How to Set Yourself Up for a Better Financial Future in 2026
I’m not a big New Year’s resolution guy. For one, they are usually overly ambitious, and that’s why they fail. It is hard to make drastic changes to your behavior at a random point in time like New Year’s Day. But, a new year does offer new opportunities to improve. Small changes can make a big difference, especially when it comes to your finances.
In this week’s segment, Yahoo Finance offers 5 financial habits to start in January, backed by data. And they get a seal of approval from me.
Financial Habit #1: Create New Financial Goals for 2026
Number 1: Create new goals. According to Fidelity’s 2025 New Year’s Financial Resolutions Survey, 65% of participants felt optimistic about the new year, believing they’d be in a better financial position in the year to come.
Setting specific goals, AND creating a plan to reach them, can accelerate your trek to financial independence. Make the goal attainable. If you are not contributing to your 401k at work, don’t set a goal to max it out. But, if you are close to maxing it out already, bite the bullet. A few thousand dollars more per year can make a big impact.
Maybe you need to pay off credit card debt. Don’t just announce it. Get a debt elimination plan together so you can see the future date you’ll have it paid off.
Financial Habit #2: Negotiate Your Monthly Bills to Improve Cash Flow
Number 2: Negotiate your bills. According to a 2021 Consumer Reports survey, about 70% of participants who attempted to negotiate their utility bills got a rate reduction or another perk on bundled plans.
Freeing up cash flow is the first and best way to save for your future.
Financial Habit #3: Increase Retirement Contributions
Number 3: Increase your retirement contributions. Fidelity’s 2025 quarterly retirement analysis found that 17.4% of participants increased their 401k contribution in the first quarter, while only 4.9% reduced it.
Maybe you are getting a raise this year. Make plans to save it, instead of spend it. Maybe you can review your budget and find ways to cut expenses and save what you cut.
That brings us to
Financial Habit #4: Revisit and Optimize Your Budget
Number 4: Revisit your Budget. This is a great time to identity those streaming services you don’t really use, find services that are going up in cost like home and auto insurance, that you may need shop for a better rate.
Financial Habit #5: Check Your Credit Report for Errors
And number 5: Check your credit. You should check your credit at least once a year to make sure its free of mistakes.
A recent survey by Consumer Reports and WorkMoney found that of the respondents who successfully checked their credit, 44% found errors.
The Most Important Step: Create a Written Financial Plan With an Advisor
Above all these, use the new year as a time to jump start your path to financial independence by sitting down with a financial advisor and creating a written plan.
Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
