New year, new financial goals? Not so fast.
While 49% of people aim to save money every new year, 80% of resolutions fail within weeks. But don’t let that discourage you.
Building consistent money habits can help you grow your wealth by thousands — even millions — of pesos this year.
Contents
- Track your expenses diligently
- Automate savings and investments
- Prioritize debt repayment and set a realistic timeline
- Invest in upskilling yourself for better pay
- Master the 30-day money rule to avoid overspending
- Surround yourself with like-minded individuals for support and accountability
- Keep your financial plan fresh
1. Track your expenses diligently
Start with the basics. Write down everything you spend. Use free apps or go old-school with pen and paper. Got a family? Put a whiteboard on the fridge and make expense tracking a team sport.
Here’s why it matters. Studies show people who track spending stick to budgets better. You can easily track what comes in and out. As Robert Kiyosaki puts it: “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”
Give it a month. Soon, tracking becomes second nature—and those numbers might surprise you.
2. Automate savings and investments
Stop manually moving money. Set up auto-transfers on payday before “add to cart” temptations hit. Your future self will thank you when that Shopee sale rolls around.
Why it works? Science says less thinking = better money moves. You remove the cognitive load right off the bat. When you automate this, you bypass the mental load of deciding to save. Plus, money you don’t see is money you won’t spend.
So, how do you do this? Schedule transfers for the 15th and 30th. Let technology guard your wallet.
3. Prioritize debt repayment and set a realistic timeline
Prioritize debt repayment and set time-bound goals. Be ruthless about this habit. Here’s why.
Those personal loans? They’re silent money killers. Each peso of interest rate is a peso you could’ve saved. No wonder your income vanishes after monthly payments.
Here’s Dave Ramsey’s fix: The snowball method. Start small. Pick your tiniest credit card debt, crush it, and then snowball to the next. Meanwhile, keep minimum payments flowing on others.
Action plan to achieve financial goals:
- List all credit card balance
- Track interest rates
- Set a realistic financial plan
- Adjust finances (yes, it’ll hurt)
- Consider household income boosters
Make this a reality check. Stop the bleeding now. Your emergency fund depends on it.
4. Invest in upskilling yourself for better pay
Can’t read 500 pages like Warren Buffett? No problem. Modern learning is smarter these days. Listen to audiobooks during commutes, grab an eBook subscription, or take free online courses instead of doom-scrolling.
Here’s the truth: 87% of online learners reported career boosts, from promotions to bigger paychecks. So, if you want any of these, make sure you also do your part.
Ready to invest in yourself? Start with personal finance books, then level up to a money coach or financial advisor when you can afford one. Your smartphone can be your classroom—make it count.
5. Master the 30-day money rule to avoid overspending
Want to create better spending habits? When that impulse spending hits, pause for 30 days. Here’s why: Most “urgent” purchases aren’t urgent.
During your waiting period, ask yourself:
- Is this a short term want or a real need?
- Can my mortgage or other bills wait?
- Could I find better deals for my future savings?
- Will this credit card bill keep me up at night?
- How can I protect my savings account and emergency fund?
That stay motivated feeling from shopping? It’s temporary. But a healthy financial situation lasts. Your retirement savings will thank you for every impulse purchase you skip.
If you can’t pay in cash from your regular basis income, it’s probably not worth tapping your high-yield savings account or investment account. Let your financial tools work for you, not against you.
Remember, a good financial journey starts with smart choices. Your retirement fund grows one skipped splurge at a time.
6. Surround yourself with like-minded individuals for support and accountability
Need a push to achieve your money goals? Find your tribe. Money moves are better with backup.
Digital spaces to level up:
- Reddit’s PH Investing community (real talk about investment account strategies)
- PSE Daily (stock market pulse)
- Money-saving groups (daily financial tools and tips)
Here’s the deal: A good financial journey starts with good company. Share wins, ask questions, but filter advice—what works for their life might not fit your path.
Pick forums focused on your current goal, whether starting an emergency fund or planning for retirement. Let the collective wisdom inspire your financial future.
Remember: You’re the average of the five people you spend the most time with. Choose your money mentors wisely.
7. Keep your financial plan fresh
Think of your money like your body—both need regular check-ups to thrive. Just as you track steps, count calories, and hit the gym, your financial health needs its own fitness routine. So, make sure you also do these regular financial check ups.
Quarterly:
- Track your savings goals progress
- Review monthly payments
- Adjust your household income allocation
Yearly:
- Deep dive into your retirement account
- Update long term goals
- Review investment account performance
Life Changes? Reset your plan when:
- Landing that new job
- Buying a new car
- Updating your mortgage
Create calendar alerts for these money dates. Your financial future needs regular maintenance to stay healthy.
Always remember, what worked last year might not work now. Keep that financial success plan flexible—like your favorite workout routine but for your wallet.
People Also Ask About Financial Habits
1. How do I start building healthy financial habits?
Building healthy financial habits starts with small, consistent steps. First, track where your money goes for 30 days – every peso counts. Then, automate your finances: set up transfers for savings, bills, and investments. The key? Start with one good money habit at a time. Whether it’s brown-bagging lunch or canceling unused subscriptions, these small wins compound into major financial victories.
2. What’s the ideal amount for an emergency fund?
Your emergency fund should cover 3-6 months of essential expenses. But here’s the real talk: start with ₱5,000, then build it up. This financial safety net prevents you from falling into credit card debt when life throws curveballs. Keep it in a high-yield savings account – your money should work while it waits.
3. How can I break bad money habits?
Breaking bad money habits is like breaking up – it’s tough but worth it. Start by identifying your spending triggers. Shopping when stressed? Mindless “add to cart” clicks? These drain your credit card balance fast. Replace these with good financial habits: use the 30-day rule, track expenses, or find free entertainment. Remember, your financial future depends on today’s choices.
4. Which financial decisions should I prioritize?
Think of financial decisions like a ladder. Start at the bottom: emergency fund first, then tackle high-interest credit card debt. Next, focus on putting money into retirement and investment accounts. The key to achieve financial goals? Prioritize based on your personal finance situation. High-interest debt is usually the emergency you need to handle first.
5. Is a high-yield savings account worth it?
Short answer? Absolutely. Here’s why: while regular savings accounts offer minimal interest, high-yield accounts make your money work harder. Sure, you won’t get rich overnight, but even a 4% annual return beats the typical 0.1%. Perfect for emergency funds or short-term savings goals. Just watch out for minimum balance requirements and fees.
Final thoughts
As we wrap up this article, it’s clear that personal finance is not just about setting New Year’s resolutions. It’s about forming healthy habits that will have a long-lasting impact on your financial well-being.
From diligently tracking your expenses and automating your savings to prioritizing debt repayment and investing in yourself, these are all habits you should adopt now.
Remember, it’s never too late to start practicing these habits and taking control of your finances.
Which habit are you most excited to start implementing?
We can’t wait to see the positive changes it brings to your life. If you find this helpful, share this article with a friend, and together you can do better.