MONEY RESOLUTIONS IN 2023

“An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves.”

–William E. Vaughan

Making new year’s resolutions is easy. I use the same ones as last year.

ACTUALLY, IT IS NOT THAT BAD

Jokes aside, I made some progress this year and will tell you about it. But the process made me wonder why the same resolutions always come up.

It turns out that most resolutions are related to money, even though the connection is not always obvious. So, we will dive deeper into the money aspects of popular new year’s resolutions and see how they also connect to your financial health.

RESOLUTION 1: LOSE WEIGHT AND IMPROVE YOUR HEALTH

This resolution is high on the list for most people.

And the desire to be healthier makes most people want to renew that gym membership and buy exercise equipment, right?

But, many of us end up using our exercise equipment as the world’s most expensive coat hangers.

After all, it is far more tempting to eat five large bags of Doritos, lay on the couch, and watch TV.

But eventually, I end up scraping on both sides of the hall when I do that.

The money reasons this matters

I know, on the surface of it, it makes little sense that money and fitness are related. But they are. Most millionaires make physical fitness a high priority. And when you stop to think about it, there is little wonder:

• The leading cause of bankruptcy is medical bills,
• Higher salaries are given to people who are good-looking and physically fit.

And about my progress

Yes, I lost a few pounds, but losing about 10 percent more of my body weight would be nice. Still working on that and expect to get there (eventually).

In my defense, the period between Thanksgiving and New Year’s does not help—it is a 24-hour per-day food orgy. Think of it as surrounded by legions of well-meaning people who force-feed you chocolate-covered cherries and pecan pie all day long. My weight gain and lack of discipline are their fault.

But, by contrast, exercise takes effort, which is not always an easy thing to do, especially when we are programmed by nature to conserve and save our energy.

It is instinctive. We only act when we think that wild beasts (or the equivalent) will chase us across the tundra.

At least, that is my excuse.

You see, our bodies are programmed for life as hunter-gathers–walking in groups for several miles a day, scavenging the landscape, and eating very few sweets or proteins. Five thousand years ago, when many of us were hunter-gatherers, there were not readily available cheeseburgers and milkshakes at the local drive-in.

So, to break nature’s grip on my instincts, I make a point of walking with friends several times a week to help stay fit.

That dedication is working, along with other exercises at the gym and at home.

RESOLUTION 2: SAVE MONEY

Again, this resolution is universal. You don’t hear too many people say, “hey, I want to buy a lot of worthless stuff, fritter away everything in my bank account and die in poverty.”

Saving money is one of the most common resolutions. But it is not always easy to do.

The money reasons this matters

The reason saving matters is because tomorrow comes, and we retire. And if you can no longer work, you need savings to live on.

Despite that, we are not doing well at saving as a country. About half of us would have trouble paying for an unexpected $1,000 expense. Even among people who earn more than $250,000 per year, about 20 percent don’t save anything.

I wish I were making that up.

One of the reasons I write this blog is to encourage people to save more.

And about my progress

I do not spend more than I take in, even now, as a person who retired at age 50. Old habits.

When I get money, some of it automatically goes to savings, where I do not touch it. Having it readily available is just too tempting.

But how has that saving strategy worked in practice? So far, so good.

I have done my annual net worth analysis and ended up slightly positive for the year, despite some heavy expenses. I wish I could tell you I made money in the stock market, but not this year. The markets have stunk, and my performance in that investment arena has too.

The year could have been worse, though. Elon Musk’s net worth dropped by nearly $140 billion.

It was a rough year for him, but I think he will be all right.

RESOLUTION 3: LEARN SOMETHING NEW

Most people like a challenge. For instance, they want to learn to play a musical instrument, play a new board game or learn to paint. And it turns out that the difficulty in learning a new skill is good for you. By trying and failing, you create new brain connections that help you eventually succeed.

The money reasons this matters

It is no accident that most successful people are lifelong learners. They use their new skills to earn more and to stay involved. In addition, some recent research shows that consistent reading and learning may help you live longer.

And about my progress

I am trying to learn a new skill. I have never been interested in marketing but trying to improve at it.

A nonprofit I help run has begun to market itself aggressively, and I am watching carefully. What I previously considered a dull, somewhat manipulative skill holds a new fascination for me.

It has inspired me so much that I may use my new skills to market MMH and spread the word about sound money management in 2023. As always, I am not trying to make money from MMH–just spread awareness.

But the complexity of social media means I must learn entirely new skills. I will likely hire some help too.

And I will have to write more often than once every two weeks to be effective.

RESOLUTION 4: GIVE BACK—VOLUNTEER, DONATE AND CONTRIBUTE

Most of us want to be more charitable, whether donating money or even just giving a kind word to others.

The money reasons this matters

The most successful people I know think first about what they can do for others. They don’t consider relationship building a one-way street that solely benefits them. If they are in the marketing or sales arena, they think first about how their products help their clients, not the commission they will earn. If they are building personal relationships, they look at it as a kind of partnership with their friends.

Some personal and monetary benefits of that approach are listed here.

And about my progress

We continued for another year by donating money and time to others. I work closely with one nonprofit. In addition, my spouse contributes her time to several nonprofit ventures.

We want to keep helping. I hope that reading MMH has helped you.

HOW TO GET STARTED ON RESOLUTIONS AND FOLLOW THROUGH

Taking action and following through is not easy. To get started and succeed, there are some tips here.

Have a happy and healthy 2023!

Disclaimer: consult with a financial fiduciary before taking any steps outlined here. Not all advice may be suitable for your circumstances or investment style.

Photo Credit: Kelly Sikkema

License: Unsplash