing. When your budget reflects your authentic self, managing money becomes a source of confidence and joy, not stress.

Are you worried you might be budgeting for the wrong life? Share your experiences or tips in the comments below!

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7 Personal Finance Questions You Should Ask On The First Date

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First dates are usually filled with excitement, nervous laughter, and the hope of finding a real connection. But while you’re busy deciding if you like their sense of humor or taste in music, personal finance is another crucial topic that often gets overlooked. Money may not be the most romantic subject, but it’s one of the most important factors in long-term compatibility. According to a 2023 study by Ramsey Solutions, money issues are the second leading cause of divorce in the U.S. That’s why asking the right personal finance questions early on can save you from future heartbreak and help you build a relationship based on trust and transparency. If you’re serious about finding a partner who shares your values, here are seven personal finance questions you should consider asking on the first date.

1. How Do You Feel About Budgeting?

Budgeting is the foundation of good personal finance. Some people love tracking every dollar, while others prefer a more relaxed approach. Asking about budgeting on the first date isn’t about prying into someone’s bank account—it’s about understanding their attitude toward money management. If your date is passionate about budgeting, it might signal that they’re disciplined and future focused. On the other hand, if they avoid the topic or admit to “winging it,” that could be a red flag if you’re looking for financial stability. Remember, there’s no right or wrong answer, but knowing where you both stand can help you avoid misunderstandings down the road.

2. What Are Your Financial Goals?

Everyone has dreams, but not everyone has a plan to achieve them. Asking about financial goals is a great way to learn what motivates your date and whether your visions for the future align. Are they saving for a house, planning to travel the world, or working toward early retirement? Their answers can reveal a lot about their priorities and ambition. According to NerdWallet, setting clear financial goals is key to building wealth and reducing stress. If your goals are wildly different, it’s better to know sooner rather than later.

3. How Do You Handle Debt?

Debt is a reality for many people, whether it’s student loans, credit cards, or a car payment. The important thing isn’t whether your date has debt, but how they manage it. Are they actively paying it down or ignoring it and hoping it goes away? This question can open up a conversation about financial responsibility and honesty. It’s also a chance to discuss your own experiences and attitudes toward debt, which can foster empathy and understanding. Everyone’s financial journey is different, but transparency is essential for building trust.

4. What’s Your Approach to Saving and Investing?

Saving and investing are crucial components of personal finance, and everyone has their own strategy, or lack thereof. Some people are diligent about contributing to a 401(k) or IRA, while others keep their savings in a regular bank account. Asking about saving and investing habits can help you gauge your date’s financial literacy and long-term planning skills. You might even share resources or learn together if they’re new to investing.

5. How Do You Like to Spend Your Money?

Spending habits can make or break a relationship. Some people love splurging on experiences, while others prefer to save for a rainy day. By asking how your date likes to spend their money, you’ll get insight into their values and lifestyle. Do they prioritize dining out, travel, or hobbies? Or are they more focused on building an emergency fund? This question isn’t about judging—it’s about understanding what makes your date happy and whether your spending styles are compatible.

6. What’s Your Philosophy on Splitting Expenses?

Money can be a sensitive topic, especially when it comes to sharing expenses. Some people believe in splitting everything 50/50, while others are comfortable with one partner paying more. Discussing this early on can prevent awkwardness and resentment later. It’s also a chance to talk about gender roles, expectations, and fairness in relationships. Being upfront about your preferences shows maturity and respect for your date’s perspective.

7. How Do You Handle Financial Surprises or Emergencies?

Life is full of unexpected expenses, from car repairs to medical bills. How your date handles financial surprises can reveal a lot about their resilience and preparedness. Do they have an emergency fund? Are they comfortable talking about setbacks, or do they avoid the topic? This question can lead to a deeper conversation about risk tolerance, insurance, and planning for the unknown. It’s not about having all the answers, but about being willing to face challenges together.

Building a Strong Financial Foundation Together

Talking about personal finance on the first date might feel a little awkward, but it’s one of the best ways to set the stage for a healthy, lasting relationship. By asking these seven personal finance questions, you’re not just looking for the “right” answers—you’re opening the door to honest communication, shared values, and mutual respect. Remember, financial compatibility doesn’t mean you have to agree on everything, but it does mean you’re willing to work together toward common goals. So next time you’re out with someone new, don’t be afraid to bring up personal finance. It could be the start of something truly special.

What personal finance questions have you asked (or wish you had asked) on a first date? Share your stories in the comments below!

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7 Signs Your Budget Is Running Your Life—and How to Take Back Control

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When it comes to personal finance, having a budget is essential. It helps you plan, save, and ensure you’re making the most of your money. But if you’re not careful, your budget can take on a life of its own, controlling your decisions rather than guiding them. Sometimes, a budget can go from being a helpful tool to a source of stress and limitation. If you feel like your budget is running your life, it might be time to reassess and take back control. Here are seven signs that your budget may be overstepping its bounds, and what you can do to regain your financial freedom.

1. You’re Constantly Stressing About Every Dollar

While budgeting is meant to give you peace of mind, if you find yourself stressing about every single dollar, it might be a sign that your budget is becoming too rigid. If every purchase feels like a mini-crisis or you’re afraid to spend on anything that isn’t “essential,” your budget might not be serving you the way it should.

Financial stress can take a toll on your mental health, and it’s important to remember that a budget should support your goals, not make you anxious. To take back control, try adjusting your categories to allow for some flexibility, like including “fun money” or an “emergency fund” to cushion life’s little indulgences. Your budget should work with you, not against you.

2. You’re Avoiding Social Events Due to Money Concerns

If you’re saying “no” to invitations or skipping social events because you’re worried about how they’ll impact your budget, that’s a red flag. A well-balanced budget should allow for occasional fun and socializing—it’s a part of life! By denying yourself experiences, you risk not just overspending but also missing out on important connections and memories. Revisit your budget and see where you can allocate funds for socializing or entertainment. If your budget is too restrictive, it might be time to adjust your priorities to allow for a healthier balance between saving and enjoying life.

3. You’re Sacrificing Necessities to Stick to Your Budget

Budgets are meant to help you manage your money, but if you’re cutting back on basic needs to stick to your budget, something is wrong. Skimping on essentials like groceries, health care, or housing can lead to bigger problems down the line. If your budget is making you sacrifice your well-being, it’s time to rethink it. Instead of eliminating crucial expenses, reallocate funds from less important categories or reduce discretionary spending. A healthy budget allows you to balance short-term needs with long-term goals, so don’t let it push you into unhealthy compromises.

4. You’re Focusing Too Much on the Small Stuff

While it’s important to track your spending, obsessing over minor expenses like a coffee here or a snack there can keep you from seeing the bigger picture. If you’re too focused on small expenditures, you might be missing out on making bigger, more impactful financial decisions. When you’re so focused on trimming the little things, you might overlook larger opportunities for saving or investing. To regain control, shift your focus to bigger financial goals—like paying off high-interest debt or building an emergency fund—while still being mindful of unnecessary spending. This approach will help you avoid getting lost in the weeds and allow you to see your progress more clearly.

5. You Feel Guilty Every Time You Spend Money

If you feel guilty every time you make a purchase, no matter how small, it’s a sign that your budget may be too restrictive. Feeling guilty can lead to unhealthy financial behaviors, like over-saving or avoiding necessary purchases. A good budget allows for both saving and spending, helping you make informed decisions without guilt. If guilt is creeping into your spending habits, it’s time to reevaluate your budget. Try to set aside a designated amount for guilt-free spending—this way, you can enjoy life while still staying on track with your financial goals.

Stop Saving Money

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6. You’ve Stopped Saving for the Future

One of the key purposes of a budget is to help you save for the future. However, if your budget is so tight that you’re unable to contribute to savings, you might be overdoing it. Saving for retirement, an emergency fund, or a big purchase should still be a priority, even if it’s just a small amount each month. Instead of feeling like your budget is forcing you to give up your future financial goals, look for areas where you can cut back to reallocate funds into savings. A successful budget should allow you to live well today while preparing for tomorrow.

7. You Feel Like You Have No Room to Breathe Financially

The ultimate sign that your budget is controlling you is feeling like you can’t breathe financially. If your finances feel suffocating, you’re likely overshooting your goals or being too strict. While having a goal to be financially responsible is great, a budget that makes you feel trapped isn’t doing its job. Take a step back and adjust your budget to allow for more flexibility and breathing room. Look at areas where you can give yourself permission to relax without abandoning your financial goals entirely.

There’s Room For Improvement

If you recognize any of these signs in your current budget, don’t panic—there’s plenty of room for improvement. A budget should empower you to reach your financial goals without causing stress. By making small adjustments, you can create a healthier balance between saving, spending, and living freely. Take back control and make your budget work for you, not the other way around.

Have you ever felt like you were no longer controlling your money because of your budget? What changes did you make to get more control and still save? Let us know in the comments below.

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What New Year’s Resolution Can Help You Meet Your Financial Goals?

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New Years Resolution Financial Goals

With the new year approaching quickly, New Year’s Resolutions are on many people’s minds. If your goal is to improve your financial situation, choosing resolutions that can help you head in the right direction is wise. While the exact objectives you set may vary depending on your personal situation, there are many that work well for most people. If you’re trying to meet your financial goals and don’t know what New Year’s Resolution Financial Goals, here are a few to consider.

Create and Follow a Budget

If you do nothing else in 2022, make this the year that you create and follow a budget. With a budget, you get critical visibility into your finances. Plus, it allows you to generate a plan in advance that can propel you toward success, giving you a roadmap to follow as you strive for other  New Year’s resolution financial goals.

In many cases, creating and following a budget is easy. You can use websites or apps that allow you to set spending limits and track your activities, or even go with a simple spreadsheet to monitor your income, savings, expenses, and debt repayments. That way, you’ll know where your money is going, allowing you to gain better control over your financial life.

Pay Yourself First

When most people receive their pay, they focus on handling debt payments and household expenses. While tackling those costs is essential, it’s wise to start at a different point. By paying yourself first, you set yourself up for financial success, ensuring that saving is a priority.

Typically, paying yourself first can involve a variety of approaches. Along with dedicating money to retirement, stashing money in an emergency fund qualifies. Ideally, you want to commit at least 15 percent of your income (including the employer match) to retirement and have three to six months of living expenses set aside. That way, you’re ready for your golden years and can easily navigate the unexpected.

You can also focus on goal-oriented saving as a form of paying yourself first. For instance, setting money aside for your or a family member’s education can count, as well as funding a large purchase, vacation, or something else. However, those goals should only fall in this category if your income genuinely supports it. Otherwise, you could be creating a hardship.

Eliminate Extraneous Recurring Expenses

Recurring expenses can easily fall off of a household’s radar, particularly if they’re smaller. Costs like streaming services (both audio and video), fitness center memberships, magazine subscriptions, and similar expenses chip away at your budget. If they aren’t providing you with enough value, then it’s best to cancel them immediately.

There are tons of small expenses that can crop up as part of daily life, from online payment fees to bank account service fees and credit card interest. It’s easy to not pay too much attention to these, but they can add up over time and put a strain on your budget.

Make reviewing your accounts to identify and eliminate extraneous recurring expenses a priority this year. That way, you can free up a little bit of cash without much effort, giving you a quick financial win.

Tackle High-Interest Debt

High-interest debt is a significant burden that makes it harder to achieve your other financial goals. If you have high-interest credit cards, personal loans, payday loans, or similar debts, make conquering them a priority.

In most cases, going with either the snowball or avalanche method is best. With the snowball, you focus on your smallest balance first, putting as much money toward it as possible and making the minimum payment on every other debt. Then, when you pay that balance off, you redirect all of the cash you were sending there to your new smallest balance debt.

With the avalanche approach, you choose the debt with the highest interest rate to focus on first. It’s a more cost-effective option, allowing you to pay the least amount of interest possible. However, if that debt is large, it lacks the quick win you can get with the snowball method. As a result, it’s best to choose the option that will keep you motivated, ensuring you stick to the plan long-term.

A side benefit of tackling debt is that it usually boosts your credit score, too. If improving your creditworthiness is a priority, you can use this resolution to make it happen.

Learn About Investing

Once you have your retirement account funded, a solid emergency fund, and no high-interest debt, it’s time to think about investing. That way, you can help your money grow faster, potentially allowing you to retire early, live more comfortably, or accomplish other financial goals.

While you may be tempted to jump right into the world of investing, learning about it first is a better bet. Spend time familiarizing yourself with the fundamentals, such as the differences between bonds, stocks, ETFs, and other investment vehicles. Learn about risk mitigation techniques like diversification, as well as how fees and commissions can eat into your earnings. Find out about the tax implications of making withdrawals or trades, ensuring you’re prepared for what occurs.

Once you’ve taken a deep dive into investing, you can determine how you want to proceed. You may be comfortable with a self-directed approach, especially with the number of robo-advisors available that can help you create a portfolio based on your priorities, risk tolerance, and more. If you aren’t, then it’s best to research financial planners in your area, allowing you to find an expert that can help you make choices that align with your risk tolerance and goals.

Define Goals That Align with Your Priorities

While the resolutions above are great starting points, they are based on classic advice and personal finance best practices. As a result, they may be inspiring to some but not connect well with others whose financial situations make those steps unnecessary or poor fits.

If you’re already doing everything above or those objectives aren’t a great match for you, that doesn’t mean you can create New Year’s Resolutions that will allow you to achieve your goals. Just spend some time genuinely defining what you want to accomplish financially. That way, you can create personalized resolutions that speak to you on a deeper level.

Get Specific and Make Objectives Actionable

Ideally, you need to get specific and make your objectives actionable. For example, instead of saying you want to “spend less money” or “save more,” go with goals like “reduce my monthly dining out spending by 20 percent” or “increase my savings account balance by $2,000 within 12 months.”

Then, add in why you want to make those things happen. For instance, the goals above might turn into “reduce my monthly dining out spending by 20 percent, allowing me to pay down my high-interest credit card faster” or “increase my savings account balance by $2,000 within 12 months so that I can launch my new business.”

By resolving to spend time genuinely identifying your priorities, you know what targets will motivate you to keep making smart financial choices. In the end, you’re increasing the odds that you’ll stay on track because you know the “why” behind your actions. It’s simple yet powerful, so take the time to determine your priories as the new year begins.

Are there any other New Year’s resolution financial goals that can help  you have a successful year? Did you use any of the options above and find them effective? Share your thoughts in the comments below.

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