31 Jan 2025

Thinking: New Year, New Plans

A new year often brings a chance to pull out a fresh sheet of paper, and decide what you want to change, or do better, or even just get done that you know you’ve been postponing.  But “New Year’s Resolutions” have a nasty habit of going stale in the dog days of February. So how do you stick with something and see it through?

In “Atomic Habits”, James Clear describes how, “every action you take is a vote for the kind of person you want to become”. He argues that behaviours are most likely to become habits, lasting changes, where they are part of who we are, not just what we do. When our identity is of being someone who likes to eat well, or exercise with a particular group of people, or deliberately seek out discussions and learning on particular topics or issues – with time those things become part of the fabric of our identity, rather than merely aspirations.

Among his suggestions for embedding habits are:

• Designing your environment or surroundings to embed good behaviours and hide temptations
• Listing what you are wanting to do, tracking your habits, and rewarding yourself for getting it done
• Building rituals and looking to ‘automate’ behaviours so that they no longer require will-power

When it comes to embodying changes, Clear also pinpoints the difference between “being in motion and taking action”. When you’re in motion you’re planning, learning, strategizing – all valuable in their own way – but only action delivers an outcome. He illustrates how habits can be “atomic”, that is, they start with the very smallest pieces and build into tremendously powerful chain reactions. One example he gives is how beginning with just a few minutes of exercise a day can lead to significant change as you make something routine and eventually automatic, rather than the huge effort that going from thought to action often involves.

Many of the examples of Atomic Habits highlight that joining others can help to reinforce a habit. In personal development this is often referred to as having an accountability partner. When it comes to planning your personal finances, building a long-term relationship with someone you trust and who understands what you need and want, and who will check in with you regularly, will help to keep you in good habits while adapting to changing circumstances. Thereby reinforcing behaviours that lead to the person you want to become. Whether that be someone who has choices on when and how to slow down or retire; or who has made sure their loved ones will be ok if something happens to them; or who would like to be able to help or support other family members with some of their capital.

Finally, for a habit to really embed itself, it has to be satisfying in some way. In my experience that comes down to working with a financial planner who you enjoy speaking with, and who genuinely cares about you and your needs. If your meetings feel like a cross between an insurance salesman and going to the dentist, particularly given that there is always going to be some level of annoying paperwork in the highly regulated environment of financial services, you’re probably not going to enjoy things enough to derive the full benefit out of working together. Find someone who makes it feel worthwhile discussing things that matter to you, together.

If you would like to discuss your priorities for the new year, or there are things in your finances that you know you’re putting off even though you shouldn’t – please book a free initial chat together:

https://calendly.com/duncan-bw-hoebridgewealth/30min

The content of this article is for information purposes only and does not constitute advice. It is not an offer to purchase or sell any particular asset and it does not contain all the information which an investor may require in order to make an investment decision. Please seek professional advice before entering into any financial arrangement.