By Douglas Walters, CFA Strategic Financial
Here’s a question: Why do most New Year’s resolutions fail by February? It’s not because we’re lazy—it’s because lasting change is hard, and relying on willpower alone is an uphill battle.
But here’s the good news: the improvements we aim for each January can have a profound impact on overall well-being. Research shows1 that life satisfaction stems from a mix of career, social, physical, community, and yes—financial health.
I’ll leave diet and exercise advice to the experts (still working on that myself). But when it comes to your wallet and retirement plan, that’s my lane. So, let’s dive in.
Start Small: The Power of Marginal Gains
It’s time to start thinking small. Instead of chasing sweeping changes that are hard to maintain, focus on small, consistent wins. Consider Sir Dave Brailsford, who transformed a sub-par British cycling team by applying a philosophy of “marginal gains”—tiny, evidence-based improvements like better aerodynamics, avoiding handshakes to minimize illness, and even painting the team truck floor white to spot dust. The result? Eight gold medals at the Beijing Olympics.
Your financial life works the same way. Small, achievable steps can compound into big results over time.
Think Holistically, Act Incrementally
One problem we all face is knowing where to start. A comprehensive financial plan covers significant ground:
- Goals: What matters most to you?
- Budget: Are you tracking and sticking to it?
- Taxes: Are you saving and giving efficiently?
- Retirement: Will your resources last?
- Investments: Are they aligned with your risk tolerance?
- Insurance: Are you protected from life’s curveballs?
- Estate: Are your documents in order?
- Education: Are you saving for loved ones?
That’s a lot, and it is only scratching the surface of a good plan. Trying to tackle everything at once is overwhelming. Instead, put your British cycling helmet on, and break it down into small incremental improvements.
Clarity and Confidence
So, where to start? I would recommend beginning by creating clarity around what is most important to you today. When you know what matters most and have a plan to get there, everything feels less overwhelming. Begin with the essentials:
- Never created a budget or emergency fund? That’s step one.
- A house and family, but no will or life insurance? Start there.
- Not maxing out your 401(k)? Consider bumping contributions by 1%.
- Unsure if your investments match your goals? Take time to review and adjust.
These aren’t dramatic changes—they’re small, achievable steps contributing to momentum that can build and compound over time. Focus on progress, not perfection.
Confidence comes next. It’s what happens when clarity turns into action. When you can see the roadmap and measure progress, you feel more secure about the future. That sense of confidence isn’t just about numbers; it’s about peace of mind. Like the British cycling team, incremental improvements can transform an average plan into an exceptional one.
Three Action Steps for 2026
Ready to start? Here’s a simple framework to kick off the year:
- Update Your Goals: Get clarity on what is most important to you today.
- Take a Few Baby Steps: Choose 1-3 achievable actions you can take today to better your plan.
- Schedule a Financial Check-Up: A fresh perspective from a trusted advisor can uncover opportunities and risks you might miss.
The new year is about fresh starts. If you want clarity and confidence in your financial life, now is a great time to take action. Remember: small steps forward can lead to big results over time.
Douglas Walters is the Chief Investment Officer at Strategic Financial Services, an SEC-registered investment adviser. This article is for informational purposes only and does not constitute personalized investment advice.
- Gallup. (2010, May 4). The five essential elements of well-being.
