Thursday, January 15, 2015

Jim Parker's Coffee Break - Keeping Resolutions

Making New Year’s resolutions, particularly when it comes to our finances, is easy. Keeping them is something else entirely.

This week’s Coffee Break provides links to helpful articles that show how you can increase your chances of success in keeping to a plan.

The Theory of Sunk Costs

Most people are reluctant to walk out on a bad movie. They may hate the film, but they subconsciously figure that having spent the money on the ticket, they need to sit it out. While this tendency to honour sunk costs can seem illogical, it can also help us keep New Year’s resolutions. More >

Beware the Loophole

So you’ve committed to the resolution and built a plan that makes it hard for you to change course. That’s good. But humans still have an amazing capacity to create loopholes. This article lists 10 common ones. Just being aware of the excuses may make it easier for you to resist them. More >

Why are Resolutions Hard to Follow?

When straying from a commitment, people will often say they lacked the willpower. The truth is the strength of our will is only part of the challenge. Often overlooked in keeping resolutions are the external factors that control our behaviour. This article highlights six steps to take back control. More >

Jim Parker

DFA Australia Limited