According to Bankrate's Financial Freedom Survey,only about 1 in 4 Americans feel completely financially secure — meaning the majority of households still feel financial stress heading into a new year.
If that sounds familiar, you’re not alone.
With continued economic shifts, rising costs, and uncertainty around interest rates and inflation, 2026 is the year to get proactive, not reactive, with your finances.
The good news? Getting your financial life in order doesn’t require perfection — or a finance degree. With a little planning and a few intentional habits, you can take meaningful control of your money and reduce stress along the way.
Here’s where to start.
Why you should be prioritizing your personal finances for your New Year's Resolutions:
- Though thinking about your own mortality can be anxiety-inducing, you never know what could happen to you. Getting your finances in order can help your loved ones out if something should happen.
- Help yourself by being prepared for emergencies, such as unexpected medical bills, household appliances needing replacement, vehicle repairs, etc.
- Streamline your bill paying to decrease stress and prevent missing payments.
- Creating a budget (or at least keeping better track of your expenses) also leads to less stress, helps you make wiser spending decisions, and saves money.
There are multiple facets to getting your finances in order: Budgeting, reducing debt, and smart investing. Luckily, you don't need a master's degree in accounting to get started on taking control of your own finances. Today, we're sharing some essential tips to get your personal finances prioritized for a stress-free new year.
#1 Create a Budget
Making a budget is the best way to keep track of your money. You can compare your income and monthly expenses to find areas that could use improvement. Implementing a personal finance budget doesn't mean you have to live frugally. It can make your life less stressful and more comfortable.
Here are the basic steps for creating your own budget:
Gather your financial statements: This includes, but is not limited to, pay stubs, utility bills, and bank statements.
Total your monthly income: This can include take-home pay amounts as well as other regular monetary sources, such as child support.
List your monthly expenses: Include all of your regular expenses, such as utility bills, insurance payments, car payments, groceries, and so on. Be sure to factor in eating out and entertainment costs as well. And remember, a budget only works if you are completely honest about your expenses.
Differentiate fixed and variable expenses: Fixed expenses, such as car payments, are those you pay the same (or very close to) each month. Variable costs include items such as groceries, gas, and fun. Next, determine how much you will need to spend each month on each category.
Determine your monthly income and expenses: If your expenses are more than your income, changes will need to be made to the amount you “splurge” on each month.
If you are looking for some resources, we have included some template links below to get you started:
How To Stick To Your Budget for 2026:
- Automate monthly payments
- Set up monthly finance checks with a family member or your advisor
- Set specific, measurable goals for the year
- Get organized before the year starts
- Prioritize retirement
#2 Review Spending Habits
Many of us indulge in comforts or entertainment-related expenditures each month—whether it's a daily latte, Friday pizza nights, or attending live games to cheer for our favorite team. While it's natural to treat ourselves occasionally, these variable expenses can accumulate without us noticing.
Spending $3.50 on a latte every workday might not seem significant, but over a month, it totals $80.50! Taking a closer look at these "extra" expenses and reining them in can make a substantial difference in your savings.
The first thing to do here is pay attention. Don’t just swipe your card and forget about every purchase you make. By taking time to actually review what you’re spending money on, you can better assess your spending needs and wants and help stick to your budget goals.
While some expenses, like rent or gas prices, may be beyond your control, there are still ways to save on necessities. Lowering utility bills can be as simple as adjusting your thermostat, using energy-efficient lightbulbs, and being mindful of water usage. Food? Try eating out less or capitalizing on local happy hour specials. Trying meal planning and sticking to a well-planned grocery list can prevent unnecessary purchases.
If your work commute involves fluctuating gas prices, consider filling up in a town where prices are consistently lower. Even a $0.10 difference per gallon can lead to notable savings over time. Making these small adjustments can have a significant impact on your monthly budget.
#3 Assess Insurance Coverages
An often overlooked way to reduce your expenses is re-assessing your insurance coverage. Don't limit yourself to health insurance, either. Many life events can affect your car, life, and homeowner's insurance, too.
An article from the Insurance Information Institute provides some valuable things to consider when assessing your insurance coverage for the year.
- You can get discounts for multi-car policies. (Say, by adding a spouse or child.) Some insurance companies offer discounts to those 50-55 years and older. You may also get lower premiums if you have recently retired and are no longer driving nearly as much.
- Look into cutting your life insurance premiums, especially if your income has decreased. Also, look into consolidating multiple policies into one, as you could receive a lower rate.
- Stay “in-network” when seeing doctors. You'll either have no co-pay or a reduced one. Oftentimes, you'll have to pay full price when you see an out-of-network doctor.
Do you qualify for Medicare Open Enrollment?
#4 Know Your Net Worth
You've likely heard the term “net worth” when referring to a famous actor's worth. But what does it have to do with your finances? Quite a lot!
Net worth isn't just a term used for the very wealthy. It's actually a very helpful tool in keeping track of your overall financial health. Net worth refers to the value of your assets after all of your liabilities have been accounted for. It paints a more accurate picture of your financial situation and whether you're reaching your goals or not because it does not take your income into account.
You may also hear the term “liquid net worth.” It is slightly different in that it doesn't consider non-liquid assets, such as real estate, into its amount.
Calculating your net worth is fairly simple. Add up all of your assets (I.e., the value of your house, investments, retirement savings, etc), add up your debts (mortgage, loan payments, medical debt, and the like), then subtract your debts from your asset total.
Knowing your net worth will let you know how your personal financial goals are progressing over the months and years. You will see noticeable increases when your retirement savings accumulate, when you've worked on building your emergency fund, pay off debts (such as student loans), and much more.
#5 Pay-Off Debt with Highest Rates
Paying off debt is an important (and liberating!) step to financial freedom. But which one should you work towards paying off first?
While making minimum payments on all of your loans, credit cards, etc., each month may sound tempting, which often leads to paying much more in interest over time. Several other recommended strategies will help you pay off those outstanding debts faster.
- Pay off your high-interest loans first: No one likes paying extra on interest. This strategy helps you save money in the long run.
- Pay off your lowest debt first: This is a great motivator for sticking to your debt repayment goals.
- Pay off the debts that affect your credit score the most: This plan is in your best interest if you're looking to make a big purchase, such as a home or vehicle, where your credit score needs to be favorable.
#6 Consolidate Debt
Debt consolidation can give you lower interest rates, helping to pay off all of your debts faster. It also helps streamline your bill-paying, making it easier and less likely for you to forget a payment. So, what is debt consolidation?
Debt consolidation is simply combining several debt payments into one monthly payment. There are several ways you can consolidate debt. Let's take a look at some of the most common ones below.
- Debt consolidation loan: If you have a decent credit score and are timely with your payments, you may qualify for a special bank loan to help pay off your smaller debts.
- Balance transfer credit cards: These allow you to transfer your current credit card balance. The perk is that these credit cards often come with extended 0% APR periods, giving you a lengthy headstart on paying back the debt interest-free.
- Home equity loans: These are similar to mortgages, and you will receive a lump sum upfront. One of the main differences, though, is that you must make equal monthly payments of interest and principal until it is paid off.
#7 Make Wise Investments
With so many options for retirement funding, there is no reason to not get started right away! However, this can also make it overwhelming to know which ones are best for you.
For many, it is easy to simply rely on an employer-sponsored 401(k) plan or the like to save for retirement. But why stop there? A plethora of ways to invest for retirement that can be used in conjunction with traditional savings plans are waiting out there. These include IRA plans, annuities, stocks, and bonds.
Each option has its own perks and drawbacks. Before choosing any IRA plan, you should consider whether you want taxes taken off your deposits now or wait until you start withdrawing from your account upon retirement. When it comes to investing in stocks, you may want to take more risks when you are younger (and have time to make up for any major losses). It is recommended to stay more conservative when it comes to risk-taking if you are closer to retirement age.
Start The New Year Off Strong
Getting your personal finances in order can seem like a daunting task. But, if you take some time to create financial goals and plans that you can stick to, you're sure to get your financial priorities straight in no time.
- Making a budget is a smart choice no matter what stage of life you are in. It can help you not only save for a rainy day but help you tackle debt.
- Evaluate your spending habits. This can be very eye-opening. Oftentimes, we don't even realize how much we are spending on unnecessary luxuries!
- Reassess your insurance coverage. Certain life events can create opportunities to get discounts or reduced rates on medical, car, and homeowner's insurance.
- Calculate your net worth. This is greatly beneficial to keeping track of your long-term financial goals.
- Make an extra effort to tackle your debt. It's much easier to save money once you've rid yourself of mortgages, school debt, car payments, credit card debt, and more.
- Consolidate debt. This not only makes bill paying easier but can also get you reduced rates.
- Make smart investments. Whether you're saving up for a child's college fund, your own retirement, or just because, be sure to research all of your options first to find the ones that are right for you.
Need help with financial goals and planning? The professionals at Benefit and Financial Strategies are happy to help you make informed decisions about your financial future. Give us a call or send us an email today!