A Goal Without a Plan is Just a Wish

It's the second week of the year. How are you doing on your resolutions? Did you know that 75% of people keep their resolutions for only one week? So if you're still going strong, congratulations!

A lot of people think that their failed resolve is due to their lack of willpower. However, more often than not, it's their lack of planning that's their downfall.

I'm a planner. I like to know what it is I'm doing and how I'm gong to do it. Having a plan of action is important. As Benjamin Franklin once said, "If you fail to plan, you are planning to fail."

If your New Year's resolution for 2017 was to get out of debt, did you give any thought on how you were going to accomplish that feat? Unfortunately, most people don't. Fortunately for those of you reading this, I'm here to help.

You kind of have to look at this like those who battle with addiction. The first step is admitting you have a problem. If you have no savings, debt that you never seem to be making headway with and live paycheck to paycheck, you have a problem.

So now that you've accepted that you have a problem, what comes next? This is where they introduce the 12-step program. But we don't need quite so many steps for this plan.

Step 1 — Be aware. When's the last time you took a good look at your finances? Have you written out all of your expenses, calculated all of your debts? If you haven't, start there. Once you've done that, look for patterns. Do you tend to spend more in one category than the other. Why do you think that is? You must pinpoint that in order to move forward and be better with your finances in the future.

Step 2 — Sacrifice. Typically, people's financial resolutions consist of pay off debt, save more, spend less, and start investing. All of which require some sort of monetary sacrifice. Can you cut back on dining out? Can you save money on gas by carpooling to work? What about cable? So many people are cutting the cord these days and saving hundreds of dollars. You could also sell things you have around the house that you don't use anymore.

Step 3 — Budget. A budget is just a plan for your money. You'll never be good with your money unless you tell it what to do. How do you know how much money you can set aside to save or pay off debt if you spend it frivolously? Control your money. Don't let it control you.

Step 4 — SMART goals. I'm sure you've seen this plenty of times, but that's because it works. In order to be successful, you must ensure that your resolution is specific, measurable, attainable, realistic and timely—SMART. For example, Nicole wants to pay off $1,800 of debt by paying $160 (accounting for interest) toward it every month so that it will be paid off by the end of this year. Wouldn't you say this fits all of the criteria?

And there you have it. Now that you have a plan to accomplish your financial resolution, you will be more likely to accomplish it. I've given you the tools. Now, go forth and prosper in 2017!