The New Year brings the traditional flood of resolutions, but let's be honest: "Save more money" is often as vague and short-lived as "Lose weight."

This year, ditch the sweeping goals and embrace the power of achievable, sustainable financial habits. Real progress isn't made by a single grand gesture, but by small, consistent actions. Here is your five-step guide to setting—and actually sticking to—New Year's financial resolutions.

 

1. Ditch the vague goal, embrace the SMART metric

Instead of saying, "I will save more money," make it specific and measurable. The magic lies in the details, specifically in the S.M.A.R.T. framework:

1. • Specific: What exactly do you want to accomplish?
   • Measurable: How will you track your progress? (Use numbers!)
   • Achievable: Is this goal realistic given your current income?
   • Relevant: Does this goal align with your long-term financial freedom?
   • Time-bound: When do you plan to achieve this goal?

To give your savings goal structure, we recommend anchoring it to the 50/30/20 Rule. This popular budgeting method allocates 20% of your after-tax income to savings and debt repayment.

Vague Resolution	SMART Resolution	Why it Works
Save money.	Save ₱5,000 per month by automating a transfer to a high-yield savings account on the 5th of every month.	It specifies the how, the when, and the amount. This makes it a task, not a wish.
Pay off debt.	Pay ₱500 extra on my highest-interest credit card every payday to clear the balance by October.	It focuses on consistent action against a prioritized target.

 

2. Automate your success (before you spend it)

The single biggest reason financial resolutions fail is relying on willpower. By the middle of February, that willpower is gone. The solution? Remove the choice entirely through automation.  Setting up these automatic transfers is easy and usually takes just a few clicks within your mobile banking app like My CBC.

• Savings first: Set up an automatic transfer from your checking account to your investment account or high-yield savings account the day your paycheck lands. This ensures you pay yourself first.
• Bill payments: Automate all monthly recurring bills (utilities, insurance, subscriptions) to avoid late fees, which are budget-killers.
• Debt attack: Schedule your minimum debt payment plus a small, consistent extra amount to chip away at the principal automatically.

 

3. Implement the "Three-Day Rule" for big purchases

The New Year often inspires us to buy new gadgets or large items for self-improvement. To combat impulsive spending that derails budgets, implement a mandatory cooling-off period.

Whenever you want to buy a non-essential item over a certain price threshold (e.g., ₱5,000): wait three full days.

During the wait, ask yourself:

1. Can I pay for this right now without touching my emergency fund?
2. Will this purchase genuinely improve my life or just give me a temporary high?
3. Where does the money come from in my budget?

 

More often than not, the urge to buy will fade, and you’ve successfully protected your savings goal.

 

4. Conduct a "Subscription audit"

We accumulate subscriptions like dust bunnies. Before setting ambitious saving targets, find the money you are already wasting.

Dedicate one afternoon to reviewing your bank and credit card statements from the last three months. Look for:

• Gym memberships: Are you still using them?
• Streaming services: Are you paying for three different services when you only watch one?
• Trial conversions: Did a free trial automatically turn into a paid service you forgot about?

Cancel or downgrade any recurring charge you haven't used in 30 days. That ₱500 a month saved is an easy ₱6,000 windfall by the end of the year.

 

5. Get an accountability partner (or app)

Financial progress is easier when it’s tracked. This year, make your financial health social (in a private way).

• Find a buddy: Talk to a trusted friend or partner about your SMART goal (e.g., "I am saving ₱5,000 this month toward my travel fund"). Checking in helps maintain focus.
• Utilize banking tools: Use the budgeting or tracking features in your banking app. Seeing your progress visually—watching that savings account grow or that debt balance shrink—is the most powerful motivator there is.

 

This year, success isn't about reaching an arbitrary, massive number. It’s about building habits that last. By setting specific, automated, and sustainable financial resolutions, you add on the pounds, er, pesos to fatten your bank account and keep it suitably plump all the way to December 31st and beyond.