The Best - and Worst - New Year’s Financial Resolutions

The start of a new year brings a familiar wave of motivation. Gyms fill up, calendars reset, and financial resolutions make their annual appearance. While setting goals can be helpful, not all financial resolutions are created equal—especially for individuals who are already financially established.

Some resolutions genuinely improve long-term outcomes. Others sound productive but often lead to frustration, poor decisions, or no meaningful change at all.

As we enter a new year, here’s a look at the best and worst financial resolutions—and how to make sure your efforts actually move the needle.

The Best Financial Resolutions

1. “I Will Review My Entire Financial Plan”

This is one of the most effective resolutions you can make—and one of the least common.

Markets change. Tax laws evolve. Life circumstances shift. A comprehensive annual review helps ensure your investments, tax strategy, retirement income plan, and estate documents are still aligned with your goals. Your entire financial plan goes well beyond just investments. Be sure to include areas like estate planning, beneficiaries, and various insurance policies. 

Why it works:

It encourages proactive decision-making instead of reactive behavior driven by headlines or market swings.

How HCM can help:

Your advisor is eager to meet with you and can do so virtually or in person – whichever works best for your schedule. A simple email or phone call to set this up is all you need to do.

2. “I Will Be More Intentional About Taxes”

For many households, taxes represent the largest lifetime expense. Yet tax planning often gets reduced to last-minute scrambling in March or April.

A strong resolution focuses on:

• Managing tax brackets over multiple years
• Coordinating investment decisions with tax consequences
• Evaluating Roth conversions, charitable strategies, and capital gains planning

Why it works:

Small tax decisions made consistently can produce large cumulative benefits over time.

How HCM can help

At HCM tax planning is part of your financial plan and is included at no cost.  Learn more below.

 View HCM’s tax planning and CPA Services 

3. “I Will Align My Financial Portfolio with My Actual Goals”

This resolution recognizes a common problem: portfolios that no longer reflect reality.

Your investment strategy should match:

• Your time horizon
• Your current and future income needs
• Your tolerance for volatility
• Your broader financial plan

Why it works:

It replaces generic asset allocation with purpose-driven investing, helping reduce emotional decisions during market stress.

The Worst Financial Resolutions

1. “I Will Time the Market Better This Year”

This resolution appears every January—and disappears by March.

Trying to predict market tops and bottoms is one of the fastest ways to underperform. Even experienced professionals struggle to do it consistently.

Why it fails:

It relies on prediction instead of process and often leads to emotional decisions.

2. “I Will Completely Change My Investment Strategy”

Major overhauls driven by short-term frustration rarely end well.

Whether it’s abandoning a long-term plan after a bad year or chasing the latest “hot” asset, drastic changes usually create more risk—not less.

Why it fails:

It confuses activity with progress and often ignores long-term objectives.

3. “I Will Just Spend Less”

While budgeting has its place, vague resolutions to “cut spending” often lack structure and sustainability.

For financially established households, the bigger question is usually how to spend intentionally, not how to eliminate enjoyment.

Why it fails:

It focuses on restriction rather than alignment with values and priorities.

4. “I Will Figure This Out Later”

Procrastination is one of the most expensive financial habits.

Delaying decisions around taxes, retirement income, estate planning, or healthcare can quietly erode flexibility and increase long-term costs.

Why it fails:

Time is often the most valuable asset in financial planning—and it’s one you can’t recover.

A Better Way to Think About Financial Resolutions

The most successful financial resolutions are not about dramatic change. They’re about clarity, consistency, and coordination.

Instead of asking:

• “How can I make more money this year?”

Try asking:

• “How can I make better decisions with the money I already have?”

That shift alone can lead to a more confident, controlled, and rewarding financial year.