Financial Goals for the New Year: How to get a jump start planning out your finances for 2026
Ah, the end of the year! It’s a wonderful time to reflect on your successes and your stumbling blocks of the previous year, and to start to plan on how you can incorporate the lessons learned into your plans for the upcoming new year. While many folks tend to focus on health or fitness goals in January, a new survey from Ipsos found that among people who are setting New Years Resolutions, a whopping 97% will have a financial component to them. Here are the most common ones according the the survey:
70% plan to save more money
49% plan to spend less
39% plan to improve their credit score
35% plan to build another income stream/side hustle
Setting these aspirations is a great first step —- but how is the best way to execute them? These following steps are helpful ways to translate your New Years Financial Resolutions from aspirations to reality.
Draw our your Annual Prospective Budget for 2026: Too often, people budget from a post-facto, monthly perspective. While that is helpful data, that is a form of tracking spending, not budgeting. Budgeting is done in a prospective, looking forward manner. When you have this information, you can clearly see where there is room to reduce spending and where there is not. Clarity is key. You can click here to see the Financial Therapy Texas blog about how to set up this prospective annual budge.
Plan for Fun Money: Once you do step 1, you will see that the place in your budget that has the most wriggle room is the discretionary spending (i.e. Fun Money) line item. I do not recommend a “no spend” year or month, as that often causes a reaction of Revenge Spending after the fasting period is over. Instead, plan for your fun and choose a monthly Fun Money spend. If you are in a long term relationship and have co-mingled your assets, I recommend this Fun Money number be the same for each person in the relationship, regardless of who brings in more income to avoid resentment. This helps to put a boundary on spending without feeling suffocating.
Share your goals with friends and family: One of the largest influences on our spending habits is the company we keep. If you are trying to modify your spending and savings habits, it can be incredibly difficult when you have peer pressure to spend in ways that are not aligned with your goals. Letting friends and family know that you are shifting gears into more intentional spending can help ease this pressure. Also, you might inspire them to so the same with their spending behaviors. The answer does not have to always be “no” for events either — look back up to tip #2, you still have your fun money to use! You just have to be more selective and only attend the events that are important enough to spend your Fun Money.
If you, or someone you know, needs help with setting up their Financial New Years Resolutions, reach out! If I am not a good fit, I will help you find someone who is!
DrZepeda@FinancialTherapyTexas.com
https://www.financialtherapytexas.com/contact-us