Each year brings new developments to your life and your finances. For example, a job change, family expansion, or rising prices can shift your financial landscape without warning. That’s why setting aside time once a year to do a personal finance checkup is one of the smartest habits you can develop.
Think of it as your annual physical, but for your wallet. And with today’s rapidly evolving financial tools, like those provided by Maya Bank, it’s easier to review your finances and check if you’re keeping up with your goals. Moreover, just like how Maya has made it more convenient to do an online credit card application, it has also made financial tracking and adjustments more accessible. Yet convenience alone won’t grow your wealth. It’s your mindset and habits that truly matter.
So, if you want to become more financially resilient and intentional, here’s a practical guide to what you should review each year and why it makes a difference.
1. Budget vs. Actual Spending
Start by reviewing your original budget versus your actual spending over the past year. Your budget shows what you planned to do (i.e. your goals); your expenses reveal what you actually did (i.e. your habits).
Let’s say you allotted PHP 15,000 per month for groceries but averaged closer to PHP 20,000. Where’s the gap coming from? Could it be due to price inflation, impulse buys, or other shifts in your spending habits? To find the root cause, go through your bank or credit card statements and group your expenses into categories like groceries, bills, entertainment, subscriptions, dining, and online shopping. This process reveals your true financial behavior. And it’s often eye-opening. You could discover that you shop online at least once a week.
When you have an idea of the bigger picture, you can find ways to adjust your budget, cut unnecessary expenses, and prioritize what truly matters.
2. Life Changes
Life doesn’t stay the same, and neither should your financial plan. So, ask yourself: did anything major happen this year? A new job, relocation, a wedding, the birth of a child, or even a health emergency? Each of these events comes with financial consequences. If your monthly expenses increased due to daycare or medical bills, it might be time to recalibrate your emergency fund or savings rate. On a more positive side, if your income improved, consider increasing your contributions to savings or investments.
3. Financial Goals
Every year is a chance to check whether your goals still match your priorities. You may have focused on debt repayment last year, but now you might want to travel or save for a house. For example, if your new goal is to stretch your money further, the Landers Cashback Everywhere Credit Card can give you up to 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions.* It’s perfect if you’re a Landers member and a frequent shopper at the superstore.
When you shop at Landers, you’ll start with a base cashback rate of 3% if your total credit card spending is below PHP 20,000. This rate increases to 4% when you spend a minimum of PHP 20,000, wherever you use your card, and then it increases further to 5% when you accumulate a total qualified credit card spending of at least PHP 50,000 during the month. You can also collect points with your card. Each point you collect is equivalent to PHP 1, and the points you accumulate can be used as a discount on your next purchase at Landers.
So, if you’re thinking of switching cards to match your updated goals, consider applying for the Landers Cashback Everywhere Credit Card today. It’s fast, convenient, and offers better control over finding a product that truly fits your lifestyle.
4. Debt
Debt often builds up slowly, and unless you track it, you may underestimate how much you owe. So, list down all your outstanding debts: auto and housing loans, credit card balances, personal loans, installment plans, or even informal loans from friends or family. Then, take note of the interest rates. Are you carrying a balance on a high-interest credit card month after month? If you are, then that’s the first one you should aim to pay off. Also choose debt reduction strategies that work for you, and see if you’re able to consolidate your debts. The best strategies should be the one you stick with consistently.
5. Retirement Savings
For a lot of people, retirement might seem like a long way off, but small steps today create big results tomorrow. Moreover, many Filipinos rely solely on SSS or GSIS benefits. But these might not be enough for a comfortable retirement. So, explore supplementary options like a PERA (Personal Equity and Retirement Account), a Pag-IBIG MP2 account, mutual funds, or even life insurance with investment components. Even putting aside PHP 500 or PHP 1,000 more per month can compound into a sizable fund over time.
Reflect, Refocus, and Reset
Once you’ve reviewed your numbers, debts, savings, and spending habits, take time to reflect. What went well this year? Where did you slip up? What new habit would move the needle in your financial life?
This is also the time to reevaluate the tools you’re using. Does your credit card still match your spending style? Are you making the most of rewards and features like those offered in the Maya app? Have you explored new offers through a credit card online application in the Philippines that better suits your needs?
After reflecting, set a clear but realistic focus for the next 12 months. Whether it’s building a three-month emergency fund, finally opening a time deposit account, or maximizing your cashback rewards, pick one or two financial goals and make a plan. You don’t need a massive overhaul for the next year; even small, steady steps over time leads to lasting change.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
