Home Personal Finance Why the Resolution Method Is Your Key to Financial Wellbeing

Why the Resolution Method Is Your Key to Financial Wellbeing

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In 2024, more than any year before, I’ve been hearing about people setting financial goals for themselves at the beginning of the year. Whether I’m chatting with my friends, my mom, or my coworkers, it seems that everyone is ready to tackle their finances in a new way. As someone who repeatedly fails to achieve the financial goals I set at the beginning of the year, I’m always on the lookout for new ways to frame and reframe my own financial wellness so that something, anything, sticks. When I stumbled across the RESOLUTION method, coined by Georgia Galloway, a finance expert at Finbri, I knew I had found something special that even my numerically challenged brain could grasp.

Whether you’re like me and you’re just getting started on your financial wellness journey, or you’re simply looking to refresh and revive your enthusiasm for your financial health this year, the RESOLUTION method has you covered. Below, we’re breaking down this super easy-to-grasp financial wellness plan, plus a few examples of how to implement it in your own life.

What is the RESOLUTION method?

Unlike traditional goal-setting, the RESOLUTION method breaks down 10 ways that you can tackle and handle your finances. We all know by now that most New Year’s resolutions are abandoned within a few weeks, which is obviously not great if we’re trying to build wealth. Galloway created this method as a nurturing tool for financial health rather than a way of attempting to tackle all of our money goals all at once. This method is about small positive changes: You can implement these 10 steps over several months or even throughout the entire year. With each new letter in “RESOLUTION,” you’ll get one step closer to the financial wellness you’re dreaming of—so you can look back at the end of the year and feel proud of how far you’ve come. Ahead, we’re breaking down each of the 10 steps in the RESOLUTION Method.

Georgia Galloway, Finance Expert at Finbri

Georgia Galloway is a UK-based finance broker who specializes in bridging loans and property development finance. Her data analysis and insights have appeared in The TelegraphMetroBloomberg, and more.

R: Reimagine your relationship with money

In the first step of the RESOLUTION method, Galloway recommends reevaluating your relationship with your finances. “From doing a daily bank account check instead of letting anxiety force you to avoid taking a look to discussing financial worries with friends and family rather than keeping it to yourself, there are lots of ways to improve the relationship you have with your money,” she says. Reimagining your relationship with your finances might look like setting a weekly “money date” with yourself to spend some time with your budget and investments, having open and honest conversations with friends and family about rent and salary, or even journaling through your financial past and potential future. This step will look slightly different for everyone, but the most important part is that it involves some self-reflection. Asking yourself how you have approached money in the past, as well as how money makes you feel in the present, will set you up better to plan for your future.

E: Establish realistic financial goals

According to Galloway, burnout is a huge problem when it comes to financial goals. “​​Don’t try and change everything at once, or you can get overwhelmed and be more likely to give up,” she says. “Focus on one or two things that you want to improve at a time, and gradually make other changes and improvements as you go.” When you’re ready to set some goals for yourself, make sure they are attainable and realistic. For instance, if you have a goal to build wealth in 2024, perhaps narrowing that goal down to increasing your 401(k) and starting a basic investment portfolio can be a great way to get more realistic. Remember that you don’t have to hit your lifelong financial goals by the time 2025 hits. Taking small, realistic, and attainable steps every year will help you achieve your goals soon enough.

S: See what budget works for you

Budgets are one of those things that everyone needs to tailor to their own lifestyles. For some, the basic 50/30/20 method might make perfect sense, but if it doesn’t, there are tons of other ways to set up your financial targets. According to Galloway, the best way to see what budget works for you is to check back in regularly with yourself to see if you are able to meet the saving and spending goals you initially set. “Take 10 minutes each week to review how your budget is going and see if there are ways to adapt it,” she says. This can be part of a weekly “money date” where you check in with yourself about your finances. If a budgeting method isn’t working for you, don’t be afraid to scrap it or adjust it to fit your financial needs.

O: Optimize your spending

Money is a form of manifestation, which is why spending our hard-earned dollars on things that truly matter to us is critical. The way we allocate our finances reflects our personal goals: For instance, if you have a goal to boost your fitness routine, you might spend more on workout classes or programs; if you have a goal to buy a house someday, that objective manifests in your saving. “Keeping a close eye on what you’re spending, whether it’s with an app, a spreadsheet, or keeping a money diary, will help you understand better where you are overspending so you can make adjustments to your budget,” Galloway says. If you’re using a budget tracker, actually tracking in that budget tracker is crucial. Additionally, adjusting the categories of your spending to match your personal goals is super important. For instance, if one of your goals this year is to spend more time with your friends, allocating some of your budget to social activities is a way to optimize your spending.

L: Learn about financial literacy

It’s time for the financial world to stop gatekeeping because in 2024, gaining financial literacy is the top way to become empowered in your money moves. “Educating yourself about things like money management, personal finance, and investments will make you feel more confident in your financial decisions,” Galloway says. “Just a little time to increase your knowledge—whether you speak to a professional, listen to a podcast, or scroll through the 4.5 billion views on #FinTok—can make a big difference.” When it comes to becoming financially literate yourself, consider your learning style. Do you learn best from reading and highlighting books? What about watching videos and looking at infographics? Or will you retain information best with in-person guidance? Leaning into your learning style will help you gain financial literacy much more quickly.

Source: @mikhail-nilov | Pexels

U: Use technology to your advantage

You knew this was coming. It’s time to use AI to power your financial well-being! “AI is revolutionizing many aspects of our lives, including the way we make budgets and organize our finances,” Galloway says. “AI-powered apps can help you analyze your spending patterns and behavior, categorize your expenses, create personalized budgets, and even help you make a plan to get out of debt.” Cleo is a budgeting app that acts as your personal finance assistant, guiding you through monthly bill tracking and financial planning. Similarly, Wally can help you get a personalized savings plan and will automatically categorize your spending to get a high-level view without having to painstakingly track your finances.

T: Time and patience

Step seven of the RESOLUTION method is essentially where you have an opportunity to sit back and take stock of everything you’ve achieved thus far. “Remember that improving your financial well-being is a gradual process and can’t happen overnight, and setbacks are natural… go easy on yourself!” Galloway encourages us. Even if it feels like you still have a long way to go toward reaching your financial goals, it’s important to recognize how far you’ve come, plus practice patience when it comes to your future goals. Beating yourself up for buying an overpriced latte will do nothing for your financial well-being in the long run.

I: Invest in your future

With regards to this step in the RESOLUTION method, Galloway recognizes that investing is not always possible for everyone, especially in the face of a cost of living crisis. With that said, though, everyone who is capable of investing absolutely should. “Investing isn’t reserved for the rich; you can start with micro-investing platforms that allow you to invest small amounts,” she says. “If you can, try using a roundup account, that will round each payment you make to the nearest dollar and put the difference into a savings account so you can save money for the future without really noticing.” Platforms like Ellevest are great places for beginners who want to learn investment basics with a small amount of money to start.

O: Optimism—focus on the positives

With finances, it can feel like there’s a lot of doom and gloom floating around sometimes. Whether you’re obsessed with reading economic news or dealing with extra financial stressors as an individual, slipping into a pessimistic mindset about money sometimes feels easier than looking on the bright side. Plus, if you’re approaching your finances from a lack mindset, this can quickly spiral into feeling like you can never have enough. According to Galloway, an essential part of healing your relationship with money is focusing on the small wins and positives. “Remember to acknowledge and celebrate financial achievements, whether it’s reaching a savings goal, paying off debt, or successfully sticking to your budget for a week,” she says. “Positive reinforcement for small achievements, as well as big milestones, will help you stay committed to your financial resolution!” This positive reinforcement doesn’t have to look like spending money, either: It can also mean sharing your small wins with friends and family.

N: Nurture your financial well-being

In the final step of the RESOLUTION method, Galloway asserts that setting financial goals is not about achieving targets but rather about shifting your relationship with finances altogether. At the end of the day, finances are deeply intertwined with our daily lives, and we can’t ignore that fact. “By trying to embrace a more positive and forgiving attitude, avoiding comparing yourself to others, being patient, and dealing with issues head-on rather than hoping they’ll go away, you can improve your overall well-being,” Galloway says.

How to implement the RESOLUTION Method this year (and beyond)

Unlike traditional financial goal-setting, Galloway’s RESOLUTION is not linear but circular. Instead of climbing up a perceived financial ladder, you can revisit each step of this method over and over again, gradually building your financial literacy, well-being, and, in turn, your wealth itself. The easiest way to implement the RESOLUTION method is to address one letter per month for 10 months of the year. For example, you could begin with “R” in February and finish with “N” in November. However, you can tailor the method to your personal needs and goals—if you wanted to address one letter per week instead of per month, you would find yourself at the end of the cycle in just over three months.

In terms of keeping the RESOLUTION top-of-mind, you’ll do best by setting aside dedicated time to address these goals. Block off an hour once per week in your calendar to address the goal that you’re currently trying to tackle and voilá—after a few weeks, the RESOLUTION method is a seamless part of your routine. Before you know it, you’ll be back at the beginning of the RESOLUTION cycle, happier with your wallet than you were when you started. So, here’s to crushing our financial goals in 2024… and again in 2025, and each year after that.

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