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The 2026 Money Reset: 10 Steps to Reset Your Finances for the New Year


reset your finances


It's that time of year when everyone starts making New Year's resolutions. But let's be honest most resolutions fail by February. Instead of adding "fix my finances" to your list of abandoned goals, I want to help you reframe this entirely.


Think of this less as a resolution and more as setting up habits and systems that run on autopilot. Systems don't require daily willpower or motivation. They just work quietly in the background for you. Once they're in place, you'll have more time and mental energy for everything else in your life.


Below are 10 strategic steps you can take to optimize your financial life in 2026. Here's the key: you don't need to do all of them. You might already be crushing some of these. Others might be completely new to you. The goal isn't perfection, but rather it's about making progress.


Pick 1-3 that resonate most with your current situation and start there. Ready? Let's reset your finances for 2026.


1. Maximize Your 401(k) Employer Match (It's Free Money!)


If your employer offers a 401(k) match and you're not contributing enough to get it, you're literally leaving free money on the table. This is the easiest, highest-return financial move you can make.


How it works: Let's say your company matches 50% of your contributions up to 6% of your salary. If you make $60,000 and contribute 6% ($3,600/year), your employer adds $1,800. That's an instant 50% return on your money!


Action step:

  • Log into your 401(k) account or check with HR to see your current contribution rate

  • If you're not getting the full match, increase your contribution percentage immediately (if you can afford to do so)

  • You have all year to contribute, so starting in January means you'll capture the full match by December


Don't worry if you can't max out the full annual limit—just focus on getting that employer match first.


2. Open or Fund a Roth IRA


If you don't have a Roth IRA yet, 2026 is the year to open one. If you already have one, make sure you're contributing to it regularly.


Why Roth IRAs are powerful:

  • You contribute after-tax dollars (money you've already paid taxes on)

  • Your investments grow completely tax-free

  • You withdraw the money tax-free in retirement (after age 59½)

  • No required minimum distributions. Your money can grow as long as you want


Action step:

  • Open a Roth IRA with Vanguard, Fidelity, or Schwab (takes about 15 minutes)

  • Set up automatic monthly contributions (even $100/month = $1,200/year)

  • Invest in a target-date fund or total market index fund to keep it simple


3. Move Your Savings to a High-Yield Savings Account


This is by far the easiest item on this list and takes 5-10 minutes maximum. If your money is sitting in a traditional bank savings account earning 0.01% interest, you're losing money to inflation every single day.


The difference:

  • Traditional savings account: 0.01%-0.10% APY (earning pennies per year)

  • High-yield savings account: 3.5%+ APY as of late 2025 (earning actual money)


On $5,000 in savings:

  • Traditional account: Earn $5/year

  • High-yield account: Earn $200-$225/year


Action step:


  • Open a high-yield savings account

  • Transfer your savings from your old account

  • Update any automatic deposits to go to the new account


NerdWallet updates their recommendation list monthly: Best High-Yield Savings Accounts


You will definitely thank yourself for doing this. It's an easy way to make sure your money is working for you instead of earning nothing.


4. Audit Your Subscriptions (Pause, Downgrade, or Cancel)


When was the last time you actually reviewed what you're paying for monthly? Most people are shocked when they add it all up.


Common subscription culprits:

  • Streaming services (Netflix, Hulu, Disney+, HBO Max, Paramount+, Apple TV+)

  • Music streaming (Spotify, Apple Music, YouTube Premium)

  • Fitness apps or gym memberships

  • Meal kits or subscription boxes

  • Software subscriptions (Adobe, Microsoft 365, Canva Pro)

  • Premium memberships (Amazon Prime, Costco, LinkedIn Premium)


Action step:

  • Pull up your last 2-3 months of credit card and bank statements

  • Highlight every recurring subscription charge

  • For each one, ask: "Am I actively using this? Does it bring value?"

  • Pause or cancel anything you're not using weekly


Remember: In today's world, pausing or downgrading is incredibly easy. Most services let you pause for months at a time or switch to free/lower tiers. Try living without a subscription for 2-3 months—you can always reactivate it if you genuinely miss it.


5. Create a Plan to Eliminate High-Interest Debt


If you're carrying high-interest debt (anything above 7% APR), it's actively working against you every single day. Every month you carry that balance, you're handing money to credit card companies instead of keeping it for yourself.


Why 7%? This is roughly the threshold where debt costs more than you could reasonably earn by investing. Credit cards often charge 18%-25% APR, making them especially harmful to your financial progress.


Action step:

  • List all your debts with interest rates above 7%

  • Decide on a payoff strategy:

    • Avalanche method: Pay off highest interest rate first (saves most money)

    • Snowball method: Pay off smallest balance first (provides quick wins)

  • Calculate a realistic payoff date and work backward to determine monthly payments

  • Use our Crush Your Debt Tracker to create your personalized plan


6. Start a Work Brag List to Earn More


You are your own best advocate. No one else at your company is keeping track of your wins, your contributions, or the value you bring. That's your job—and it directly impacts your earning potential.


What is a brag list? A running document where you track every accomplishment, win, project completion, problem solved, or value added throughout the year. When review time or promotion conversations come up, you have concrete evidence of your contributions.


What to track:

  • Projects you led or completed

  • Problems you solved or processes you improved

  • Money you saved the company or revenue you generated

  • Positive feedback from clients, customers, or colleagues

  • New skills you learned or certifications you earned

  • Times you went above and beyond


Action step:

  • Create a simple document (Google Doc, Notes app, wherever works for you)

  • Set a monthly reminder to update it

  • When you accomplish something noteworthy, add it immediately (don't wait—you'll forget details)

  • Use this document to prepare for performance reviews, raise negotiations, and promotion requests


7. Review Your Big Expenses (Especially Insurance)


Everyone obsesses over cutting $5 coffee, but how many people actually review their car insurance or homeowners insurance annually? These "set it and forget it" expenses often waste hundreds or thousands of dollars per year.


Insurance to review:

  • Auto insurance: Shop around every 1-2 years; rates change based on your credit score, location, and driving record

  • Homeowners insurance: Compare quotes from multiple providers; consider bundling with auto for discounts

  • Life insurance: Make sure coverage matches your current needs (not what they were 5-10 years ago)


Other big expenses to audit:

  • Cell phone plan (can you switch to a cheaper carrier or plan?)

  • Internet service (call and negotiate a lower rate or switch providers)

  • Mortgage (is refinancing worth it given current rates?)


Action step:

  • Pick ONE big expense to review this month

  • Get 3 quotes from competitors

  • Call your current provider with competitor quotes to negotiate, or switch if they won't match

  • Repeat quarterly with different expenses


8. Set 1-3 Clear Financial Goals (Not 10)


Imagine driving around aimlessly in a busy city with no destination or directions. You wouldn't get anywhere, you'd just burn gas and waste time. That's exactly what happens with your money when you don't have clear goals.


Why only 1-3 goals? More than that and you'll spread yourself too thin, making zero meaningful progress on any of them. Focus creates momentum.


Examples of clear financial goals:

  • Pay off $5,000 in credit card debt by December 2026

  • Save $10,000 for an emergency fund by August 2026

  • Max out Roth IRA ($7,000) by December 2026

  • Increase income by $10,000 through raise/promotion or side hustle


Action step:

  • Choose 1-3 goals that matter most to you right now

  • Make them specific with dollar amounts and deadlines

  • Break them into monthly milestones (e.g., save $833/month to hit $10,000 by year-end)

  • Write them down somewhere you'll see regularly


9. Set Up Sinking Funds for Predictable Expenses


Sinking funds don't get nearly enough attention, but they're absolute game-changers for managing irregular expenses that always seem to "surprise" you.


What is a sinking fund? Money you set aside each month for expenses you know are coming, even if you don't know the exact date. Think of it as pre-saving for planned expenses so they don't feel like emergencies.


Perfect for sinking funds:

  • Holiday shopping (set aside $100-$200/month so December doesn't ruin your budget)

  • Annual insurance premiums ($1,500 insurance bill ÷ 12 months = $125/month)

  • Vacation or travel


Important: Sinking funds are different from your emergency fund. Emergency funds are for true unpredictable emergencies (job loss, medical crisis). Sinking funds are for expenses you know will happen.


Action step:

  • Identify 2-3 expenses that always seem to "surprise" you

  • Calculate annual cost and divide by 12

  • Open a separate high-yield savings account or use sub-accounts/buckets

  • Set up automatic monthly transfers


Want to learn more? Check out our podcast episode: The Best Budgeting Tool You're Probably Not Using: Sinking Funds


10. Budget Money for Fun (Yes, Really!)


This might be the most important item on this entire list. If you never spend money on things that bring you joy, you'll burn out, rebel against your budget, and end up worse off than before.


Why "fun money" is essential:


  • Prevents financial restriction burnout

  • Keeps you motivated to stick with your other financial goals

  • Eliminates guilt about enjoying your money

  • Stops you from binge spending when you finally "break"


What counts as "fun"? Whatever genuinely brings YOU joy and it won't look the same for everyone!


Action step:

  • Decide on a monthly "fun money" budget that fits your income ($50? $100? $200? $500?)

  • Put it in your budget as a non-negotiable line item, just like rent

  • Spend it guilt-free on whatever brings you joy

  • Don't let anyone else judge what you spend it on because it's YOUR money


Remember: The goal of managing money isn't deprivation. It's creating a life you love while also building financial security. Fun money keeps you balanced.


Final Thoughts


There you have it, 10 strategic moves to reset your finances for 2026. But here's what I really want you to take away from this: you don't need to do all 10 to make meaningful progress.

Maybe you're already maxing out your 401(k) match and have a Roth IRA, but you've been procrastinating on moving your savings to a high-yield account. Great, then do that one first. It takes 10 minutes.


The key is evaluating where YOU are in your money journey and choosing the steps that will make the biggest difference for your specific situation. Progress, not perfection.

Pick 1-3 items from this list. Put them on your calendar. Get them done in the first quarter of 2026. Then come back and pick 1-3 more. That's how you build momentum.

You've got this. Let's make 2026 your best financial year yet.


Resources & Tools



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