Why 73% of Money Goals Fail (And How to Be in the 27% That Succeed)
- liveyourmoneystyle
- Dec 29, 2025
- 7 min read
Quick question: Do you remember what money goals you set for 2025?
If you're drawing a blank, you're in good company. According to a recent survey, 52% of Americans didn't make a financial resolution in 2025. But here's what's even more revealing: of those who DID set financial goals, only 27% actually stuck to them. That means nearly three out of four people abandoned their financial resolutions at some point during the year.
Is this because people are lazy or undisciplined? Absolutely not. It's because most of us are setting goals the wrong way.
In this episode, co-hosts Meghan and Maddie are flipping the script on how you think about financial goals. Before you sit down on January 1st and write "save more money" on your resolution list, you need to hear this conversation about why most money goals fail, what actually creates progress, and how to set yourself up for a year where you actually feel good about your finances, not stressed, not guilty, just good.
What You'll Learn About Goals in This Episode
Section 1: Why Most New Year Money Goals Fail Maddie walks through the uncomfortable truth about financial resolutions.
The stats are striking:
23% of people quit their New Year's goals by the end of the first week of January
43% quit by the end of the month
We're not even making it to February
The Three Main Reasons Goals Fail:
Goals are based on pressure, not clarity - Research shows 62% of people feel pressured to make resolutions. "Should" is a terrible motivator that doesn't last.
Goals are set in isolation from real life - You decide to save $10,000 but don't account for rising rent, needing a new car, or planning a wedding. Goals that don't fit reality don't work.
People focus on outcomes instead of process - "I want $5,000 saved" is an outcome. But what's the actual process to get there?
Key Insight: Failing to stick with goals doesn't mean you're failing with money. It means the system wasn't built to support you.
Section 2: The Hidden Problem - Goals Without a Plan Meghan reveals why common financial goals are actually just wishes in disguise.
The most common financial goals sound like:
"Save more money"
"Invest more"
"Spend less"
The problem? They're not actionable. They're wishes dressed up as goals.
What does "save more" even mean? More than what? How much? By when? And most importantly, HOW?
The Fatal Flaw: Without a plan, goals rely entirely on motivation. And motivation is temporary - it's that burst of energy you feel on January 1st. By January 15th, when life gets busy and you're tired and stressed, that motivation is gone. If motivation is all holding your goal together, the goal goes with it.
Section 3: Goals vs. Systems - What Actually Creates Progress Maddie breaks down the game-changing concept from James Clear's Atomic Habits.
The Quote That Changes Everything: "You do not rise to the level of your goals. You fall to the level of your systems." - James Clear
What This Means:
Your goal is where you want to go
Your system is how you get there consistently
Goals point you in a direction; systems move you forward
Business Example: Companies don't hit revenue targets by hoping. They build systems: sales processes, marketing strategies, customer retention programs. They track progress and adjust when needed. The goal gives direction, but the system does the actual work.
Personal Finance Example:
Goal: Save $5,000 for an emergency fund this year
System: Automatically transfer $200 every paycheck into a high-yield savings account, track spending monthly, use a separate savings account to avoid temptation
Another James Clear Quote: "Goals are good for setting a direction, but systems are best for making progress."
[Reflection Point] Think about your past financial goals. Did you have a system supporting them, or were you just relying on willpower and motivation?
Section 4: Why Habits Matter More Than Big Financial Targets Meghan explains why small,
repeatable actions beat ambitious one-time efforts.
Tale of Two Savers:
Molly's Approach:
Saves $1,000 in January (bonus month!)
February gets expensive—saves nothing
March is the same
By April, she's given up
Lori's Approach:
Automatically transfers $100 every paycheck ($200/month)
Not exciting or Instagram-worthy
By year-end: $2,400 saved, plus interest, without thinking about it
Who made actual progress? Lori. Every time.
Why Habits Win: They reduce decision fatigue. You're not constantly asking "Should I save money this month? Can I afford it?" You've already made the decision. The system is running.
Financial Habits That Compound Over Time:
Automatic transfers to savings every payday
10-minute monthly money check-ins to review spending
Tracking spending to build awareness (not restriction)
Automatic 401(k) or IRA contributions
None feel dramatic. None transform finances overnight. But over time? They compound and create real, lasting change.
[Reflection Point] What's one small financial habit you could implement this month that would make your money life easier? Remember: focus on ONE to start.
Section 5: Build Habits First, Then Set the Goal Maddie flips the traditional approach on its head.
The Backward Strategy That Actually Works: Instead of setting a big goal first and trying to build habits to support it, do the opposite.
Build the habit first. Let consistency create confidence. THEN set bigger goals.
In Practice:
❌ Traditional: "I'm going to save $10,000 this year" → scramble to figure out how
✅ New Way: "I'm going to review my spending every month for 15 minutes"
What Happens: As the habit becomes automatic, you:
Notice patterns in your spending
See opportunities to save
Build confidence in managing money
Then You Can Set the Bigger Goal: "Now that I understand my spending patterns, I can realistically save $500/month, which gets me to $6,000 by year-end."
The Order That Works: Habit → Consistency → Confidence → Bigger Goals
This approach feels calmer and more sustainable than white-knuckling your way through an arbitrary goal.
Reminder: Join the FREE Reset Your Expenses Challenge to build these habits!
Section 6: Choose 1-3 Financial Priorities for 2026 Meghan explains why less is more when it comes to goal-setting.
The Magic Number: One to three priorities. That's it.
Why? Too many goals equals diluted progress. When you try to do everything, you end up doing nothing particularly well. Your energy scatters, focus blurs, and by March you're overwhelmed.
The CFO Approach: They don't optimize every line item at once. They identify the few key priorities that will move the needle this year and focus there. Everything else becomes supportive, not distracting.
Example Priority Combinations:
Option 1:
Build a $3,000 emergency fund
Contribute consistently to your 401k for full company match
Pay off highest-interest credit card
Option 2:
Simplify spending to understand money flow
Start investing for the first time
Save for a house down payment
The Strategy: Pick the few things that will genuinely improve your financial life. Write them down. Build systems around THOSE priorities. Everything else can wait or be a bonus.
[Reflection Point] What are the one to three financial priorities that would actually make a difference in your life this year?
Section 7: Make Your Goals Match Your Season of Life Maddie addresses the importance of context and timing.
The Truth: Your financial goals need to match your current season of life.
Different life stages require different priorities:
Early career: Paying off student loans, building career
Mid-career: Saving for a house, planning for kids, wedding savings
Later stages: Different priorities emerge
Important Reframe: Life circumstances change. Your goals should change with them.
People often feel "behind" because they're comparing themselves to arbitrary standards that don't fit their life at all.
Permission Granted: Needing to adjust your financial goals isn't failure. It's growth. It's wisdom. It's being honest about where you are and what you need.
Life seasons change. Goals should too.
Section 8: A Simple Pre-Goal Checklist Meghan provides four essential questions to ask before setting any 2026 financial goal.
Screenshot these questions or note them down:
Question 1: Do I know where my money is currently going? You can't set realistic goals without knowing your starting point. If you have no idea what you spent last month, start there. Build awareness first, then set goals.
Question 2: Do I have a system to support this goal? Remember: goals without systems fail. Before committing to a goal, figure out the system. What habit or process will actually get you there?
Question 3: Can this goal survive a busy month? Life will happen. You'll have busy, expensive, stressful months. Can your goal and system handle that? If not, adjust so it can.
Question 4: Does this align with my values and lifestyle? Does this goal fit your actual life, or are you setting it because you think you're supposed to?
If you answer yes to all four: You've got a solid goal. If you answer no to any: That's your signal to pause and rethink.
This checklist takes two minutes but can save you months of frustration and guilt.
[Reflection Point] If you have a goal in mind, run through these four questions now. What did you discover?
Section 9: Close - Permission, Not Pressure Maddie wraps with an empowering message about sustainable progress.
You Don't Need:
A full financial overhaul on January 1st
To completely reinvent your relationship with money overnight
Ten goals, a color-coded spreadsheet, and a perfect plan
What Creates Progress:
Clarity about where you are and where you want to go
Systems that support you getting there
Consistency in showing up, even when it's not exciting
The Empowering Truth: Only 27% of people stick to financial resolutions, but you don't have to be part of that statistic. Not because you'll work harder than everyone else, but because you'll work smarter.
Your Smarter Approach:
Build habits first, then set goals
Choose 1-3 priorities instead of trying to do everything
Give yourself permission to adjust when life changes (that's wisdom, not failure)
Your Action Step: Start small. Start thoughtfully. Pick ONE habit to build this month:
A 10-minute money check-in
Tracking your spending
Setting up automatic savings transfer
Just one. Build it. Make it consistent. Let it create confidence. Then add the next thing when ready.
That's How Real Progress Happens: Not through massive resolutions that fall apart by February, but through small, steady, sustainable habits that compound over time.
Final Question: How have you invested in yourself this week?
Key Takeaways
52% of Americans don't set financial resolutions, and only 27% of those who do stick with them
Most goals fail because they're based on pressure not clarity, set in isolation from real life, and focus on outcomes instead of process
You don't rise to the level of your goals—you fall to the level of your systems
Small, consistent habits compound faster than ambitious one-time efforts
Build the habit first, let consistency create confidence, then set bigger goals
Choose only 1-3 financial priorities for meaningful progress
Your goals should match your current season of life and evolve as you do
Run every goal through the 4-question checklist before committing
Free Resources Available
All linked in the show notes:
Reset Your Expenses Challenge - Join the challenge HERE!
Become the CFO of Your Life: 7 Principles for Financial Confidence
Connect & Share
If this episode resonated with you, send it to a friend who's thinking about their money goals for 2026.
You've got this. Start small, start thoughtfully, and build from there.
