I’m a Financial Advisor: 3 Financial New Year’s Resolutions My Clients Never Stick With
Written by
Lydia Kibet
Edited by
Jenna Klaverweiden
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Every new year, many people set financial goals like spending less, saving more and investing. But as months go by, those resolutions often fade because of lack of discipline and consistency.
GOBankingRates spoke to Deryck Gryne, senior financial advisor at Ally Financial, who shared three New Year’s resolutions his clients struggle to stick with and why.
Also see five money resolutions to ditch this new year and five to try instead.
Sticking To a Budget
Many people start the year on a high note. They create a budget and stick to it. Some will track their income and expenses and cut back on dining out, but by midyear, those good habits start slipping.
“Clients frequently start the year with the intention to budget, but their determination quickly fades as the year goes on,” Gryne said. “Successful budgeting requires more than just good intentions; it demands commitment and consistent execution.”
However, life doesn’t stay constant. Unexpected expenses pop up and priorities shift. That’s why a static budget rarely works. “To maintain a budget, regularly reviewing and adjusting financial plans is often necessary to stay on track,” he said.
Creating a Will or Estate Plan
Estate planning is one of those important tasks that sits on the to-do list for years. Gryne sees this all the time: “Clients have good intentions here but often procrastinate estate planning for a number of reasons, from feeling overwhelmed or discomfort confronting the prospect of their own mortality,” Gryne said.
However, putting off this decision can create serious complications later. Without a will or estate plan, state laws decide how your assets are distributed, which can lead to family disputes.
“A well-structured estate plan can offer peace of mind for clients, knowing that assets are protected and loved ones are provided for according to their wishes,” Gryne explained.
Scheduling a Financial Wellness Check-Up
Most people understand the value of seeing their doctor once a year, but they don’t give their finances the same attention. “Analysis paralysis, or simple procrastination, often prevents them from taking action or meeting with a financial professional,” Gryne said.
He compares it to how successful companies operate. “Fortune 500 companies have written financial plans to hold themselves accountable to stakeholders and achieve future growth. Individuals can do the same by creating a written plan that outlines goals and holds them accountable to their own stakeholders, often their family and themselves,” he said.
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