The start of a new year is an excellent opportunity to review your financial situation and set goals to guide your spending and saving for the year ahead. And, in the financial sector at least, New Year’s resolutions do pay off – research suggests that those who set resolutions are more likely to improve their financial situation than those who don’t.

Whether you’re determined to pay off your credit card debt, plan for retirement, or save for a new home, the key to success is defining the goal and identifying those small, manageable steps that will take you towards that achievement. As a guide, we’ve outlined some common New Year’s resolutions that might motivate you to take action and make a difference in the year ahead.

Review your financial documentation

Committing to review your financial documents is a great way to set you up for the year ahead. These might include your credit report, bank statements, loan statements, and investment fees and charges. A lot of the time, people simply don’t take the time to read these documents, but remember, by keeping informed you are empowering yourself to make better financial decisions.

Reduce your spending

Promising yourself that you’ll ‘reduce general spending in 2016’ is likely not specific enough to succeed as a New Year’s resolution. Specificity is key. Resolving to reduce your spending by a manageable, fixed amount every month will make it easier to progress in saving money or paying off debts. It’s a good idea to go through your monthly budget and identify a few clear ways to cut a couple of hundred dollars from your monthly spending. As time goes on, you might find it easier to cut costs in more ways than one.

Save a specific amount

The same way promising to ‘cut costs’ is not definitive enough to last the year, it’s a good idea to commit to saving a specific amount in 2016, as opposed to just ‘saving more’. You might be saving to achieve a particular purchase or investment goal, such as a holiday or a share portfolio. And, by specifying a certain amount and then breaking it down into smaller chunks, you can plan to put aside achievable amounts every month that will go towards your bigger, yearly goal.

Cut on energy expenses

Energy expenses are a major cost for most households and, by reducing the amount of electricity and gas you consume, you can go a long way in working towards your new year financial goals. There are a number of pain-free ways to cut your energy costs, including adjusting your thermostat settings, using energy-efficient appliances, and switching to a more competitive supplier. Explore the different options available, and you could save hundreds of dollars throughout the course of the year.

Shop around and negotiate

Resolve to be a savvy shopper in 2016, and stop holding back in negotiating better terms. Whether it’s finding a more cost-effective savings account, health insurer or supermarket, a little bit of research can help you achieve significant savings in the year ahead. Recurring costs such as car and health insurance, energy, and groceries are an excellent place to start because they form a large part of your monthly spending.

Pay down your debt

Certain types of debt – particularly credit card debt – can easily eat up your cash flow and quickly get out of hand. As 2016 begins, it’s a good idea to review the debts you have, prioritise them in order of urgency, and create a plan for setting aside money and paying down your debt in the coming year.

Establish new behaviours and habits

Sometimes it’s easier to set resolutions in the form of behaviours and habits rather than goals – similar to addressing the cause, as opposed to the symptoms. For example, by cutting out your daily takeaway $4 coffee, this can lead to a saving of $1,448 a year. Simple behaviours such as bringing your lunch to work twice a week and eating dinner at home can have a similar impact. Identify your ‘costly’ habits and establish new behaviours to save money in the year ahead.

Grow your retirement pool

It’s never too early to start thinking about retirement, especially as your regular super willprobably not be enough to maintain your lifestyle in retirement. Resolve to pay more into your super this year, and seek advice from a financial advisor for the best way to do this. In doing so, you’re not only setting yourself up for a comfortable retirement – you could also reap some major tax benefits.

Find new investment possibilities

Resolve to grow your wealth by exploring different investing options and using your money wisely this year. Perhaps you’ve received a windfall in the form of a work bonus or raise and haven’t yet decided what to do with it, or maybe you’ve put aside a sum of money from last year’s efforts – if this is the case it might be a good idea to explore different options and grow your profits in 2016. Whether it’s a term deposit, shares, or something else, researching and comparing different products could make the coming year a prosperous one, and secure financial benefits for the future.

Monitor your progress

Sometimes it can be easy to start a budget and neglect it after a couple of months. This year, resolve to keep track of your finances by reviewing your incomings and outgoing on a regular basis. Set aside time every week to check your spending, and use apps to assist with the process. It can be surprising to discover just how much more aware of your finances you become by taking 15 minutes each week to check your budget. Doing so can help restore motivation to make smarter money decisions.

Reward yourself

Your financial resolutions don’t have to be all doom and gloom – you can also have fun in the process. For example, if you’ve achieved significant financial advancements in the past year, maybe it’s time to set a reward-based goal rather than a savings or cost-cutting goal. Having reviewed your finances, you might be in a position to spend some money on a well-earned holiday or enjoyment purchase. By the same token, it’s a good idea to set short-term financial goals and use a rewards system to keep you motivated and on the right money saving trajectory during 2016.

Taking action

Once you’ve set your resolutions, remember to write them down and review them from time to time. Set out a brief action plan of the things you need to do to achieve each resolution. It’s also a good idea to order your resolutions according to their priority and decide which ones you will work towards first.