In the last edition, we covered part one of making financial resolutions for 2026. The first part is uncovering information to target problem areas and implementing positive steps to change behavior.

In this second part, we will consider why resolutions are so easily broken. We do not keep resolutions because the goal is not important enough to make changes. Until the goal is important, there will be no meaningful change in behavior. The reality is that we often wait until we feel pain before making changes.

One of my favorite quotes is, “And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.” Anaïs Nin

I found this quote when I needed the courage to start my own business, and pain was at the root of my quest. Pain also helped to shape my approach to financial planning when my family faced debt more than 20 years ago. I have learned that we usually change when:

1. Pain from the status quo is intolerable, or
2. The goal becomes important to result in action.

The problem with waiting until pain is unbearable is that we make irrational decisions. It is easy to feel overwhelmed and paralyzed.

We change our circumstances by changing ourselves. This is what makes uncovering information about problem areas in the budget so important. Changing the entire budget is overwhelming. Changing one category in the budget is much easier. Even a small win is enough to inspire more improvement.

Discipline, grit, and determination are not enough. One of my greatest success stories is helping a family avoid bankruptcy just by dining out less. Seven years later, they paid off their mortgage and paid down credit cards to a manageable amount. All I did was review past spending which revealed uncontrolled spending on restaurants. One change led to more and bigger positive steps, all made possible by uncovering one problem area.

Success is best divided into simple steps. Your odds of keeping resolutions this year are high if you start by picking just one budget category to monitor and focus on doing better.