In the year 2024, there has been a noticeable increase in people setting financial goals right at the beginning of the year. Many are engaging in discussions with friends, family, and coworkers, showing a collective interest in improving their financial well-being. As someone who often struggles to meet my financial targets set at the start of each year, I am always on the lookout for new approaches to managing my finances in a way that makes sense to me. That’s when I stumbled upon the RESOLUTION method, created by Georgia Galloway, a finance expert at Finbri, which felt like a breath of fresh air for someone like me who isn’t naturally inclined towards numbers.
Whether you’re just starting your financial wellness journey like me or looking to reignite your passion for financial health this year, the RESOLUTION method is a comprehensive strategy to consider. Below, we’ll take a closer look at this simple financial wellness plan and explore examples of how you can incorporate it into your daily life.
What is the RESOLUTION method?
The RESOLUTION method stands out from traditional goal-setting by outlining 10 approaches to managing and approaching your finances. Unlike typical New Year’s resolutions that often fizzle out quickly, this method, developed by Galloway, is designed to nurture financial well-being gradually rather than trying to tackle all financial goals at once. The focus is on making incremental positive changes, allowing you to implement these 10 steps slowly over several months or the entire year. By following each step represented by a letter in “RESOLUTION,” you can move closer to achieving your financial goals and reflect on your progress at the end of the year. Let’s delve into the 10 steps of the RESOLUTION Method.
Georgia Galloway is a finance expert specializing in bridging loans and property development finance. Her insights have been featured in publications such as The Telegraph, Metro, and Bloomberg.
R: Reimagine your relationship with money
The first step in the RESOLUTION method involves reevaluating how you interact with your finances. Galloway suggests various methods to enhance this relationship, like checking your bank account regularly, discussing financial matters with loved ones, and reflecting on your financial history and goals. Setting aside time each week for a “money date” to review your budget and investments, having open conversations about finances, and reflecting on your money mindset can all be part of this step to better plan for your financial future.
E: Establish realistic financial goals
Galloway emphasizes setting practical and achievable financial goals to prevent burnout. Focus on a few objectives at a time and introduce additional changes gradually as you make progress. For example, if your aim is to build wealth in 2024, consider focusing on increasing your 401(k) contributions and starting an investment portfolio. Remember, financial milestones don’t need to be reached within a year. Small, achievable steps each year can significantly contribute to your long-term goals.
S: See what budget works for you
Budgeting is a personalized process that should align with your lifestyle. Regularly assess your saving and spending targets to gauge the effectiveness of your budget and make any necessary adjustments. Take time weekly to review your budget and tailor it to your financial needs. If a particular budgeting method isn’t working, don’t hesitate to switch it up to better suit your requirements.
O: Optimize your spending
Understand that how you spend your money reflects your aspirations, so it’s important to prioritize spending on things that matter to you. Monitor your expenses closely to identify areas of overspending and reallocate funds towards your goals. Adjusting your spending to align with your personal objectives is key. For example, if building friendships is a goal, allocate part of your budget towards social activities.
L: Learn about financial literacy
Increasing your financial knowledge empowers you to make informed decisions about your money. Educate yourself on money management, personal finance, and investments through various resources like professional advice, podcasts, or educational platforms. Tailor your learning experience to your preferences, whether through reading, visuals, or interactive sessions, to accelerate your financial literacy journey.
U: Use technology to your advantage
Take advantage of technology, especially artificial intelligence, to enhance your financial well-being. AI-powered apps can help analyze your spending patterns, categorize expenses, create personalized budgets, and devise strategies for paying off debts. Applications like Cleo and Wally streamline financial tracking and planning for better money management.
T: Time and patience
Recognize that improving your financial well-being is a gradual process that requires patience and self-compassion. Acknowledge even the smallest progress and understand that setbacks are natural. Practicing patience with your future goals and avoiding self-criticism are vital for sustainable financial growth.
I: Invest in your future
While investing may not be feasible for everyone, explore options like micro-investing platforms to kickstart your investment journey. Tools like roundup accounts can help you save for the future without significantly impacting your daily finances. Platforms such as Ellevest offer easy-to-understand investment opportunities for beginners looking to enter the investment world with minimal capital.
O: Optimism—focus on the positives
Adopting a positive outlook towards your finances by celebrating small wins and milestones can reinforce your commitment to your financial goals. Recognizing achievements such as reaching savings targets or reducing debt can boost your financial well-being through positive reinforcement, either by sharing your successes with others or appreciating them on your own.
N: Nurture your financial well-being
Approach financial goal-setting as a transformative journey that nurtures your overall financial mindset. Foster a positive and forgiving attitude towards your finances, avoid comparisons, practice patience, and address challenges directly to enhance your overall well-being.
How to implement the RESOLUTION Method this year (and beyond)
Unlike traditional financial goal-setting methods, Galloway’s RESOLUTION is cyclical rather than linear. You can revisit each step of the method repeatedly, gradually improving your financial literacy, well-being, and wealth over time. To effectively integrate the RESOLUTION method, focus on one letter each month for ten months of the year. For example, start with “R” in February and finish with “N” in November. Adapt the method to suit your personal goals and needs; if you prefer, you can tackle one letter per week instead of monthly to complete the cycle in a little over three months.
To stay on track with the RESOLUTION, set aside dedicated time to address these goals. Allocate an hour each week in your schedule to work on the current objective, making the method a seamless part of your routine. Consistency will lead to greater satisfaction with your financial situation as you progress through the RESOLUTION cycle. Here’s to achieving financial milestones in 2024 and beyond, year after year!
