What’s the difference?
New Years is famous for Resolution.
A new year comes with a hopeful feeling of fresh starts and new beginnings. As such, it’s a time that many of us bring out our pens, notepads, and thinking hats to do one thing–write our new year resolutions.
However, if we’re true to ourselves, we’ll find that many of these resolutions end up, well, “unresolved.”
So what’s the problem, and how can it be “resolved?”
The answer isn’t too far-fetched. It’s like the cousin of resolution, only better. We’re talking about “goals.”
Goals are what you need if you want to stick it and nail your landing at whatever you’ve put your heart into.
This article will show you why goals are better than resolutions.
But first, let’s take a brief look at our faithfully unfaithful friend—’Resolution’.
What Is A Resolution?
A resolution is a firm determination to do something or refrain from doing something. The way these resolutions typically go is that you’re usually very zealous about your decisions at the beginning. However, that zeal tends to burn out almost immediately.
This is what happens when zeal is not accompanied by knowledge. And this, we can say, is a major difference between resolutions and goals.
Resolutions are usually about changes in some aspect of your life.
For example, you can have resolutions on your health, time with family, better management of finances, and so on.
They are like promises you make to yourself which you plan to carry out by sheer willpower. However, sheer will without a form of guidance is short-lived and soon fizzles out as quickly as it came.
To cap it off, resolutions don’t stick. They’re too open-ended and vague to stick, and this is why you need to replace it with goals. And since we’ll be focusing on your financial future, you want to replace those financial resolutions with goals. This is very important.
So, Why Goals?
A goal is a result, a target that you hope to achieve. They’re usually clear-cut and precise. Goals beat resolutions any day, anytime because of many reasons that make them more achievable:
#1. Goals can be broken down into steps.
Unlike mere resolutions that are wide, a goal takes a resolution, breaks it down into achievable tasks or stages that can be carried out within a specific time.
It’s taking one step at a time. A goal says, “how can this be achieved?”, “What steps should I take to achieve this?”, “What’s the starting point?” With this, you have a starting point and an endpoint without leaving anything to chance or luck.
#2. Goals can be measured:
The breakdown of your resolution into achievable steps can then be measured. You can decide how much time and effort each task requires, what tools you need to achieve them and what method you will use. With this, you can measure how well (or not) you’re doing with each task or target.
You can also set reasonable limits, so you do not overwork yourself or go beyond your bounds. You can also identify and measure lapses or gaps and how to make up for them because everything is detailed and follows a plan.
#3. Goals can be tracked:
Goals have a beginning and an end, so you can tell when you’ve achieved a goal. You can track your progress and how much ground you still need to cover. When you have this down, you can determine how much more effort you need to put in to meet your target.
#4. Goals are about growth
With each goal you set and achieve, you’re making progress. With goals, you get to see identifiable growth, which is about goals. They take you from point A to B, taking note of the numbers in between A1, A2, etc. Sounds complicated? Not at all.
With goals, the changes or development do not come drastically with goals, taking you by surprise. Instead, you grow into them, and you grow with them. It’s a smooth transition depending on how well you plan your goals. And even when things do not go as planned, you can evaluate yourself and pick off from where you left off.
With resolutions, when you cannot meet up, you tend to beat yourself up and throw in the towel. However, you know you just missed one step; there are many more ahead and the possibility of a do-over.
Goals give you a picture of the journey and not just the destination. As such, you’re learning in the process.
Bottom line
If you want to improve the quality of your life in the new year, you need to ditch resolutions for goals or transform those resolutions into achievable goals. This is why we don’t make financial resolutions at the Art of Financial Planning; we help you make financial goals.
In the coming year, you want to make financial goals that are smart, honest, and achievable. And we know all there is to know to help you get a good footing, great steps, and a great end.
Get more tips on setting financial goals here: What You Need to Create Your End-of-the-year Financial Plan
