Looking to improve your financial situation in 2026? Do these five things

arrival of a person new year Often spark new motivation to achieve personal goals, from eating healthier to decluttering your home.

It’s worth noting that many resolutions focus on key financial goals: tackling credit card debt, saving for a new home, or simply improving personal financial goals. money Management knowledge.

“The New Year is really a good time to review and realign your overall financial goals,” says Erica Grundza, a certified financial planner at Betterment, an investing and savings app.

Grundza recommends focusing less on the past and more on an optimistic but realistic vision of the future when setting 2026 goals.

She recommends that you focus on redefining the “why” behind the way you treat money and how you want it to work for your life.

This can be something as simple as putting aside $10 a week in a savings account, or it can be a bigger goal, like saving up to buy a house in the next few years. It’s all about your own journey.

The Associated Press spoke with people making financial plans for 2026. Here’s a look at their plans and how to draw inspiration for your own:

Make achievable plans

MarieYolaine Toms, coach and founder of financial coaching company Focused Fire, says resolutions can easily turn into unattainable goals that feel more like a dream. To avoid setting unrealistic expectations, Toms follows a “no resolutions” mentality and instead focuses on developing a workable plan.

“I say every year, I’m not making resolutions, I’m making plans that can be tracked, retroactively and adjusted forward to completion,” Toms said.

Recently, Toms encouraged her clients to check their credit reports with the three credit bureaus and develop a feasible plan to open a savings account based on their credit report. For example, add $25 to their savings account every week.

Whether you want to pay off debt or save for a vacation abroad, the first step in making a plan is creating a budget. When creating a budget, it’s best to find a technique that works for you, whether it’s the classic 50/30/20 plan or another budgeting method.

pay off debt

Rachel Pelovitz, 33, had to take a closer look at her finances after she lost her job as a magazine editor in September. Pelowitz had racked up significant debt over the past few years due to her husband’s year-and-a-half-long unemployment, and she explored several options for repaying the debt. Ultimately, Perowitz and her husband chose to sell their home and work with a debt consolidation group.

“We are currently selling our house rather than relying on acquiring more debt,” Perowitz said.

Perowitz’s main goal for 2026 is to pay off half of his credit card debt. And, use some of the money from selling your house to start investing moderately.

Create a savings account

to Jenny plumAt 27, this will be the year she gets serious about building her savings account. Although Lee considers herself a good spender in general, she has overspent in the past six months and wants to get her spending under control. Lee’s long-term goal on his savings journey is to buy a house.

“I’m now in my 20s and I’m starting to think hard about my current predicament so that I won’t be hurt when I finally decide to buy and own a place,” said Li, a tech worker and lifestyle Tik Tok Creator based on chicago.

As she saves for her future home and possible travel South KoreaLee hopes to reduce unnecessary spending on clothing and dining out.

Social media microtrends have a pervasive impact on people’s shopping decisions, which can lead to overspending.

Build an emergency fund

If you have the ability to do so, hitting multiple financial goals simultaneously can be a great way to speed up your progress. For Worcester resident Melanie Duarte, 23, her New Year’s financial goals include paying off student loans and credit card debt while building an emergency fund.

“I make sure to work it into my budget, even if it’s as little as $50. I just want to make sure I still put some money in (my emergency fund) so that it eventually grows exponentially,” said Duarte, who owns a marketing agency.

When Duarte was growing up, her family never spoke publicly about her finances. But since she opened her business, Duarte has slowly been working to rewrite her relationship with money.

Find balance

Finding a balance between saving for long-term goals and ensuring you enjoy your money is important, but can also be challenging. When 26-year-old Tiana Stewart’s grandfather died a few years into retirement, she felt she couldn’t enjoy the fruits of her labor. So last year, Stewart decided to enjoy her life and travel.

“I do understand that saving for retirement is important, but I also want to enjoy my current life and the money I make from my job, especially in my 20s,” said Stewart, who lives in Maryland.

But now, as Stewart reflects on her financial future, she wants to focus on paying off debt, saving and investing. She wants to strike a healthy balance between enjoying life and saving for the future.

For some people, participating in a budget challenge like a “No Buy Year” can be a great way to set spending boundaries and set aside money toward financial goals. Many people start such a challenge at the beginning of the year and commit to continuing it until the end of the year, but others start in the no-buy months.