Why New Year’s resolutions fail, and how to set goals that stick

Every January, millions of people around the world start the year with good intentions.
Eat better. Get fitter. Save more. Find balance. Be happier.

And yet, by February, long after the fireworks and champagne corks have stopped popping, many New Year’s resolutions have quietly disappeared.

Dan Diamond reported in a Forbes article that research from the University of Scranton suggests only around 8 to 10 per cent of people achieve their New Year’s resolutions.¹ The issue is not motivation or discipline, but how goals are designed to support real behaviour change.

Through my strategic coaching with professionals, leaders and business owners, I consistently see the same pattern play out each year. People start the year with strong intentions, but without clarity, structure and accountability, those intentions are quickly overtaken by day-to-day demands. The difference between goals that fade and goals that stick is rarely motivation. It is how the goal is defined, supported and translated into small, consistent actions over time, supported by an accountability partner, that most strongly influences success.

Why most New Year’s resolutions fail

One of the primary reasons resolutions fail is that they are too vague.

“I want to be healthier.”
“I want to save more money.”
“I want better work, life balance.”

These intentions are positive, but without clarity, measurability or a plan, they are difficult to sustain once day to day demands take over.

Research published in the Journal of Clinical Psychology found that while many people set New Year’s resolutions, fewer than half were still actively working towards them after six months.² Goals that lack structure, feedback or accountability are far less likely to be achieved.

Another common mistake is relying on motivation alone. Motivation is useful at the beginning, but it fluctuates. Sustainable change requires clear goals, systems and habits, not willpower alone.

SMART Goals. Turning intentions into action

This is where SMART goals make a meaningful difference. SMART goals help transform broad intentions into clear, actionable plans.

• Specific: Clearly define what you want to achieve.
• Measurable: Identify how progress will be tracked and how success will be measured.
• Achievable: Ensure the goal is realistic given your current commitments, resources, and capacity.
• Relevant: Clarify why the goal matters now and how it supports what is important to you. Link it back to your values and specific areas of your life.
• Time bound: Set a clear timeframe and milestones to maintain focus and momentum.

Decades of research show that clearly defined goals significantly improve performance and follow through. Leading research by Locke and Latham demonstrates that specific and challenging goals lead to higher performance than vague or general goals, particularly when progress can be tracked.³

For example: “I want to save more money.”  Becomes: “I will save $5,000 this year by setting up an automatic $100 weekly transfer into my savings account starting 1 February for 50 weeks.”

The second goal provides clarity, direction, and a clear definition of success.

Writing goals down and accountability

Another powerful, and often overlooked, factor in goal achievement is writing goals down and introducing accountability.

Research conducted by Dr Gail Matthews, Professor of Psychology at Dominican University of California, found that individuals who write their goals down are approximately 33 per cent more successful than those who do not. The research also showed that the highest levels of goal attainment, around 76 per cent, were achieved by people who wrote their goals down, shared them with another person, and provided weekly progress reports to an accountability partner.⁴

Writing goals down clarifies intent. Accountability creates follow through.

The 1 Per Cent Better Approach. Small acts make a big impact

One of the most effective ways to sustain change is to stop aiming for dramatic overnight transformation and instead focus on small, consistent improvements.

This is often referred to as the 1 per cent better approach, popularised through high performance environments such as British Cycling, where marginal gains delivered sustained improvement over time. Improving by just 1 per cent each day may feel insignificant, but the cumulative impact is powerful. Mathematically, a 1 per cent improvement compounded daily results in an outcome approximately 37 times better over a year (1.01³⁶⁵ ≈ 37.8).

Behavioural research supports this compounding effect. Studies published in the European Journal of Social Psychology found that the average time for a new behaviour to become automatic is 66 days, reinforcing the importance of consistency over intensity.⁵ Small actions, done regularly, outperform big intentions done occasionally.

Making this year different. Increase your chances of success

So, this year, instead of setting a New Year’s resolution that quietly fades, take a more intentional approach. Grab a notepad and your accountability buddy and use the SMART Goal Planner as a guide, to focus on the five essential ingredients that significantly increase your chances of success:

• Define a clear, SMART goal that removes ambiguity and sets a clear direction.
• Commit it to paper, turning intention into a concrete plan.
• Share the goal with someone you trust to introduce accountability.
• Break the goal into small, consistent actions that can be sustained over time.
• Review progress regularly, ideally weekly, with your accountability partner to maintain momentum and adjust as needed.

Progress does not happen by default. It happens by design.

And remember, improving by just one per cent each day compounds to around 37 times better over a year. Small, consistent actions, taken daily, create extraordinary results over time.

So, what would you choose to be 37 times better at this time next year?

Get in touch with Cate at Inspiration Cafe or Find a Planner near you!

References

1. Diamond, D. (2013). Just 8% of People Achieve Their New Year’s Resolutions. Forbes.
2. Norcross, J. C., Mrykalo, M. S., & Blagys, M. D. (2002). Self Change and New Year’s Resolutions. Journal of Clinical Psychology, 58(4), 397 to 405.
3. Locke, E. A., & Latham, G. P. (2002). Building a Practically Useful Theory of Goal Setting and Task Motivation. American Psychologist, 57(9), 705 to 717.
4. Matthews, G. (2015). Goal Achievement and Accountability. Dominican University of California.
5. Lally, P., van Jaarsveld, C. H. M., Potts, H. W. W., & Wardle, J. (2010). How Are Habits Formed, Modelling Habit Formation in the Real World. European Journal of Social Psychology, 40(6), 998 to 1009.

The Money & Life website is operated by the Financial Advice Association Australia (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.