Christopher Liew: Why most financial new year resolutions fail

Looking to get your finances in order for the new year? Financial educator Lesley-Anne Scorgie shares tips for saving and paying off debt.

Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.

Every January, millions of people set ambitious financial resolutions for themselves with the goals of saving more, spending less, tackling debt, making a major purchase, or starting a business. By February, despite all of the good intentions, many of these goals have already gotten off track.

While this is sometimes due to a lack of discipline, more often it’s because their resolutions weren’t built to last in the first place. Below, I’ll go over some of the main reasons why most financial resolutions fail, and how you can give yours a better chance of reaching fruition.

Why most financial resolutions fail

The idea of achieving a goal is a lot easier than accomplishing the goal itself. Unfortunately, many of the big goals we set for ourselves aren’t designed with real-life habits, emotions, and economic pressures in mind.

These are some of the biggest factors that hold many back from reaching their financial goals.

Goals are vague and unrealistic

Resolutions like “I want to save more” or “I’m going to pay down my credit card” sound great on paper, but they don’t provide any real direction. Without a concrete dollar amount or time frame, there’s nothing to measure your progress by and nothing to adjust when life gets busy.

Unrealistic expectations and foggy goals can also lead to frustration. If your goal is too aggressive, even small setbacks can feel like failure, derailing you from continuing to work on the goal.

Deciding to overhaul all of your financial habits at the same time can be overwhelming and lead to burnout. Even if you are able to make some drastic changes, these changes often won’t be sustainable, which can make you feel like you’re failing, leading to you giving up altogether.

Over-reliance on motivation

Motivation feels great in the moment and can spur you into quick, decisive action. However, motivation also fades quickly.

If your financial plan depends entirely on manually transferring money, tracking expenses daily, or resisting impulse purchases, it’s likely to collapse once routines return to normal. Automation and simple systems keep you on track even when motivation dips.

What actually supports long-term change is structure and discipline. These allow you to keep on going, no matter how you feel on any given day.

Lack of accountability

Many financial resolutions fail because, after the first few weeks, people stop monitoring their progress. Without tracking, it’s impossible to know whether you’re ahead, behind, or drifting off course. Missed budget updates, forgotten spending reviews, or skipped check-ins with your financial advisor will make it easier for your old spending habits to return.

4 tips to make this year’s resolutions stick

If you want to follow through with your new year’s resolutions for 2026, you need to create a sustainable system that will allow you to make steady, consistent progress. Here’s how to stay on track.

1. Keep yourself accountable with a budgeting app

One of the easiest ways to stay on track with your goals is to consistently track them. In the old days, this meant writing up Excel spreadsheets, poring over your monthly bank and credit card statements, or keeping a detailed budget notebook.

Today, AI-powered budgeting apps make the process a lot simpler. Once you link your accounts to the app, you’ll be able to track your income, bills, and see exactly where every dollar is going - be it investments, savings, fuel, groceries, bills, or discretionary spending.

Many online banking/credit card apps also offer free built-in budget trackers, as well.

2. Use the SMART method

Just like using your phone’s GPS, setting specific financial goals will give you the direction you need to stay on track. SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound.

Instead of committing to “save more,” set your goal to “save $300 per month” or “build a $5,000 emergency fund by year-end.”

Creating clarity with each goal makes it easier to create a plan, set milestones, and track your progress.

3. Reduce friction

Instead of relying solely on willpower or raw discipline, make your financial environment work for you to support your goals.

Instead of blending all of your finances together, create separate accounts for bills, savings, and daily spending. If you’re prone to impulse buys, consider removing shopping apps, unsubscribing from marketing emails, or switching to cash for discretionary purchases.

4. Review your goals monthly

At the beginning of each new month, take a few minutes to look over your finances, check your budgeting apps/trackers, and take stock of how closely you’ve kept up with your goals. Ask yourself questions like:

• Did I make any progress toward my monthly milestones?
• What spending category did most of my money go towards?
• What are some things I can do to improve my progress for the next month?

If you have a partner, share your goals with them as well, and encourage them to help you. The more you can encourage accountability, the more likely you’ll stay on track with your goals.

Turning your goals into a reality

With rising living costs, tighter budgets, and competition from other priorities you may have in life, sticking to new financial habits can feel overwhelming.

Make sure that your goals are crystal clear, associated with exact dollar amounts, have deadlines, and milestones to help you keep track. Focus on maintaining realistic daily habits, keep yourself accountable with a financial advisor or partner, use apps to track your budget, and create systems so that you don’t have to rely on constant motivation.