Why New Year’s resolutions fail and how to finally achieve your money goals

Ringing in the new year often sparks ambitious resolutions to finally get investing priorities or retirement plans in order. Yet we’ve reached the point in January where many people are losing their resolve. And by February, most well-intentioned goals are gathering dust amid post-holiday bills and winter doldrums. In fact, studies show that about 90 per cent of people fail to achieve their New Year’s resolutions. And it’s not simply a lack of willpower or one too many glasses of bubbly on New Year’s Eve prompting overly ambitious goals.

The core issue is that the bold aims we set often lack tactical plans and coping strategies to navigate inevitable obstacles. Vague aspirations to “invest more,” “save for retirement” or “reduce portfolio risk” quickly derail without a roadmap spelling out specific actions, timelines and contingency plans.

This is where “implementation intentions” can empower us to conquer resolution pitfalls and realize investing and retirement planning priorities. An implementation intention is an “if-then” plan detailing the situations and planned responses to further one’s goals in the face of temptations and setbacks.

For example: “If I am tempted to buy something online that I haven’t budgeted for, I will put it in my cart and leave it there for three days before deciding whether I really need it.” By proactively identifying potential obstacles and cementing strong mental connections between challenges and solutions, people are equipped to automatically initiate their pre-planned responses without needing conscious effort when obstacles arise.

The key is anticipating specific situations that may threaten investing goals or retirement priorities and having an intentional alternative behaviour ready. This pre-emptive planning works for two key reasons:

First, it increases accessibility and automaticity. By proactively planning “if-then” responses to likely obstacles, people become more attuned to reacting to triggers in the heat of the moment. There is no hesitation or conscious effort required, as the mind has prepared itself to take action when the anticipated “if” situation arises.

Secondly, it strengthens mental links between triggers and actions. When a specific challenge emerges, the mind activates the associated planned behaviour rather than getting derailed by temptation or hesitation. This neural connection between a particular obstacle and tailored solution has been strengthened ahead of time for rapid-fire action.

In this way, implementation intentions empower you by effectively “outsourcing” conscious control to an automatic process primed for the inevitable obstacles. By creating this mental “subroutine” in advance, we free up limited willpower reserves to focus energy where it matters most: making progress toward financial goals. The difference this simple strategy makes is remarkable; research shows that using implementation intentions increased one’s chances of success by an average of 61 per cent compared with simply setting a goal.

You have a prime opportunity to dramatically boost success rates for budgeting, investing and retirement planning goals, whether you craft a financial plan by yourself or work with a financial adviser to collaboratively build an implementation intention strategy.

Follow this three-step framework:

1. Set S.M.A.R.T financial goals These are goals that are specific, measurable, achievable, realistic and time-bound. For example, I want to save more for retirement in 20 years. I will invest an extra $250 every month in a Canadian equity ETF.
2. Anticipate obstacles Brainstorm about specific challenges, temptations and triggers that may sabotage your ambitions. How can you pre-empt pitfalls? For example, if the market drops 10 per cent or more, I will not take any action, as I can expect that the market will recover and continue to grow by the time I retire in 20 years.
3. Build “if-then” plans Create implementation intention coping strategies for high-risk situations. What back-up behaviours will help keep goals on track? For example, if the market drops 10 per cent or more, I will not watch any market commentary but instead review my financial plan and strategy.

By designing this roadmap at the time goals are set, you are twice as likely to actualize financial and retirement priorities compared with goals lacking contingency plans. Implementation intentions put you in the driver’s seat, primed to adeptly navigate inevitable hurdles toward the finish line.

As the famous Stoic philosopher and Roman senator Seneca said: “The man who has anticipated the coming of troubles takes away their power when they arrive.”