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New year, new money habits.
If this is one of your goals for 2026, we have plenty of information to offer. But knowing which techniques and strategies work best requires a level of financial literacy that many Americans simply don’t have. A recent report released by the National Council on Financial Education shows that the average person Loss about $1,000 per year Because financial education is poor.
independent Personal finance experts have been asked for their top financial moves to help you get off to a good start.
Smart savings through automation
one Study in 2025 A survey by financial firm Empower found that the average American savings balance is just $500, and one-third have no savings emergency fund.
Julian B. Morris, a certified financial planner and principal at Concierge Wealth Management, offers a simple tip that can help protect you from unpredictable financial emergencies in the future.
“The first thing that comes to mind is automating your savings,” he said in an email. The Independent. “When we can automate that, whether it’s an emergency fund, retirement or setting up general investment accounts, it turns progress into a default.”
Morris said this kind of money transfer works for most consumers because it “doesn’t rely on timing the market and picking the right investments. [or] Completely change your lifestyle. “
Determine your spending with a budget
Simple habits often have a big impact on the average person’s finances, and arguably no habit is more impactful than budgeting. Understanding your income and expenses is critical to taking control of your finances and building long-term wealth.
But where do you start if you don’t have a budget? Get a deeper understanding of your spending, says personal finance expert Andrea Woroch.
“When achieving your financial goals, it’s important to figure out where your money is going and create a budget to stop wasteful spending,” Woroch tells independent Via email. “Make a list of each recurring expense and calculate the average spend in fluctuating categories, as this will give you a baseline for your budget. You can then figure out where to cut and by how much.”
If you already have a budget and want to adjust it to include any work-related raises or bonuses, now is a good time to revisit your budget, says Mark Fowler, director of retirement education and small business 401(k) company Human Interest..
“The start of a new year coincides with performance review, bonus and/or raise season,” Fowler told independent in an email. “A practical thing to do is to re-evaluate your household budget. You know your savings/tax/personal budget rates and now you can predict how your salary is likely to grow in the new year.”
Once you have a revised budget, take some time to look ahead to what you hope to achieve with your finances.
“Now is an ideal time to take a step back and evaluate your long-term financial health,” Fowler said. “Ask yourself: ‘Am I moving toward where I want to be?’ If not, then consider what steps can improve your outlook.”
Improve your skills
2025 study The Pew Research Center found that only about half of Americans think they know “a lot” or “a fair amount” about personal finances.
These numbers, along with the results of other studies, suggest a financial literacy gap exists, said Casey Brueske, community education development specialist. PenAir Credit Union explains that you can solve the problem by educating yourself.
“Financial confidence starts with education – that’s the best advice we can give,” Bruske said. independent in an email.
Hiring a financial advisor is one way to improve your understanding of financial matters.
“Asking questions to a trusted advisor early and often can save you money and stress later,” she says. “Financial confidence grows when you understand your options. Seek advice from a certified financial coach It might just be what helps you succeed in 2026 and beyond. “
If you start to feel overwhelmed by all the information you find about smart money moves, remember that your goal is to take one small step toward building a sound financial knowledge base.
“You don’t have to know everything to make smart financial choices,” she adds.
Take control of your mortgage
Angie Hoger, a real estate agent with Berkshire Hathaway HomeServices Florida Network Realty, said homeowners with mortgages should consider new strategies for paying their home loans in 2026.
“I would…stress the importance of budgeting wisely so that you can pay as much extra on your mortgage as possible,” Hogg said in an email. independent. “Not only will it shorten the term of your mortgage, but you’ll pay less in interest. Even a few extra dollars a month can make a difference.”
How much of a difference can it make? You could pay an extra $100 per month over the life of a $200,000, 30-year fixed-rate mortgage with an interest rate of 4 percent, shortening the term of your loan by more than four years. According to Wells Fargo. Additionally, these additional payments will reduce the amount of interest you pay by $26,500.
Run a credit check
If you haven’t already scrutinized your credit report for inconsistencies and errors, now is a good time to do so, says founder of Travis Vayssie. Fintech lender SwipeSolutions.
“Pull your credit reports from all three bureaus,” Vayssie says, referring to Experian, Equifax and TransUnion. “no [just] Your score – your actual report. Look for errors, old accounts you forgot about, and stuff that shouldn’t be there. I often see people not knowing there is a collections account holding them back from where they were three years ago. “
Disputing incorrect information has the potential to improve your credit score and save you significant money in any area. loan You take it out this year.
“Eliminating disputes on incorrect late payments can boost your score by 30 [to] 50 points,” he said in an email independent. “That’s the difference between 12% getting approved [versus] 22% of next loan or [credit] card. “