Make Money Resolutions You'll Actually Achieve

Show of hands: How many of you achieved your New Year's resolutions for 2007? Or better yet, who even remembers them at all?

If you can actually locate the crumpled cocktail napkin with last year's resolutions, statistically speaking, you've probably made some headway. Studies show that those who set goals and -- this is the important part -- commit them to paper are more successful in achieving them.

Before you grab scrap paper and a Sharpie, put thought into composing money resolutions for 2008 that you'll actually be motivated to carry out. To frame your thinking, you can…

1. Compose resolutions based on the teachings of goals gurus.
Are your goals S.M.A.R.T. (you know -- specific, measurable, attainable, realistic, and tangible) or the S.M.A.R.T.E.S.T. (add "engaging," "shifting goals," and "team effort" to the mnemonic)? Did you "find your 'why'" -- and are you "happy to achieve rather than achieving to be happy"?

Or…

2. Scrap the acronyms and take a goal-setting shortcut.
If goal-speak works for you, fantastic. But if you're more apt to get where you want by following the path of least resistance, then try this two-bucket approach to money resolutions.

The two-checklist resolution solution
There are two types of resolutions: The first category includes tasks with a finite end date: "finish taxes in February," "roll over old 401(k) into an IRA," or "pay off car loan 6 months early." The tasks may be tedious, but once they're done, they're done!

The second category is comprised of ongoing behaviors -- or worrisome financial habits -- that you want to change. Things like "stop buying stupid stuff" or "invest more money this year" are routines you want to introduce to your financial repertoire.

How to make those resolutions stick
Thanks to technology, troubling financial behavior can be easily overcome. If "pay bills on time" is an issue, automating your bill payments through your bank will make sticking to that resolution a snap.

Other financial habits -- such as "track spending more closely" -- are a bit trickier (new patterns don't form overnight, you know) and require a daily, conscious effort until they become routine. But if you repeat the process long enough, good habits will become second nature.

To make such behavior routine, try a few of these tricks:

The power of 10: Procrastinators and commitment-phobes take heed -- anyone can stomach just about anything for 10 minutes. Set a timer and give it a shot. If after 10 minutes you need a break, no problem. But don't be surprised to find yourself resetting the buzzer and sticking it out until you're all done.

The power of 17: Repetition isn't just good for improving your golf swing. Studies show that if you do something 17 times without a lapse back to your old ways (e.g., always choosing salad over fries or cash over credit), the act will become second nature.

The power of publicity: Accountability is a powerful motivator, so don't keep your objectives a secret. Websites like MyGoals.com, MyGoalManager.com, and BackPackIt.com allow you to share your goals with others online. Or simply hang your resolutions on the fridge for the whole family (and housekeeper and dog walker) to see.

The power of planning: As a friend of mine is fond of saying, "Don't wait until the morning to start reforming." Preparation is key, and it helps you stick to your resolve when it's game time. You can also plan ahead for problem areas -- like leaving the credit cards at home when hitting the mall with a pal or formalizing a vacation budget for meals, gifts, and entertainment before getting on the plane.

The power of alliteration -- the three R's: OK, there is one goal-speak mnemonic I like: the three R's (review, re-evaluate, rewrite). Life is fluid, and goals should be, too. As you make progress on your tasks, you'll need to compose new to-do steps on your action plan. And I'll add a fourth R: reward. Formalize (a.k.a. write down) specific rewards for reaching major and minor milestones.

Good financial habits have tangible benefits over time. Think about what it'll be like to start January 2009 with no credit card debt, a fatter retirement savings account, no looming car loan, and an actual savings plan for big-ticket items. Go ahead and get going on your goals.

Motley Fool consumer finance expert Dayana Yochim admits to writing items on her to-do list that she's already done just so she can cross something off. However, that practice is verboten over at GreenLight.Fool.com, where Dayana dishes hands-on investing and money management advice.