How to set financial resolutions which actually stick
Peter McGahan
Monday 11th January 2026.
January always shows up in a pair of trousers which feel tighter than we remember. The credit card’s still hot, and here comes that hopeful, nagging question: “Right then, this year, will I finally get a grip on money?”
We say we’ll save more. Spend less. Stick to a plan. But by February, many of those goals have quietly, or, with a bang, wandered off.
It’s not because we’re lazy. It’s because most financial resolutions are built like flatpack furniture without instructions, all pieces, no sense of how to hold them together.
Why do most resolutions fail? Well, the goals themselves aren’t bad - “save more,” “clear debt,” “stick to a budget.” But they’re too vague. Cold. Disconnected from the human behind them and rejected by the subconscious as a non-instruction.
It’s like deciding to run a marathon without knowing why you want to run it. You’ll feel that at mile three both physically and psychologically.
Real change starts with the why, not the what. And it sticks when it aligns with who you are becoming, not just what you’re trying to control.
Most resolutions rely on willpower. But willpower is like your mobile battery, good in the morning, gone by 9pm when the biscuits or wine and cheese start whispering. Habits stick when they’re built into your life with a strong why.
Then there’s this thing our brain does, called temporal discounting. It means we favour the quick reward over the long-term benefit. We’ll take a £40 impulse purchase today over a £400 safety cushion in six months, because the future feels far away. Emotionally, your future self is a stranger. And strangers are easier to let down.
Visualising your future self has a positive proven effect. Research by Hal Hershfield shows that when we form a connection with the ‘older us’, we make better long-term decisions. We stop acting like the financial equivalent of a teenager with a stolen credit card.
Try this: write a short note from your future self to the you of today. It doesn’t have to be too deep. “Appreciate you skipping that impulse buy. I’ve got breathing space now".
Instead of setting outcome goals like “I want to save £2,000,” try changing that to identity goals.
“I’m someone who respects their future".
“I’m someone who plans calmly".
“I’m someone who builds stability, one small step at a time".
There is no greater psychological drive than to stay close to our identity (both good and bad).
This shift changes your inner conversation. You’re not struggling to become this person. You already are. Every decision then becomes a way of reinforcing that identity, not chasing it.
Link your money plans to your emotional needs so you get it.
We’re not rational creatures. We’re need-based creatures. Every good money habit also meets a deeper need.
Saving regularly? That’s about security and autonomy. Budgeting? That’s control and calm. Giving? That’s connection and contribution. Investing? That’s purpose and growth.
So, frame the habit in a way which meets your why. “I’m not saving to deprive myself. I’m saving because it’s how I protect my peace".
BJ Fogg, a behavioural scientist, says the smaller the habit, the more likely it is to stick.
So don’t start with “budget every week". Start with: “Every Sunday, open my bank app and glance at the balance while the kettle boils.”
Pair it with something you already do like brushing your teeth, walking the dog.
Want to save more? Move a fiver into savings every payday. Doesn’t matter how small. What matters is the message: “I do this now.”
Build habits. Set up direct debits. Unsubscribe from marketing emails. Delete saved cards from shopping sites. Not because you’re weak, but because you’re wise.
You’re not creating restriction. You’re creating an environment which looks after you, even when you’re tired, distracted or hormonal.
And if it goes wrong? It hasn’t. The enemy of good financial change isn’t failure, it’s shame.
So, you missed a week? Blew the budget? Fine. Get back on the bike.
One misstep doesn’t undo the direction of travel. It just reminds you you’re human.
Who do you want to become with your money?
Write down three identity statements. Choose one habit – tiny, easy, honest – which reinforces each one this week.
Because the real power of money isn’t in what it buys. It’s in how it shapes who you are. And January is as good a time as any to decide who that will be.
If you have a financial question, please call 01872 222422 or email info@wwfp.net
Peter McGahan is the Chief Executive Officer of Independent Financial Adviser firm, Worldwide Financial Planning. Worldwide Financial Planning is authorised and regulated by the Financial Conduct Authority.
