{"id":373084,"date":"2025-12-26T13:50:17","date_gmt":"2025-12-26T13:50:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/373084\/"},"modified":"2025-12-26T13:50:17","modified_gmt":"2025-12-26T13:50:17","slug":"here-are-5-tips-to-stick-to-your-new-years-financial-resolutions-in-2026-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/373084\/","title":{"rendered":"Here are 5 tips to stick to your New Year\u2019s financial resolutions in 2026 – National"},"content":{"rendered":"

In the age of social media, you may be fooled into thinking that the curated version of people\u2019s lives that you see in your feed is reality.<\/p>\n

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But Vancouver-based money coach Parween Mander knows that digital highlight reels too often paint a picture of people\u2019s finances that doesn\u2019t quite line up with their reality.<\/p>\n

\u201cWe don\u2019t get to see their lows,\u201d she says. \u201cIt\u2019s hard not to compare your life to milestones that others hit. And that\u2019s when shame starts to seep in.\u201d<\/p>\n

Mander is an accredited financial counsellor and a proponent of New Year\u2019s resolutions that focus on mastering your money.<\/p>\n

She and other personal finance experts agree that the way you approach, structure and keep tabs on your financial goals dictates how successful you are in maintaining them throughout the year.<\/p>\n

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Here are five tactics that could help you.<\/p>\n

Before crafting a New Year\u2019s resolution, Mander suggests a short, comprehensive audit of the year that just passed: familiarize yourself with your income, savings, investments, debt and major expenditures.<\/p>\n

That means glancing at every bank and investment account, every major bill and obligation.<\/p>\n

\u201cIt\u2019s important to reflect on what went well or didn\u2019t go well with finances in the previous year to create a roadmap for improvement,\u201d she says.<\/p>\n

Once you\u2019ve identified your goals, you can decide on a strategy.<\/p>\n

Mander\u2019s approach to debt deviates from the traditional approach of \u201caggressively tackling the debt very quickly\u201d because she prioritizes savings and creating a buffer.<\/p>\n

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It\u2019s a sign of the times.<\/p>\n

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The Financial Consumer Agency of Canada finds that more than half of Canadians (54 per cent) are struggling to pay bills.<\/a><\/p>\n

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With that many households living precariously from paycheque to paycheque, Mander worries about emergencies cropping up from a vehicle or furnace breakdown, family obligation or other unexpected large expenses.<\/p>\n

\u201cFor my clients, building up that buffer of savings first as an emergency fund is key,\u201d she says.<\/p>\n

Mander recommends having at least three months\u2019 worth of money to cover expenses and obligations, but six months may be appropriate if you\u2019re self-employed or in an industry that\u2019s susceptible to layoffs.<\/p>\n

This may be a lofty goal and she recommends not becoming discouraged if it takes a year or more to build up enough savings for a proverbial rainy day.<\/p>\n

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As you work on your savings goals, you can also tackle your debt.<\/p>\n

The rising cost of living has taken a toll on Canadian households, with nearly four in 10 Canadians taking on new debt in 2024, according to a recent survey by the Office of the Superintendent of Bankruptcy and the Canadian Association of Insolvency and Restructuring Professionals.<\/p>\n

There are, generally, two paths when it comes to reducing or, ultimately, eliminating your debt, according to Mander.<\/p>\n

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One is to prioritize paying off your highest-interest debt.<\/p>\n

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The other is the so-called \u201csnowball effect,\u201d where you completely pay off your smallest debt for a \u201cquick motivational win\u201d before tackling your other debt.<\/p>\n

If you have multiple \u201cdebt buckets,\u201d Mander recommends starting with the snowball approach to eliminate your smallest debt (or debts) before moving to prioritize your highest-interest debt.<\/p>\n

\u201cDon\u2019t be afraid to experiment, but I think a good place to start would be with that lowest-balance debt to begin with,\u201d she says.<\/p>\n

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Personal finance expert Melissa Leong says she starts the new year strong, but falters as the weeks pass.<\/p>\n

\u201cAll of my resolutions lose steam by February,\u201d she says. \u201cBecause when you set financial rules for yourself, it can be rigid and demotivating.\u201d<\/p>\n

Leong is the author of Happy Go Money: Spend Smart, Save Right and Enjoy Life.\u00a0Her unconventional approach to resolutions is to scrap them and craft \u201cmoney practices\u201d instead.<\/p>\n

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That\u2019s because money practices focus on actions, which can be implemented immediately, rather than end goals.<\/p>\n

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Leong\u2019s go-to is automation, whether it\u2019s setting up automatic savings or bill payments.<\/p>\n

That way, you\u2019re not relying on willpower, which ebbs and flows.<\/p>\n

She\u2019s a big believer in practices and values over rules.<\/p>\n

\u201cInstead of saying, \u2018I resolve to be more careful with my impulse shopping,\u2019 write a value or an identity that you want to embody,\u201d Leong says. \u201cLike \u2018I am a conscious spender,\u2019 and then write a practice that supports that.\u201d<\/p>\n

For example, \u201ca conscious spender would press pause on a non-essential unplanned purchase over $100 for 24 hours.\u201d<\/p>\n

\t\t\t\tProgress, accountability and grace\n\t\t\t\t\t\t<\/p>\n

Leong\u2019s approach touts \u201cprogress versus perfection\u201d by identifying financial habits you want to improve and tracking your dedication.<\/p>\n

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\u201cPick one tiny financial habit and track the streak, not necessarily the dollars, but how consistent you are,\u201d she says.<\/p>\n

Leong recommends creating something to keep you accountable.<\/p>\n

For her, it\u2019s a WhatsApp group with trusted friends.<\/p>\n

It keeps her on track but she\u2019s also designed it to incorporate room for error.<\/p>\n

\u201cGive yourself grace,\u201d she says. \u201cIt\u2019s OK for me to miss up to three times, maximum. We\u2019re not trying to win the Super Bowl, we\u2019re trying to practise every week.\u201d<\/p>\n

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Another tip to keep her on track is renaming accounts to reflect specific savings goals: vacation, daughter\u2019s wedding, emergency or even \u201cfuture me.\u201d<\/p>\n

\u201cStudies show that money with a name is harder to steal from yourself,\u201d Leong says.<\/p>\n

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Regardless of your personal money goals, the endgame is \u201cfinancial empowerment,\u201d according to Leong.<\/p>\n

And building that knowledge and skill set takes time.<\/p>\n

\u201cIt\u2019s not a light switch you flip on Jan. 1. It\u2019s more like learning a language, building muscle. So you don\u2019t just wake up fluent, or fit, you go on a journey,\u201d she says.<\/p>\n

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