Goals vs. Resolutions: How to Achieve Both in the New Year
We’re approaching that time when everyone starts looking ahead to the New Year and thinking about what they want 2026 to look like. And what’s interesting is that most people’s decisions are the same, year after year.
According to another studyThe top three resolutions are to exercise more, lose weight, and save money. And 55% of millennials listed saving money as a solution, beating Gen X and Baby Boomers. But that begs the question – how do you go about achieving your financial goals?
Most people don’t realize that goals and resolutions are not the same thing and you need different strategies to achieve each. Let’s take a look at the differences between them and how you can achieve your financial goals and resolutions in 2026.
Goals vs. Decisions: What’s the Difference?
Goals and decisions work together, but they are not the same. I think of goals as specific goals you are trying to achieve. There is a clear ending, and you will know whether you have completed your goal or not.
In comparison, resolutions are like your big theme for the year. There is no specific end, and you work towards achieving your resolution every day. As you work on your New Year’s Resolution, you’ll set some goals to keep you on track.
For example, saving money could be your 2026 resolution, and building a $1,000 emergency fund by July 1, 2026, could be your first goal. You will know whether or not you are achieving that goal, and working towards it will keep you focused on your New Year’s Resolution.
How to Come Up with Financial Decisions
My biggest tip for making financial decisions is to make them personal. Ask yourself: What money problem do you absolutely not want to enter in 2026?
Most people make choices that they think they “should” make, and since they don’t really care about making them, they quickly run out of steam. So what is something in your financial life that you are tired of and want to change?
For example, if you’re sick of turning to high-interest credit cards every time an emergency happens, maybe your goal is to keep an emergency fund. Or, if you are tired of renting and looking for your own place, your goal may be to buy a house in the coming year.
Another question you can ask yourself is, where do I want to be in five years? If you think about what you want for a long time, this will help you make decisions that are important to you.
The exact fix you choose doesn’t matter, as long as it feels personal to you and is something you care about accessing.
How to Set and Achieve Your Financial Goals
The benefit of setting and achieving goals is that if you do it right, it enables you to meet your New Year’s Resolutions. Every goal you set should move the needle on your annual resolution. Here are a few tips to help you get started.
Set Smart Goals
When you set SMART goals, you greatly increase your chances of achieving them. SMART goals are specific, measurable, achievable, relevant, and timely. Your goals should be clear and well defined and guide you to where you are going and how you will get there.
If a goal is measurable, that means you can measure whether it was successful or not. “Paying off the debt” is a vague goal that is impossible to measure. “Pay off $5,000 in student loan debt” is a measurable goal because you’ll know when you reach it.
The goal should also be achievable, meaning it’s not so big that it feels overwhelming. And the goal should be consistent, meaning it takes you where you want to go in your life.
And finally, your goals should be timely. There should be a deadline that you are working towards. If you haven’t met your goals by the deadline, it may be time to reevaluate your plan and develop a new strategy.
Write down your goals
It’s not enough to have goals floating around in your head that you think about all the time. Writing your goals down makes them feel real and tangible.
I recommend writing your goals down and putting them somewhere you can see them often. For example, you can write your goals on a sticky note that you leave on your desk. Then every day, when you start working, you will be reminded of your goals.
Come up with a plan
Goals won’t just happen by themselves — you have to come up with a strategy for how you’re going to achieve them. Whenever I have a big project I’m trying to achieve, I like to start by brainstorming all the different steps I’ll need to take.
I recommend making each task small and easy to complete. From there, you can start assigning these tasks to your calendar and making progress towards your goal.
Update Them Throughout the Year
Once you’ve come up with your New Year’s Resolution and outlined your goals, you should review them throughout the year. It’s a good idea to schedule a check-in at the end of each month.
Think about what went well and what you could have done better. If you haven’t made progress on your goal, think about why. Was the goal too big, or did you overestimate how long it would take to achieve it?
The point is, there will be bumps along the way, and you may need to adjust your plan from time to time. As long as you keep moving forward, you are on the right track.
The Bottom Line
Goal setting has played an important role in my life and has helped me achieve my financial goals. New Year’s resolutions and goals go hand in hand, and focusing on both will help you be more successful in the coming year.
Do you have financial goals for 2025? Let me know in the comments!
