One Money Habit That Beats A Dozen New Year’s Financial Resolutions
Happy New Year! By this time, many have already made New Year’s resolutions that include money matters:
Save more.
Spend less.
Invest better.
Stick to a budget—this time for real!
And so many more.
The first few weeks will be good. They feel motivated, attentive, and hopeful. Then life happens.
A school expense comes up. Work gets busier. A family emergency happens. An important celebration, an unexpected repair, and so many more. The neat financial plan begins to fray. By February or March, many may just quietly conclude that, “Ahh…ganon talaga e.” Then they slowly lose hope that things will ever feel under control.
What often goes wrong isn’t discipline. It’s design.
At different stages of life, the pattern may look different but the outcome is the same.
Young professionals start the year determined to save, only to find expenses such as rent, transportation, and social obligations consuming more than expected.
Growing families resolve to budget carefully complete with excel files or their chosen app, then discover that childcare, school needs, and medical expenses refuse to stay within tidy categories.
Midlife earners plan to invest aggressively for retirement, but competing priorities such as supporting aging parents, helping children get started, and preserving some quality of life pull their attention and resources to many directions.
In each case, they start strong, feel briefly in control, then slowly disengage. Not because they don’t care anymore but because managing money line by line, month after month, is not everyone’s cup of tea. It requires more energy than what most finance contents you see online show.
The one habit that changes everything:
If I were to recommend just one money habit—the one that can outperform a dozen New Year’s financial resolutions—it would be this:
Automate the first basic law of money!
Yes, automate “Pay yourself first!”
This single money habit automatically sets aside money for saving and investing the moment the income comes in. No repeated decisions. No reliance on motivation. No constant monitoring. No summoning of discipline and will power!
This simple design protects the decision of your Makatwirang Mak to save and invest at the start of the year from the possible outbursts and justifications of your Emotional Emong when life happens.
Why automation beats line-by-line budgeting:
I also went through the stage of line-by-line budgeting as a young student, professional, wife, and mom. It’s very helpful to start with this as you will know exactly where the money goes. You’d be able to figure out whether you are spending for the things that you value in life or not. You can keep doing this as long as you need to and as long as it does not interfere with your joy and the other important things that you need to spend time on.
I have a confession to make. Years ago, I stopped doing my super detailed monthly expense sheet that included even the modes of payment (cash, check, credit card, etc.). I stopped because the time I was spending to complete it every month was no longer commensurate to the utility or even the satisfaction (yes, it brought me satisfaction back in the day) I was deriving from it. It was time to say goodbye to it, and still feel safe about our spending because of this one money design: Automatic Saving and Investing.
Traditional budgeting assumes that we always have the time, energy, and emotional bandwidth to make perfect decisions.
Automation accepts the reality that we don’t.
When saving happens first and by default, these are the positive consequences:
- Progress continues even during busy or difficult times.
- Financial stress is reduced because saving and investing regularly are no longer optional.
- Lifestyle adjusts naturally to what remains after paying yourself first.
- You can spend the rest of your money guiltlessly.
- You have the peace of mind that you are not forgetting your future self.
Many people are surprised by how quickly they adapt. What once felt “impossible to save” becomes invisible—once it’s automated. This doesn’t mean awareness no longer matters. It only means that the most important decision and effort have already been made and will continue to be implemented painlessly.
Designing a system that works for you:
Creating this habit does not have to be complicated. Just follow these steps:
- Choose the purpose. Is it for your emergency fund, travel, education, car, wedding, or long-term investment like retirement?
- Start with a realistic amount. Even a small percentage works. Consistency matters more than the size, and with automation, consistency is easy-peasy.
- Automate it. This is best done with your payroll account. Schedule the transfer to happen the same day income is received.
- Increase gradually. As income grows, raise the amount you set aside, not just the nominal amount but also the percentage of your saving and investing in order to avoid lifestyle creep.
- Check periodically to enjoy the fruits of your design.
This one money habit is not about restriction. It’s about protection. Again, protection of your Makatwirang Mak’s noble intention to save and invest from your Emotional Emong’s unwanted reactions to life circumstances.
A gentler way forward:
This is what I learned over the years of studying and teaching about money and family:
Our financial condition improves faster when it’s designed to work quietly in the background—without drama, guilt, or constant attention.
You don’t need a dozen money resolutions this year. You only need one well-designed High FQ Habit: Automate your saving and investing!
Set it once. Let it run. Allow yourself to be hopeful. And do your thing to fulfill your other goals and dreams in life. You’ll soon find out that things will fall into place—not because you’re trying harder, but because your High FQ System is finally working well for you.
Happy New Year! Cheers to High FQ!
ANNOUNCEMENTS:
1. Want a better financial life, but where should you start? Stop guessing! The Financial Quotient (FQ) Test is a quick, insightful assessment designed to show you exactly where you stand and what your next steps should be. Click here.
2. Did you make a New Year’s resolution to finally get your finances together? The FQ Trilogy gives you the complete toolkit to succeed! We don’t just teach you how to save; we teach you why you save, how you spend, and how to design a system that makes financial peace automatic. Click here.
This article is also published in Philstar.com
