Why most financial resolutions fail (and how you avoid it)

Most money goals fail for boring reasons, not because you’re lazy or “bad with money.”

A few common traps show up over and over:

• You keep goals too vague (like “save more” with no number, no plan, no timeline).
• You rely on willpower instead of systems (and willpower is flaky).
• You hit one rough month, then fall into a shame spiral, and quit completely.

You fix this by making the goal smaller, clearer, and tied to a habit you can repeat. The whole point is to get you into the group that actually finishes the year strong (the so-called “8 percenters”).

Resolution 1: Pay yourself first (and automate it)

If you only do one thing on this list, do this one.

Paying yourself first means your money goes to your priorities before it goes to random stuff that sneaks into your cart at 9:47 pm. The easiest way to pull it off is automation, so you’re not making a fresh decision every week.

A simple target is 20%. The idea is:

• Put away 20% of your income toward your goals first.
• Live on the other 80% for everything else (housing, food, bills, life).

That 20% can go to a bunch of different “you” buckets, depending on what you’re working on right now.

Where “pay yourself first” can go:

1. Retirement accounts like a 401(k) or 403(b).
2. A Roth IRA (or backdoor Roth, if that’s part of your plan).
3. A 529 plan for kids.
4. An emergency fund rebuild.
5. A brokerage account.
6. A big planned expense, like a family trip, you want to pay for with cash.

The real win is the habit: your paycheck hits, and the important transfers happen right away. Then you build your budget around what’s left.

If you already do this, tweak it.

If you’ve been paying yourself first for a while, 2026 is a great year to re-check your setup:

• Can you bump the percentage up a little?
• Is your emergency fund solid now, so you can redirect that same amount to another goal?
• Are you close to maxing out a retirement account for the first time?

Small adjustments here can create a big gap by the end of the year.

Quick reminder: Systems beat motivation every time. If it’s automated, it actually happens.

Resolution 2: Use the reverse budgeting rule (yes, you get fun money)

Budgeting fails when it feels like a financial straightjacket. You can be doing “everything right” on paper, but if the plan makes you miserable, it won’t last.

That’s why the reverse budgeting rule is such a relief.

Instead of tracking every little expense and feeling guilty all month, you pick a set amount of fun money and give yourself permission to spend it with zero guilt.

How it works in real life:

You choose one number, and it can be based on:

• Each paycheck
• Each week
• Each month

That’s your fun money. Spend it, save it, let it roll over, whatever. If you do a “dry January” style month for spending and barely touch it, great. It builds up, and you can use it later.

The point is you stop pretending you’ll never want a coffee, concert tickets, or a random Target run. You just plan for it like an adult.

Resolution 3: Create your own 52-week money challenge

Big savings goals can sound scary because they land as a single, intimidating number.

Ten thousand dollars feels heavy. Two hundred bucks a week feels… doable.

That’s the whole trick behind the 52-week money challenge. You pick a goal, divide it by 52, and save that amount each week (or monthly if you prefer). You can start on New Year’s Day or start whenever you’re watching this. The math still works.

Simple math that makes saving feel smaller.

Here’s the weekly breakdown:

Saving $192 per week gets you to $10,000 in a year. Saving $100 per week gets you about $5,200 (close enough, and it’s an easy number to remember).

What you can use it for:

This challenge works especially well when you want a lump sum by the end of the year, like:

• Rebuilding an emergency fund.
• Building a cash cushion.
• Saving for a trip.
• Stacking extra savings alongside your retirement contributions.

Automate it if you can, because repeating the same action every week is where this gets real.

Resolution 4: Schedule monthly spending purge weekends (purge, not splurge)

This one is the exact opposite of “treat yourself.”

You plan one weekend per month where you spend nothing extra. No “quick” Amazon order. No wandering into Target for one thing and leaving with 11. No random errands that turn into surprise spending.

It’s a spending purge weekend, and yes, it’s harder in real life than it sounds. That’s why you plan it on purpose.

What counts as “no excess spending”?

Think “normal essentials only.” The vibe is:

• No impulse buys.
• No shopping as entertainment.
• No add-on spending just because you left the house.

If you want activities, pick free ones. A park walk. A day outside. A movie night at home. Anything that doesn’t end with your card getting tapped 14 times.

Why does this add up fast?

Save $500 in that weekend?

Do that once a month, and you’re looking at roughly $6,000 a year in extra breathing room.

Even if your number is smaller, the habit still works because you’re creating a repeatable pause. You’re proving to yourself that spending is optional sometimes, not automatic.

You can also scale it up into a full “dry” month for spending right after the holidays, or during another expensive season.

Resolution 5: Put four “money dates” on your calendar.

Money stress grows in silence. Then it shows up later as arguments, confusion, or that sinking feeling when you check your account.

So you fix it the same way you fix anything else important: you schedule time for it.

Add four money dates to your calendar this year. One per quarter. Keep them simple, and make them long enough to actually pay attention (about an hour or two).

If you’re single, it’s a solo money date. If you have a spouse or partner, do it together. You don’t both have to be the household CFO, but you do need to be on the same page.

What do you do on a money date?

You review the big stuff:

1. Money in, money out. Look at your budget and recent transactions.
2. Subscription leaks. Cancel the stuff you forgot you had, or the stuff you’re not really using.
3. Progress check. Are you on track for the goals you set this quarter (like a trip, a savings target, or paying cash for something planned)?

The video mentions tools like YNAB and Monarch as examples of budgeting software. Use whatever makes it easiest for you to see the full picture.

A simple rhythm that keeps it from feeling overwhelming.

A nice approach is:

• Do a quick monthly check on your own (fast, basic, just maintenance).
• Do the deeper review quarterly (the full money date).

That way, you’re not staring down three months of data every time you look.

Resolution 6: Improve your credit score with three specific moves

Your credit score touches almost everything you borrow money for. Car loans, mortgages, student loans, all of it. A higher score usually means a lower interest rate, which lowers the cost of borrowing.

So in 2026, make your credit score a quiet side project. Not stressful. Just intentional.

Here are the three tips from the video.

1) Ask for a credit limit increase (and don’t spend more)

This one makes people nervous, for a fair reason. A higher limit does not give you permission to run up a larger balance.

The point is to help your credit utilization, which is a major factor in your score. If you keep your spending the same while your available credit increases, your utilization ratio goes down, which can help your score.

Issuers like Chase, American Express, and Capital One often approve increases when:

• Your utilization is under 30%.
• You’ve had on-time payments for the last six months.

These increases can lead to jumps of roughly 40 to 120 points, often showing up after about 30 to 60 days.

2) Keep your utilization under 30%

Here’s the simple version:

• If your credit limit is $1,000, staying under 30% means keeping the balance under $300.
• If your credit limit is $10,000, staying under 30% means keeping the balance under $3,000.

Going above that level can start pulling your score down, even if you pay on time. That surprises a lot of people, but it’s a real thing to watch.

3) Use free tools that report on-time payments

• Experian Boost, which can add on-time payments (like rent, utilities, phone, and even Netflix) to your Experian file. With a potential increase of about 13 to 27 points.
• UltraFICO, a free option sometimes available through credit unions and Credit Karma, which can add rent and utility history to Equifax and TransUnion. This could move your score by 20 to 70 points, sometimes within about 30 days.

If you’re already sitting at a high score, these might be smaller bumps. If your score needs work, they can help you build momentum.

Resolution 7: Write a “future you” letter (yes, it’s cheesy, and yes, it works)

This is the soft side of money, and it matters more than people like to admit.

Take a few minutes, write a letter to yourself, and spell out what you want to accomplish this year. Put it in an envelope, seal it, and stash it somewhere you’ll find it next year.

It sounds simple because it is simple. The power is that it forces you to stop being vague.

What to write in the letter

Pick three big goals (three is a great number). Add a few smaller ones if you want.

Use goals you can control, like:

• “I want to fully fund my Roth IRA (or backdoor Roth) this year.”
• “I want a $10,000 emergency fund.”
• “I want four money dates on the calendar.”
• “I want to open and contribute to a 529 plan.”
• “I want to pay cash for a planned trip.”

Try not to set goals like “I want my 401(k) balance to be $50,000,” because markets move. You can do everything right and still see your balance swing due to volatility in stocks, bonds, or even things like bitcoin.

A better target is a funding goal. That’s something you control with your actions.

Your 2026 action plan (keep it simple)

You don’t need all seven to have a great year. You need a few that fit your life, and you need to stick with them long enough to see results.

If you want the simplest approach:

• Automate paying yourself first.
• Give yourself fun money so the budget doesn’t feel miserable.
• Pick one weekly savings number and run it for the year.
• Schedule the money dates now, while you’re thinking about it.
• Keep your credit utilization below 30%.
• Write the letter, because future you will be annoyingly grateful.

Your money goals don’t need more hype. They need clearer targets and fewer decisions you have to make every day. When you build the system, you give yourself a real shot at being one of the people still winning in December.