It’s officially month two of the new year, and by now, over half of all New Year’s resolutions have already been abandoned. According to research cited by Forbes, nearly 80% of people give up on their resolutions by this point.
The natural question is "why?"
Some say goals are simply unrealistic. Others argue that people take on too much at once. And sometimes, even the most well-intentioned resolutions fall apart because life looks very different than it did on January 1st. I think the truth is that everyone has their own reason, some more justifiable than others.
I know I’ve dropped my fair share of resolutions. Looking back, most of them weren’t abandoned because I didn’t care. They were abandoned because of all-or-nothing thinking.
All-or-nothing thinking is the belief that if something can’t be done perfectly, it’s better not to do it at all. In the moment, it sounds logical. “I missed a month, so I’ll start fresh later.” “I can’t save as much as I want, so I’ll wait until I can.” “This just isn’t the right year.”
The problem isn’t the goal. It’s the expectation of perfection.
This mindset shows up in many areas of life, but financially it can have a meaningful long-term impact. Unlike other goals, money decisions are heavily influenced by time. Delaying action, even with good intentions, can quietly work against you.
Why Starting Early Matters
Let’s look at a simple example.
Meet Jane and John. Both earn $80,000 per year, are single, and have no children. Their financial situations look nearly identical, at least on paper.
Jane decides to invest $200 per month into a brokerage account earning 5% annually. She does this consistently for five years. Life then changes. She gets married, has children, and no longer has the discretionary income to continue contributing. Rather than doing everything perfectly, she simply stops.
John’s situation is different. Between a car payment and the convenience of eating out most nights, saving $200 per month doesn’t feel realistic. His plan is to wait until things are easier. He tells himself he’ll start investing once he earns more money.
Five years later, John is in a stronger financial position and begins investing $200 per month into the same portfolio earning the same 5% annual return. Jane, meanwhile, lets her existing investments grow but doesn’t add another dollar.
After another five years pass, both Jane and John check their account balances.
Here’s the outcome.
Jane invested $200 per month for five years, a total of $12,000, then allowed that money to compound for another five years. Her account is now worth approximately $17,000.
John also invested a total of $12,000, but only over the most recent five years. His account is worth approximately $13,200.
Neither person made a wrong decision. The difference came down to one factor. Jane started earlier.
This is why all-or-nothing thinking can be so costly. Waiting for the perfect time often means giving up the most powerful advantage in investing, time itself. Small, imperfect steps taken early can outperform well-intentioned plans that are delayed.
Most financial mistakes aren’t caused by a lack of intelligence or effort. They’re caused by behavior. Waiting too long, second-guessing decisions, or feeling paralyzed by the fear of doing something imperfectly.
Our role as advisors is to help remove that pressure. We work with clients to create realistic plans, automate good decisions where possible, and provide perspective when life inevitably disrupts the plan. The goal isn’t to eliminate change. It’s to help you navigate it without losing momentum.
If your resolutions feel off track this year, that doesn’t mean they’ve failed. It may simply mean they need to be reframed. If you’re ready to take a thoughtful next step, please contact us.
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PAST PERFORMANCE IS NOT A GUARANTEE OF CURRENT OR FUTURE RESULTS. Examples of historical information included in this presentation do not, nor are they intended to, constitute a promise of similar future results. Specific client portfolio allocations, risks and returns can and may deviate from these examples depending on accounts and types of investments available through each account. Future market views by WJ Interests, LLC may vary significantly from the historical examples presented herein and no one receiving this summary should assume that WJ Interests, LLC will be able to replicate successful views in the future.
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