Here are 5 tips to stick to your New Year’s financial resolutions in 2026

In the age of social media, you may be fooled into thinking that the curated version of people’s lives that you see in your feed is reality. But Vancouver-based money coach Parween Mander knows that digital highlight reels too often paint a picture of people’s finances that doesn’t quite line up with their reality. “We don’t get to see their lows,” she says. “It’s hard not to compare your life to milestones that others hit. And that’s when shame starts to seep in.” Mander is an accredited financial counsellor and a proponent of New Year’s resolutions that focus on mastering your money. 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. Here are five tactics that could help you. Take stock of 2025 Before crafting a New Year’s resolution, Mander suggests a short, comprehensive audit of the year that just passed: familiarize yourself with your income, savings, investments, debt and major expenditures. That means glancing at every bank and investment account, every major bill and obligation. “It’s important to reflect on what went well or didn’t go well with finances in the previous year to create a roadmap for improvement,” she says. Once you’ve identified your goals, you can decide on a strategy. Build up savings Mander’s approach to debt deviates from the traditional approach of “aggressively tackling the debt very quickly” because she prioritizes savings and creating a buffer. It’s a sign of the times. The Financial Consumer Agency of Canada finds that more than half of Canadians (54 per cent) are struggling to pay bills. Get daily National news Terms and Conditions and Privacy Policy . 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. “For my clients, building up that buffer of savings first as an emergency fund is key,” she says. Mander recommends having at least three months’ worth of money to cover expenses and obligations, but six months may be appropriate if you’re self-employed or in an industry that’s susceptible to layoffs. 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. Slaying debt As you work on your savings goals, you can also tackle your debt. 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. There are, generally, two paths when it comes to reducing or, ultimately, eliminating your debt, according to Mander. One is to prioritize paying off your highest-interest debt. The other is the so-called “snowball effect,” where you completely pay off your smallest...

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