It is 2026, and a new year brings a new beginning.
2025 taught us many lessons. In a year, we can accomplish massive things. But we usually don’t.
New beginnings are precisely the best time in our lives to enact changes that benefit us.
Professor Katy Milkman of The Wharton School calls this the fresh-start effect.
These are points in time that are significant to us. Days like birthdays, new semesters, the first day of the month, and of course, New Year’s Day.
Our motivation to change our lives for the better peaks on these days. To take advantage of this, let’s consider some financial resolutions for 2026.
1. Invest in your health
Health is wealth.
Being sick is expensive. Being sick is also miserable.
But being healthy enables us to be happy.
We can use money to help encourage us to be physically healthier.
Signing up for a gym membership or ClassPass can encourage us to take part in fitness activities. It creates an incentive for us to stick to our fitness regimen and shows that we value our physical health.
2. Invest in experiences over things
Experiences make us happier than material possessions.
This year, set aside some money to pursue activities that you find meaningful or enjoyable.
The classic example is a vacation. But holidays are not the only experiences that stand out. Fun activities like art jamming or even cycling by the beach can all be bonding experiences with the people we value in our lives.
Experiences are less susceptible to social comparisons. They are also a bigger part of our identity. And most of all, they enhance our friendships and social connections.
3. Invest in your relationships
The number of friends we have peaks in our twenties.
As adult responsibilities increase, it becomes all too easy to drop our friendships. Monthly meet-ups become yearly ones, and that’s for those that even meet anymore.
Good relationships are the best predictor of long-term happiness.
But they must be carefully nurtured over time. Like a plant, they will need time and care to grow.
For older adults, loneliness is dangerous – moreso than even obesity.
Loneliness can raise an adult’s chance of dying by 26% in a year.
Think about the ways we can spend our time on Earth with those that matter to us.
Then make it a plan by reaching out to them.
4. Invest in saving time
Some tasks like gardening take time, but are enjoyable and fulfilling.
Some tasks like chores are a drain on your mental energy and willpower.
We can use our money to redirect our time towards rewarding, not draining tasks.
Paying for convenience can help us to live a life that we find more rewarding and meaningful.
Cleaning, transport, and dining out are all services that can replace time-consuming and draining activities.
Think about what you dread the most, and if you can spend some money to make it less of a pain.
5. Invest in automation
Automation is a huge time-saver.
I can automate my monthly allowance to my parents, and I do.
We can do that for our whole financial life.
Automation lets us save, invest, and spend automatically, without worrying about the how and why.
This reduces the friction and cognitive effort needed to manage your money.
Think of it as spring-cleaning for your bank account. We’re clearing out the cobwebs so that you can enjoy a cleaner financial life.
With Chinese New Year coming up, now is the time to sort out those financial systems that you’ve been putting off.
Automate your savings and investments. You will be surprised at how much time and mental energy this will save you.
And with this newfound energy, you can pursue all your other resolutions as well.
Wishing you, dear reader, a very Happy New Year.
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