Happy New Year’s Eve!
For 4,000 years, humans have tried to fix themselves in January. It started with the ancient Babylonians. During their harvest festival, they promised the gods they would pay off debts and return borrowed farm tools.
Today, we promise to read more. We promise to get admitted to Hogwarts (this year is the year). And we promise to fix our money.
But here is the hard truth: 91% of these resolutions will fail.
Most people quit by the second week of January. They call it “Quitter’s Day.”
Why do we keep failing? It isn't because we are weak. It is because of how our brains are wired.
The Trap of the "Arrival Fallacy"
We often think, "Once I save $100,000, I will be happy."
Psychologist Tal Ben-Shahar calls this the Arrival Fallacy. It is a trick your brain plays on you. The truth is, reaching a goal doesn't fix your life. The happiness wears off fast, and you are left with an empty feeling.
Even worse, unfinished goals create anxiety. This is called the Zeigarnik Effect. It means your brain creates an "open loop" of stress until a task is done. If your goal takes a year to finish, that is a whole year of unnecessary stress.
Your Brain Batteries
To fix this, we have to look at biology.
When you use willpower to save money, you use a part of the brain called the Prefrontal Cortex. It is like a battery. It drains quickly when you are tired or stressed. That is why you break your diet at night.
But habits live in a different part of the brain called the Basal Ganglia. This part is automatic. It uses almost no energy.
The secret to wealth isn't more willpower. It is moving your money habits from the tired part of your brain to the automatic part.
How to Build Your Financial System
Author James Clear found that in the Olympics, winners and losers have the same goals. They both want the gold medal. The goal doesn't make you win. The system does.
So, how do you build a system for 2026?
Automate It: Don't rely on memory. Set up automatic transfers. This bypasses your tired Prefrontal Cortex completely.
Change Your Environment: If you want to spend less, delete the shopping apps. Make friction your friend.
Gamify It: Big goals are too far away. Set "micro-goals," like checking your spending every Friday. This gives your brain a small hit of dopamine—the chemical that keeps you motivated.
The Bottom Line
Financial success isn't about being perfect for one week in January. It is about building a machine that works for the rest of the year.
This year, don't rely on grit. Rely on a system.
Happy New Year,
Matt
PS - if you want to make all your money goals a reality, try Fulfilled for free.
