December 2025
Barbara O’Neill, Ph.D., CFP®, AFC®
Distinguished Professor and Extension Financial Management Specialist Emeritus
Rutgers Cooperative Extension
At the beginning of each new year, many people make resolutions to improve their lives: lose weight, get organized, save money, spend more time with family, quit smoking, get more exercise, and do better in general.
Unfortunately, many great intentions fall apart by mid-January. Why? The resolutions did not have an accompanying action plan. Why not try something different in 2026? Take the month of December 2025 to think through your resolutions so you can "hit the ground running" on New Year's Day.
Consider the following steps:
Clarify Your Goal- Write down what you want to accomplish and by when. For example, if your goal is to lose weight, write something like "I will lose 20 pounds by August." This goal is measurable, and you can chart your progress. Make sure that a goal is possible to accomplish. Many people set unrealistic goals that are impossible to reach. When it becomes obvious that they will not reach their goal, they quit altogether.
Develop an Action Plan- Ask yourself: What steps do I need to take to accomplish this goal? What needs to happen? For example, if your goal is to get your finances organized, you might list action items like track income and expenses for a month, prepare a budget, open a high-yield savings account, etc. List all the steps in chronological order to have a time table to work with – step one, step two, etc.
Incorporate Daily Positive Habits- Integrate positive habits that support your goals and action plan into your life. For example, completing a savings challenge (PDF) with daily deposits into a can or jar, "rounding up" the change from purchases with an online banking app, reviewing daily spending, writing debit card purchases in a checkbook register, setting a daily spending limit, and learning one new thing every day about personal finance.
Prepare to Conquer Obstacles- Identify things that could prevent you from reaching your goal. Write them down on a sheet of paper. Beside each obstacle you list, write down two or three ways you could overcome the obstacle. For example, emotional spending due to stress or boredom. A workaround could be taking a walk with a friend. Sometimes potential obstacles never occur, but, when they do, you have a plan of action.
Identify Resources- Identify resources to help you accomplish your goal. Are there books you could read that might help? Could you join a group of people who are working toward the same goal? Are there professionals you could contact who could assist you in some way? Or books, podcasts, webinars, or community education programs like those offered by Rutgers Cooperative Extension?
Include Rewards- Plan to give yourself small rewards along the path to achieving your resolutions. As you reach milestones toward accomplishing your goals (e.g., the halfway mark), think of ways to give yourself encouragement and support. Do something you like, give yourself a treat, or spend time with people you enjoy. For example, eat a nice meal out for every $500 you save.
Bottom Line: Having a plan to reach your New Year's resolutions provides direction, motivation, and control. Plans help people prioritize spending, track progress, and stay disciplined. If you want to save money in 2026, for example, you can't do it if you don't pay attention your spending. Remember, each decision that you make each and every day will determine the outcome of your goals.