2026 New Year's Money Resolutions
December 29, 2025
Feeling the pinch every time you check out at the grocery store? You are far from alone.
Persistent inflation remains a major concern for households nationwide, with nearly half of Americans citing rising day-to-day costs as their top financial worry. Food prices alone climbed more than 3% nationally in 2025, adding pressure to already strained budgets. While forecasts suggest grocery inflation may cool somewhat in 2026, the financial strain many families feel today is real—and ongoing.
Rather than waiting for prices to settle, many people are responding proactively. Across the country, households are reassessing priorities, setting clearer goals, and building more intentional financial plans.
Financial resolutions are emerging as a practical way to regain control in the year ahead. Although nearly one-third of Americans describe their relationship with money as stressful, a strong majority say they have a plan to reach their financial goals. Even more encouraging, interest in setting financial resolutions continues to rise, signaling a renewed focus on thoughtful planning in 2026.
If you want to turn that momentum into meaningful progress, consider the following steps to strengthen your financial foundation this year.
1. Take stock of your financial picture
Before you can make progress toward any goal, you need clarity on where you stand. Set aside 30 to 60 minutes to review your full financial landscape—income, expenses, debts, and savings. This snapshot can help you identify priorities and determine how much flexibility you have to allocate toward future goals.
As part of this review, look closely at:
● Your monthly take-home income
● Essential expenses such as housing, food, insurance, and utilities
● Discretionary spending like travel, dining, and entertainment
● Outstanding debts, including balances, interest rates, and minimum payments
Seeing everything in one place can make it easier to decide whether your focus should be cutting expenses, paying down debt, or increasing savings—all of which can free up cash for longer-term goals.
2. Revisit your budget with future goals in mind
A budget should evolve as your life changes. Think of it as a flexible framework rather than a rigid set of rules. Establishing clear spending boundaries can help you stay aware of where your money is going and make room for priorities that matter most, such as retirement savings.
Many Americans find money management overwhelming, particularly younger generations juggling rising costs. Starting with a clear inventory of your finances can replace uncertainty with structure and confidence.
3. Protect your progress with adequate insurance
Building wealth takes time, so protecting what you’ve accumulated is essential. Maintaining appropriate insurance coverage—health, life, and disability—can help shield your finances from unexpected disruptions.
Employer-sponsored insurance plans often provide coverage at lower costs than individual policies. Taking advantage of those benefits can be an efficient way to safeguard your income and assets. Insurance may feel unnecessary until it isn’t—but when an unexpected event occurs, having coverage can prevent a financial setback from becoming a long-term obstacle.
4. Plan ahead for health care costs with tax-advantaged accounts
Health care expenses are a reality at every stage of life, and planning for them can reduce future stress. If you’re enrolled in a high-deductible health plan, a health savings account (HSA) can be a powerful tool. Contributions are tax-deductible, invested balances can grow tax-free, and withdrawals for qualified medical expenses are not taxed.
HSAs also offer flexibility: funds do not expire, and you can choose how much to keep in cash versus investments. If an HSA isn’t an option, a flexible spending account (FSA) may still help by allowing you to set aside pre-tax dollars for medical expenses—though unused funds may be forfeited at year-end depending on employer rules.
5. Build a starter emergency fund
Unexpected expenses—car repairs, medical bills, or temporary income loss—can quickly derail financial progress. Establishing an emergency fund provides a financial buffer during uncertain times.
A common starting point is setting aside $1,000, then gradually working toward covering three to six months of essential expenses. Keeping this money in a high-yield savings account or money market fund can help preserve accessibility while earning a competitive return.
6. Capture your employer’s retirement match
When juggling near-term priorities, long-term goals like retirement can fall down the list. However, if your employer offers a 401(k) match, contributing enough to receive the full match is one of the most effective financial moves you can make. Employer matches are essentially additional compensation—and missing out is leaving money on the table.
As you contribute, periodically review how your investments are allocated to ensure they align with your time horizon, risk tolerance, and broader goals.
7. Reduce high-interest credit card debt
Credit card balances with high interest rates can quietly erode your cash flow. Paying more than the minimum each month can significantly reduce the total interest you pay and accelerate your path to becoming debt-free.
If you carry multiple balances, consider focusing extra payments on the card with the highest interest rate while maintaining minimum payments on the rest. Alternatively, some people find motivation by paying off the smallest balance first and rolling those payments forward.
8. Strengthen your emergency savings over time
Once you’ve built a starter fund, aim to expand it into a fully funded emergency reserve. This level of savings can provide meaningful protection against larger disruptions such as extended unemployment or major medical issues.
The appropriate amount varies by household, but factors like job stability and the number of income earners can guide how much you may want to set aside.
9. Address remaining debt with rates above 6%
After eliminating high-interest credit cards, review other debts such as auto or personal loans. As a general guideline, debts carrying interest rates of 6% or higher may warrant accelerated repayment before directing additional funds toward investing beyond any employer retirement match.
Paying down these obligations can improve cash flow, reduce financial stress, and create more room for future goals.
Start the year with intention
Taking deliberate steps early in the year can help you regain control and build momentum. With thoughtful planning and consistent action, 2026 can be a year of meaningful financial progress. If you need guidance along the way, working with a financial advisor can help you turn these strategies into a plan tailored to your situation.
Sources:
https://www.fidelity.com/learning-center/personal-finance/best-new-years-resolutions-ideas
Disclosure:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.