Will the new year bring new financial resolutions?

When I told my friend Bill that I was writing a column on New Year’s resolutions, he laughed.

“Remember resolving to lose 10 pounds a few years ago? Resolutions are a waste of time. Why bother?”

Well. He’s right about the 10 pounds, but I do think financial resolutions are different. Here’s why: New Year’s resolutions are all about the new year. A new beginning. It’s a first step that leads to a desired result. It’s like stepping onto a diving board before plunging into the pool.

With that in mind, the starting point is to conceive of a future financial outcome that you would like to achieve. My personal favorite for readers of any age is to plan for a secure retirement, whether that’s around the corner, or 40 or more years into the future. What could you do in 2024 to start on that path? Or, if you’ve already taken action, how do you check your progress?

For a moment, imagine a time in the future when you will look back to today. If you are 40, imagine you are 65. How would the 65-yearold you guide the 40-year-old you? Would you say you’re on course — nothing to worry about?

Or, would you say don’t make the mistakes I made? Don’t put off saving for retirement for a single year, even if you also need to save for the kids’ college expenses; you can have two objectives at the same time. Don’t spend money you don’t need to; once it’s gone, it’s gone for good. Don’t think of money emotionally; it’s just a tool to use for now and the future. Don’t throw away employer matching funds for retirement by failing to max out the company’s match.

Don’t think you know how to invest; take the time to study — and study hard. Do everything to start on the compounding curve right away; don’t delay a single day.

Don’t create a lifestyle to impress others. Don’t forget to support charity. Don’t forget that you are a role model to your children; they are watching you and learning from you every single day.

Learn about taxes. Learn about investments. Learn about other people’s mistakes so you can avoid them. Don’t take risks that you don’t understand. Read the newspaper and other reliable news sources. Identify a few people you respect and admire, and ask them about their successes.

When dealing with finances, the move into a new calendar year can trigger short-term goals (an easy example is saving $100 more each month) or a 10- or 20-year program of investing every year for the future.

The change from 2023 to 2024 is an opportunity to think ahead, to plan, as resolutions help us do. It also helps us review what we did last year, to see what worked and what didn’t, and to explore the “why” behind those outcomes. What’s the ultimate goal? To use the momentum of the season to trigger self-discovery and identify a few things you can do to start the journey to financial security.

You’ll have some company. It turns out that 66% of those surveyed by Fidelity Investments are considering financial resolutions. According to its 2024 New Year’s Financial Resolutions study of 3,002 adults (tinyurl.com/2tr9kevj), Americans are poised for a resolution revolution — improving their financial lives by conquering their financial goals and gearing up for a year of “new chapters” and “living practically.”

Here’s to a 2024 in which your financial resolutions lead you to achieving your desired goals. And take Bill’s advice when it comes to dieting resolutions.

Seasoned investment counsel (tinyurl.com/52nus8hz) and award-winning columnist and author, Julie Jason, JD, LLM, promotes financial literacy and investor protection. Read her latest book, "The Discerning Investor: Personal Portfolio Management in Retirement for Lawyers (and Their Clients)" (tinyurl.com/4u7h9pjs), published by the American Bar Association. Write to Julie at readers@juliejason.com. While all questions cannot be answered, each email is read and reviewed and can lead to discussion in a future column.