Why Resolutions Fail and Habits Win Every Time

January 1st rolls around, and suddenly everyone becomes a self-improvement guru. Gym memberships spike, productivity apps get downloaded en masse, and social media fills up with declarations of transformative change. But here's a controversial take: New Year's resolutions might be holding you back from real success. As a financial advisor working with NYC's top professionals, I've seen firsthand how the "resolution mindset" can prevent meaningful change.

Here's the truth: If you want something badly enough, you don't need to wait for a specific date to start. Whether it's July 15th or December 3rd, the best time to begin is now. (Though if you're reading this in January, today works too!) The key isn't in the timing—it's in the approach.

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Why Resolutions Don’t Work

Did you know that the second Friday of January is National Quitter’s Day? Not exactly a holiday that gets a lot of attention—who wants to celebrate failure? But it’s true—a 2019 study found that by the second Friday of January, nearly 80% of people who made a New Year’s resolution had abandoned their resolution.

So why don’t resolutions work? Think about the most common resolutions—losing weight, saving money, learning a new skill. They often fail because they’re vague, overly ambitious, or reliant on sheer willpower.

For example, saying, "I want to save more money this year," sounds great, but without a clear plan or specific steps, it’s just a nice thought. And willpower? Let’s be honest: it’s not as reliable as we’d like to believe. By February, your motivation fades, and you’re back to your old habits.

The truth is that success isn't about grand gestures or big decisions. The secret is in the small, consistent actions you take every day. That’s why habits—not resolutions—are the real game-changer.

Think of it like compound interest for your personal development. Those tiny 1% improvements add up to massive changes over time. Just as your investment portfolio grows through compound interest, your personal and professional growth compounds through consistent habits.

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How to Create New Habits

Creating new habits isn't about willpower or motivation. It's about systems and consistency. You don’t just say, “I’ll save $1 million,” and expect it to magically happen. You set up automatic contributions, track your spending, and revisit your plan regularly. Habits are no different. Here are some tips to get you started:

• Make It Specific: Instead of saying, “I want to get healthier,” say, “I will go for a 20-minute walk every day after lunch.” Specificity gives your brain clear instructions and removes ambiguity.

• Start Small: Don’t try to overhaul your entire life overnight. Begin with something manageable. Want to save more money? Start by transferring $500 to your savings account every payday. Small wins build momentum.

• Anchor to Existing Habits: Pair a new habit with something you already do. For example, if you want to read more, commit to reading 10 minutes after brushing your teeth at night. This "habit stacking" technique makes it easier to remember.

• Track Progress: Whether it’s a habit tracker app or an old-school notebook, seeing your streak grow can be incredibly motivating. Progress, even if it’s small, keeps you moving forward.

• Celebrate Small Wins: When you hit a milestone, reward yourself. And no, I’m not talking about blowing your savings on a new car—think of something that aligns with your goals, like treating yourself to a relaxing weekend away or a quiet night out with your significant other.

• Prepare for Setbacks: Habits aren’t about perfection. Life happens, and you’ll occasionally miss a day. The key is to get back on track quickly without guilt or frustration.

Rome wasn’t built in a day and neither are good habits. It takes time and consistency to make a change stick.

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Daily Habits for Success

Want to know what separates the ultra-successful from the merely ambitious? It's not talent or luck—it's their daily routines. Having worked with some of NYC's most successful professionals, I've noticed patterns that consistently emerge among those who achieve extraordinary results.

Here are some habits that can set you up for financial and personal success:

• Morning Rituals: Start your day with intention. It could be a 10-minute meditation, a quick workout, or simply sipping your coffee while planning your day. A focused morning sets the tone for productivity.

• Plan Your Day: Take a page from Bill Gates’s book and plan your day meticulously. Planning your day is essential because it helps you prioritize your tasks effectively and ensures you allocate your time and energy toward activities that align with your goals.

• Make Time for Deep Work: Carve out distraction-free time for your most important tasks. By doing so, you will be more productive.

• Network Consistently: Building relationships isn’t a one-time event. Make it a habit to reach out, follow up, or check in with people in your network. Strong connections open doors.

• Automate Where Possible: From savings to meal prep, automation can free up your brainpower for bigger decisions. Why spend mental energy on things that can run on autopilot?

• Take Care of Your Health: Exercise, eat well, and get enough sleep. Your wealth won’t mean much if you’re not healthy enough to enjoy it.

• Continuous Learning: Read, listen to podcasts, or take courses to sharpen your skills.

• Practice Gratitude: Take a moment each day to reflect on what you’re grateful for. Gratitude shifts your mindset and helps you focus on the positives.

• Reflect and Adjust: At the end of each day or week, take time to review what worked and what didn’t. Did you stick to your habits? What could you improve tomorrow? Regular reflection helps you course-correct and stay on track.

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The Long Game

I know what you’re thinking: “This all sounds great, but how do I actually make it happen?” Let me tell you a little story from my early days as a financial planner.

When I started my career, my boss hit me with a goal that seemed as achievable as fitting the entire NYSE trading floor into a New York studio apartment: bring in $10 million in assets that year. Talk about a "sink or swim" moment!

But here's the kicker —I didn't focus on that big, scary number. Instead, I broke it down into daily habits and activities. Cold calls to executives. Networking events. Focusing on the small, consistent actions that would eventually lead to that big goal.

And you know what? It worked. Not because I'm some financial planning prodigy (though my mother might disagree), but because I built the right habits and stuck to them.

These days, I set my goals much bigger and on a longer timeline. I create a five-year vision and outline the activities I'll do each year to get there. Writing monthly blogs or creating weekly YouTube videos is an example.

Will these specific activities guarantee I hit my yearly goal? About as much as a fortune cookie can predict the stock market. But I do know that if I'm consistent, I'll be miles ahead of where I am now. And that's the whole point.

Most people overestimate what they can do in a year and underestimate what they can accomplish in five years with consistent habits. Small, consistent actions can lead to massive results over time.

Think about it this way: The summit can seem impossibly distant if you're climbing a mountain. But if you focus on taking the next step and then the next, eventually, you look back and realize how far you've come. Financial success works the same way. Each good decision, each smart habit, builds upon the last.

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Don’t Wait for the Perfect Time

If you’ve been waiting for the perfect time to start—it doesn’t exist. The best time to start building better habits is now. Not tomorrow. Not next week. And definitely not next January. The sooner you start, the sooner you’ll see progress.

Building better habits is a journey, and sometimes, it helps to have a guide. Whether you're looking to create financial habits that align with your long-term goals or need help defining those goals, Servet Wealth Management is here to help.

Let’s start the conversation today. Schedule a meeting, and together, we’ll create a plan to turn your big dreams into achievable milestones. So, skip the New Year’s resolutions and start building habits that will serve you for years to come.

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