If financial resolutions are intentions \u2014 “I want to save more money this year” \u2014 then financial goals are a more specific aim \u2014 “I plan to cut discretionary spending by 20% each month.”\u00a0<\/span><\/p>\n<\/div>\n Financial actions are the actual steps you take to make progress \u2014 “I will log in and cancel any subscription service I haven\u2019t used in the past 30 days.”<\/span><\/p>\n<\/div>\n The goal is the expendable piece of that process, says Peter Bregman, executive coach and CEO of Bregman Partners, an executive coaching company.<\/span><\/p>\n<\/div>\n As a coach, he helps leaders focus on what’s important. He says people often overlook the intention of the change they want to make because it\u2019s thought to be implicit. That can lead to tunnel vision and inflexibility on specific targets.\u00a0<\/span><\/p>\n<\/div>\n Skip goals, and go right from intention to action, he suggests.<\/span><\/p>\n<\/div>\n Let\u2019s say your financial intention (call it a resolution) for 2023 is to spend less money and pay off debt. Say it out loud to someone who\u2019ll listen, says Bobbi Rebell, certified financial planner and author of \u201cLaunching Financial Grownups.\u201d Now, with a sense of direction and accountability, you can make money moves, no goals required.<\/span><\/p>\n<\/div>\n Grab a recent paycheck and a piece of paper, or get fancy with a <\/span>free budget planner<\/span><\/a>. Write your monthly, after-tax income at the top, then list our your financial obligations, says Rebell. Think rent, utilities, groceries, child care, transportation and any other bills and debt you have to pay no matter what.<\/span><\/p>\n<\/div>\n Subtract those essential expenses from your monthly income. The money that remains is what you have for <\/span>discretionary expenses<\/span><\/a> and saving.\u00a0<\/span><\/p>\n<\/div>\n \u201cIt\u2019s usually not as bad as you thought,\u201d says Rebell. This exercise tends to uncover that a lot of expenses are discretionary, she says.<\/span><\/p>\n<\/div>\n Use bank and credit card apps to tally up all the other scattered spending. From there, you can probably find a few things to cut. If you\u2019re not sure where to start, take the budgetary ax to a streaming service. You may be surprised at the joy it brings.\u00a0<\/span><\/p>\n<\/div>\n Spot your saving opportunities<\/span><\/p>\n See your spending breakdown to show your top spending trends and where you can cut back.<\/span><\/p>\n<\/div>\n Debit cards, credit cards, cash apps and digital wallets make spending painless on the front end. The dull ache hits later though when the bills are due, especially if you carry a credit card balance.<\/span><\/p>\n<\/div>\n It\u2019s time to make shopping inconvenient. Delete retailer apps, unsubscribe from their mailing lists and remove stored credit cards from browsers and websites, says Rebell. It may sound trivial, but doing so adds friction to the purchase process. You\u2019ll probably think twice about that new pair of shoes if you have to grab a credit card and hand jam the numbers into your phone at checkout.\u00a0<\/span><\/p>\n<\/div>\n \u201cIt\u2019s basically a modern version of \u2018freeze your credit card in the ice cube,\u2019\u201d she says. And yes, the literally frozen credit card is a thing.<\/span><\/p>\n<\/div>\n Take another look at your list of obligations and focus on the debt this time. Note the amount you owe and interest rate for any money borrowed. Think things like a car payment, student loans or a balance carried on a credit card. Now, choose a prioritization strategy.\u00a0<\/span><\/p>\n<\/div>\n Consider using a <\/span>debt snowball<\/span><\/a> or <\/span>debt avalanche<\/span><\/a> approach to pay off what you owe. With debt snowball, you focus on your smallest balances first, and hope to rack up quick wins as you close out loans.\u00a0<\/span><\/p>\n<\/div>\n With debt avalanche, you prioritize loans with higher interest rates to wipe out the most expensive debt first. Credit card bills are a good place to start with debt avalanche due to exorbitant APRs.\u00a0<\/span><\/p>\n<\/div>\n Both methods have merit. The important step is to pick a path and make the first move.<\/span><\/p>\n<\/div>\n If goals are what get you from point A to B, then by all means, set them. But don\u2019t let setting percentage targets hold you back from simple actions that help you gain control of your money.\u00a0\u00a0\u00a0<\/span><\/p>\n<\/div>\nMoney move 1: Look at the numbers<\/span><\/h2>\n<\/p>\n
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<\/div>\n<\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\nMoney move 2: Make it harder to buy things online<\/span><\/h2>\n<\/p>\n
Money move 3: Pick an approach to pay down debt<\/span><\/h2>\n<\/p>\n
New year, new financial you<\/span><\/h2>\n<\/p>\n