Millennial Money: 3 vague financial resolutions to avoid

As we close out 2020 and enter 2021, most of us are anxiously awaiting a happier year ahead. Traditionally, we mark the fresh calendar year with New Year’s resolutions to keep us hopeful and motivated — particularly when it comes to our finances.

If all goes well, by this time next year, you’ll be posting on social media about how you crushed your 2021 #goals.

But that post will be a lot less likely if you set resolutions that aren’t attainable in the first place.

To increase your chances of success, here are three financial resolutions to avoid this year — and some better alternatives instead.

SPEND LESS MONEY

It’s probably the most basic financial goal: spending less. But as well-intentioned and financially responsible as it sounds, it probably won’t yield the greatest results over the next 12 months.

“Focus on savings goals as opposed to budgeting goals,” says Taylor Venanzi, certified financial planner and owner of Activate Wealth in Philadelphia. “And then you kind of back into your budget from there.”

If you really want to save more money in 2021, make it your mission to set aside a specific percentage of your income each month, Venanzi recommends.

This approach will help you spend less by taking savings off the top. Working from a percentage — say, saving 20% — is also beneficial because you won’t be comparing yourself with anyone else. Someone else may save $500 a month, but you can calculate and save a dollar amount based on your own income that works for you.

Just make sure you’re actually saving money rather than just rearranging it, says Sean Rogers, CFP, owner of Capital Stewardship Partners in Grand Rapids, Michigan.

For instance, if you’re putting more money in savings each month but then charging more to your credit...