Setting yourself up for success in the new year

A new year is here, and while it might feel especially good to put this particular year behind us, it shouldn’t stop us from planning for the year to come. Wait! Don’t go! This is not a new year’s resolution post. In fact, we’re going to dispense with that particular term right now, along with statements like “this year is going to be different” or “this year I’m gonna get it together”. Putting pressure on the new year to make your life drastically different can just lead to disappointment if things don’t go as planned, and look how that turned out for the year of “20/20 vision”.

For many, a looming new year makes us think about all the things we’re going to change. This may seem like a good idea in theory, but in reality, can lead to goal fatigue and the likelihood of our new habits falling off by mid-January. Our tip? Pick one or two items to focus on in January and then pick up new things as the year goes on.

We’ve put together a few ideas for your money, your mental health, and your motivation. We hope these will inspire you and set you up for success in the new year.

Money

Making a budget may seem like a no-brainer, but less than 50% of Canadians have one. Not having a plan for your money can lead to leaning heavily on high interest credit when unexpected purchases come up. That’s what your emergency fund is for. Think back on the past year. What big expenses popped up that you wish you had been prepared for? We’re willing to bet for a lot of you, it was home office furniture. Budgeting for what you can expect and keeping a reserve aside for what you can’t necessarily plan for can go a long way to relieve financial stress.

While you’re planning out your budget, don’t forget to include a regular payment to any outstanding high-interest debts. Want to go one step further? It may be worthwhile to re-examine the card you’re currently using. Are you paying 19% interest per month for travel rewards you aren’t going to be redeeming anytime soon? Check into a card with a lower interest rate, or perhaps a different reward system that makes more sense for you.

Make this the year you start making your money work for you. Take advantage of the contribution room in your RRSP or TFSA. Not sure whether an RRSP or TFSA is right for you? Check out the major differences here. Bonus – if you work at a company that offers matching for your contributions, make sure you’re taking advantage of their offerings to maximize your return on investment. Talk to your HR rep to find out more.

Mental Health

Taking care of your mental health is paramount, and can often closely connect with your finances. For this, and many other reasons, doing a regular “mental health check” is invaluable. What did you do this year that fortified you? Whether it was regular walks outside, volunteering, or taking time for self-care, sometimes the best things in life really are free. Plan to integrate these activities into your upcoming year and prepare to reap the rewards.

Take some downtime once every couple of months or so and do a social media audit. Is scrolling through Instagram a positive experience, or do you end up feeling an overwhelming sense of FOMO, and waking up the next day to an Amazon Prime box full of the items you thought would make your life better? We’ve all been there. Allow yourself to unfollow or mute when necessary. Social media is your world to curate; fight the FOMO, and make it an enjoyable place to visit.

If you don’t already have a will, consider making it a priority. Writing a will isn’t what most people likely think of as a mental health exercise, but the knowledge it is taken care of is a great source of peace of mind. Consider using an online source like Willful, who will allow you to write your own will in 20 minutes, for as little as $100.

Motivation

What’s better motivation than thinking about the great things you did this year? Before you decide on your goals for the next 12 months, spend some time reflecting on the great things you accomplished in the past 12. Did you start a fulfilling new hobby, or spend more time outside? Did working from home allow you to save money by skipping your daily commute? Motivation can be fueled by tangible results, so taking some time to reflect on the positive aspects of the past year can help to set you up for the months to come.

A “rememberlutions jar” expands on the above idea. Check out what this blogger did and make your own. Throughout the year when something great happens, write it down on a piece of paper and put it in the jar. Come New Year’s Eve, you should have a jarful of accomplishments and happy memories to read through.

If you truly have your mind set on a list of goals, consider spreading out your goals over the course of the year. The great thing about this approach? There is no set time you have to accomplish each goal, so you won’t end up feeling overwhelmed and exhausted by January 20th.

Now, doesn’t that sound better than “this year will be different”? We thought so.