Often within the first few days of a new year individuals sit down and write out a list of resolutions. Sometimes the list is only one or two items, while others have a laundry list of the things they resolve to do differently. Some of the most common New Years resolutions are to live a healthier life, to start working out, and other actions that are meant to improve one’s life. This obviously cues a huge insurgence in gym memberships, meal or food delivery programs, and organizational tools. Another common resolution is for individuals to get a better handle on their financial life. This can mean something as simple as putting together a monthly budget and sticking to it, or it can be more comprehensive in nature such as hiring a financial advisor or developing a financial plan.

Most of these resolutions surround improving an individual’s financial wellness. In order to improve one’s financial wellness, it is important to define what financial wellness means to investors, and what makes an investor feel financially secure. Forty percent of investors feel that being financially stable means that they are comfortable supporting the lifestyle they want, according to recent research from Spectrem Group. Having enough money to put some away for the future is how 22 percent of investors define financial stability. Being completely debt free is the definition of financial stability for 13 percent of investors.

Resolving to improve financial wellness requires a focus on what makes investors feel financially secure. Having an emergency cash fund is the most important factor in making investors feel financially secure. This emergency cash fund is a different value for all investors, and how investors decide how much they should have in their emergency fund. Just over a third of investors feel that their emergency fund should have six months or more of their expenses. A quarter of investors feel that an adequate emergency cash fund would be six months or more of their income. Despite how an individual wants to calculate their emergency cash fund, it is of critical importance in making an investor feel financially secure. Having a financial plan is another component of feeling financially secure, making 78 percent of investors feel secure when they have a financial plan. Investors would be wise to consult with a financial professional if they would like to develop a financial plan as part of their new years resolution in order to seek greater financial stability.

An emergency cash fund and a financial plan may not give an individual a smaller waistline, or a more organized life, but it certainly can reduce stress, and financially provide for the pursuit of every other new year’s resolution an investor has. The new year offers opportunities to refocus on what is important to investors, and improvement or maintaining one’s financial life is something that is always beneficial.