I hate making new year's resolutions, so I'm setting 5 easy microsavings goals instead to save almost $4,000 by the end of 2023

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• I used to set unrealistic New Year's resolutions, like swearing I won't eat out all year to save more money.
• This year, I'm setting five microsavings goals to help me save $2,750 and invest $1,050 by the end of the year.
• Automating $5 weekly transfers into my investment account seems more realistic than overhauling my entire budget.

Like most people, I used to set unrealistic New Year's resolutions about money. 

Year after year, while reviewing my year-end finances, I would beat myself up for going out to a celebratory meal with friends who got engaged, or going to a play that I really enjoyed. I would swear up and down that I wouldn't eat out or have fun ever again, then set an unrealistic savings goal of $30,000 — nearly half of my salary.

This year, I decided to do things differently. I focused on my most successful savings strategy: microsavings, setting small automatic deposits into different saving and investment accounts.

I learned just how effective microsavings were for me when I checked my commuter benefits card. I was only depositing $21 each paycheck, an amount small enough for me to forget about every two weeks. When I finally checked my balance months later, I realized that I had $238.37 in that account.

That surprise money made such an impact on me that I decided to apply it to my 2023 savings goals.

Here's how I automated my savings and investments to meet each goal.

1. Car registration fees for 2024: $250

I know saving $250 seems insignificant, but car registration fees in the state of California are due in January — right after spending loads of money on travel and gifts for the holidays. Plus, every other year, I have to pay an extra $60 to get a smog test to renew my car registration.

I've always felt blindsided by this cost, even though it comes every year. Using a dedicated savings bucket in my Ally high-yield savings account, I'll be saving $10 per paycheck, which will add up to $240 by the end of the year, and I'll add an extra $10 during a low-spending month.

2. New laptop: $1,000

I've already saved $600 toward a new laptop, plus I have a cousin who works at Apple who can get me a sweet discount. All I need is an extra $1,000. To meet that savings goal, I'm saving 10% of my paycheck, roughly $200, until April 2023.

I already started this habit in 2022, and it's worked wonders for me. Putting 10% of my paycheck in a separate savings account that doesn't have a checking account or debit card attached to it kept me from overspending, and I plan to continue it in the new year.

3. Investments: $300

I was never interested in investing because I don't believe in putting my money in big oil companies included in the S&P 500, or in companies like Tesla, which mines raw materials from rainforests in The Philippines. Even though investing is never going to be 100% aligned with my values, I do think it's a solid way to secure retirement savings later in life.

This year, I opened an Acorns account with a $40 sign-on bonus through Scholly, a site that lists college scholarships and student loan payoff raffles. Acorns even has an option of investing in an ESG-themed portfolio, a mix of stocks and funds that includes companies that follow positive environmental, social, and governance principles. 

Besides investing my spare change, I also set an automatic deposit of $5 per week to meet my goal of investing $300 this year. 

4. Trip to Oaxaca in 2024: $1,500

I've always wanted to go to Oaxaca to celebrate the Day of the Dead. Because of the exchange rate between Mexican pesos and US dollars, I'll only need $1,500 to secure lodging, good food, and excursions while I'm there for at least a few weeks. 

After buying my laptop in April 2023, I plan on saving 5% of my paycheck, roughly $100, toward my Oaxaca trip.

5. Increase my retirement contributions by 1%

Right now, I contribute 3% to my 401(k), and I plan on increasing my contributions by 1% each year. I'll only be sacrificing $31.25 per paycheck, which adds up to $750 at the end of the year. With an employer match and an estimated 7% annual return, that $750 will grow into roughly $15,000 by the time I turn 65.