This is the year to reach your savings goals

Behavioral economists provide tips on how to improve the odds of reaching your goals. Now that the initial New Year's Resolutions  have faded, it's time to get serious about reaching your financial (and other) goals with the help from research. About half of people who make these resolutions fail to achieve their goals. Now there is research-based help.
Source: "This may be the year you reach your savings goals" by Anne Tergesen, The Wall Street Journal, 12/28-29/19.

1. Set financial goals in January or on your birthday. Research shows these are good times to initiate change. Both wipe the slate clean and mark the start of a new year.

2. Set specific, realistic goals. Example: "I will increase my 401(k) contributions by 2%/year for the next 5 years."

3. Make a detailed written plan. Break your goal into small steps and get started.

4. Stress test your plan. "Behavioral economists recommend an exercise called mental accounting, in which people think about a desired outcome and why it matters." Ex. I am saving 15%/year so I can retire by age 67.  Identify obstacles (buying frequently on Amazon) and brainstorm solutions (stop Amazon Prime subscription and disable one-click shopping).

5. Use behavioral strategies. Automate your savings!

• Make "if-then" plans.
• Reward your successes. Treat yourself when you've stuck to your plan for 6 months.
• Use temptation bundling. Listen to an audio book while exercising; enjoy your favorite beverage while Reviewing monthly spending. 
• Use behavior therapy. "Identify triggers of bad behavior and substitute alternative rewards." 
• Use mental accounting. Save for separate goals in individual accounts. Have a visual reminder of each goal. 
• Set occasional high impact goals. Set one month as a save as much as possible/spend as little as possible. This is similar to the alcohol-free January.