It's that time of the year again. Over the next couple weeks, we will read about 40 blogs on this website alone regarding New Year's resolutions, how to make them, why to make them, why NOT to make them, etc. Let's make that 41... well sort of.

See, I'm not a big fan of resolutions, probably because they don't work. But what people don't understand is WHY they don't work. We tend to blame ourselves when that diet/budget/exercise regimen fails. What we don't realize is that resolutions fail because they are designed to fail by their very nature.

We make resolutions because they are "lines in the sand". The new year is a convenient time to draw these lines because we see it as a clean slate. Resolutions provide us with the opportunity to state that we will NO LONGER do this, or NEVER AGAIN do that, or ALWAYS do something else. Then the minute we slip up, we have dirtied the slate and begin to look to next week/month/year instead, and soon our grandiose plans go out the door.

Think of it in a biological sense. Why do we hear that a gradual diet is more effective in the long term than a cold turkey one? Because it takes time to retrain your body. If you take something away that your body has become dependent on, it will crave it more than ever. (see nicotine, alcohol, caffeine) Instead train your body to become dependent on other things (see adrenaline, endorphins, fruit and veggies), and in time it has a healthy dependency rather than a destructive one.

Personal Finance works the same way. Don't resolve to eliminate half of your discretionary spending this year and then expect to do it by January 31st. Give it more thought and set short-, medium-, and long-term goals. Be patient with yourself and understand that it takes time to create lasting change. Here are some popular tips to review in your goal-setting:

1. Make them SMART (specific, measureable, attainable, realistic and timely).
2. Review them often. This means every month, week and day if you need to, in order to remain focused.
3. Give yourself a reward for completion. Put the carrot in front of the horse, if you will.
4. Write them down (write, not type). I don't recall what the differential is, but goals are extremely more effective when we write them down. There is something in the physiological act of writing that increases accountability to one's self. (and be sure to SIGN your name at the bottom)
5. Share them with others. This website is a tremendous forum for doing just that. Write a blog entry and share your goals with us. Ask questions if necessary. Let us know when you feel weak and unfocused and we can help you stay on track.
6. Reward Progress. I'm not saying your should go on a spending binge to celebrate, but a

One caveat: I do believe that January 1st is a great time to start, specifically from a measurability standpoint. It makes things easier to monitor how many days, weeks, months you have been successful. (especially this year, since 1/1 is at the beginning of a week, on Sunday)

That gives you 3 days. Get going and good luck with your goal setting. Happy New Year to All!