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The start of a new year is the perfect time to think about what you’d like to accomplish and set some goals to make your ambitions a reality. If finances tend to cause stress, taking small steps towards financial well-being can bring you more peace of mind in 2026. Below are some tips to help you prioritize your financial goals this year.  

Create and follow a budget. Budgeting is the best way to put you in control of your money; it will help you plan for your necessary expenses while showing what you can comfortably spend on non-necessities or save for future goals. An Excel spreadsheet is an effective and simple tool to budget, and there is a Monthly Budget template available. To get started:

1. Review 3 months of complete spending history
2. Group your expenses into categories, covering all necessities and typical spending patterns. Your budget should account for anything you need, such as groceries, transportation, housing, and insurance. In addition, it should account for your typical expenditure on non-necessities, such as restaurants, entertainment, and optional purchases. Any debt repayments you are obligated to make should be built in as well.
3. Ideally, you have at least a small buffer for miscellaneous expenses that tend to come up.
4. Compare your spending to your income; with any extra money you can pay down debt or focus on other goals. If there is a deficit, you’ll need to determine how to reduce spending.  
5. Update your budget as you spend and earn throughout each month.

Have emergency savings.  You should have money set aside in liquid savings (i.e. a savings account) so that you can overcome an unexpected expense without turning to debt or retirement assets. A fully funded emergency fund is about 3-6 months’ worth of living expenses. In other words, you should be able to live off your emergency fund for at least 3 months in the event you had no other income. However, this is often a significant goal, so if you are just building your emergency savings, focus on saving at least $1,500 – $2,000 for now. This will provide a buffer that should be able to cover many unforeseen situations.

Live below your means. Living below your means gives you breathing room. Having breathing room usually equates to less stress. When making a larger purchase or decision, like buying a home or car, keep the amount below your “max.” On smaller purchases, use a waiting policy – if you see something you want to buy, snap a picture or screenshot of it, think about it for a few days, and then decide if it is worth the expense.

For educational purposes only.