New Year’s Day. That magical date when the calendar resets, and so do all your lofty resolutions. It feels like the perfect time to fix everything: your diet, your exercise routine, and, yes, your finances. But here’s the thing: using January 1 as your marker to turn things around can do more harm than good, especially regarding your money.

Instead of waiting for a specific date, let’s talk about why you should start whenever you feel ready—and how to approach your financial goals thoughtfully, especially if your plans involve investing limited funds.

The Problem with New Year’s Resolutions

Let’s be honest: New Year’s resolutions have a terrible track record. Studies show that about 80% of resolutions fail by mid-February. Why? Because they are often driven by the hype of a new year rather than a clear, actionable plan.

For finances, this can be particularly dangerous. If you dive in without preparation, you risk making rushed decisions that don’t align with your long-term goals. Maybe you put all your extra cash into a trendy stock or funnel money into a savings account without thinking about whether it’s the best use of your funds. Either way, you are setting yourself up for disappointment when those impulsive moves don’t pay off.

Why You Do Not Need a Calendar to Start

Here’s the good news: you do not need a new year, month, or even week to start fixing your finances. The best time to start is when the moment hits you—whether it’s April 5, October 15, or any random Tuesday. What matters is your readiness to make a change, not the date on the calendar.

Starting when you feel motivated means you are more likely to stick with it. The key is to channel that motivation into action while it’s fresh. Waiting for some arbitrary future date can sap your enthusiasm and leave you stuck in the same financial rut.

Step 1: Take a Moment to Make a Plan

Before you do anything with your money, take a moment to breathe. It is tempting to jump right in, especially if you feel inspired, but a little planning goes a long way. Here is a simple process to get started:

1. Assess Your Current Situation: Take stock of your income, expenses, debts, and savings. Knowing where you stand is the first step to knowing where to go.
2. Set Clear Goals: What do you want to achieve? Pay off debt? Build an emergency fund? Start investing? Be specific about your goals and give yourself a realistic timeline.
3. Prioritize: If you have limited funds, decide what matters most. For example, building an emergency fund should come before investing because it gives you a safety net for unexpected expenses.
4. Make a Budget: Break your goal into manageable steps and incorporate them into your monthly budget. This will make it easier to track your progress and adjust as needed.

Step 2: Understand the Risks Before You Invest

If your financial plan includes investing, take extra care to educate yourself. Investing is a fantastic way to grow your wealth, but it’s not without risks—especially if you are working with limited funds. Here are a few tips to keep in mind:

• Start Small: You do no’t need much money to start investing. Apps like Robinhood or Vanguard let you buy fractional shares, so you can invest as little as $5 at a time.
• Diversify: Do not put all your money into one stock or cryptocurrency. Spreading your investments across different assets reduces your overall risk.
• Think Long-Term: Investing is not a get-rich-quick scheme. The stock market grows over time, but it’s normal for values to dip in the short term. Be patient and avoid making emotional decisions.
• Educate Yourself: Read up on basic investment strategies and understand the assets you are buying. The more you know, the better decisions you will make.

Step 3: Be Ready to Restart

Say you start strong, and then, well, life happens. An unexpected expense throws you off track, or you lose motivation and stop sticking to your plan. It’s okay. The important thing is to restart as soon as you are able.

Restarting does not mean you have failed. It means you are human. What matters is that you are willing to pick yourself back up and keep going. No matter how small, every step forward gets you closer to your goals.

The Opportunity Cost of Waiting

One of the biggest dangers of waiting to start is the opportunity cost—the value of what you lose by delaying action. This is especially true for investing.

For example, if you invest $100 a month starting at age 25 and earn an average annual return of 7%, you could have over $120,000 by age 65. If you wait just 10 years to start, your total drops to about $57,000. That is the power of compound interest—and why starting as soon as possible is so important.

Using New Year’s Day as your financial reset button sounds nice in theory, but it is not the most effective approach. The best time to start is whenever the motivation hits you. Take a moment to make a plan, understand the risks of investing, and do not be afraid to restart if you stumble along the way.

Your financial journey does not need a perfect starting point. It just needs a starting point. So, why not make today the day you take that first step?