New Year’s Resolutions are often focused on physical and mental health improvements such as exercising more, eating healthier, and limiting time on social media. These goals can greatly improve your life, but you should also consider your finances when creating objectives for the year.
The actions you take this year can set you up for financial success later in life. So, do your future self a favor and include financial goals in your New Year’s Resolutions. Like all goals, your financial resolutions will be specific to your situation, but here are six ideas to get you started.
#1 Save More for Retirement
No list of financial goals would be complete without mentioning retirement savings, and maximizing your savings is so important that it is the number one resolution on our list. A commitment to saving more for retirement is one of the most impactful goals you can achieve this year, but it doesn’t have to come at the expense of your lifestyle.
There are many ways to save more without impacting your monthly budget. One common way is to save your raise – meaning devote your annual salary increase to retirement. You won’t miss these funds in your monthly budget, but they can help you make significant progress toward your retirement goals.
As you plan your savings, consider the type of account that will bring the most long-term benefit to your financial plan. Your employer may offer a 401(k), or you can invest in an Individual Retirement Account [IRA]. You can even combine these types of accounts to maximize your savings and tax benefits.
If you add more to your retirement accounts this year, you get one step closer to the nest egg you will need for a comfortable retirement. Further, the earlier you save, the more time you have to reap the benefits of compound returns.
#2 Make a Budget and Stick to It
Another vital goal you can achieve this year is to create a spending plan and stick to it. Short-term spending goals help you ensure your needs are met in the present and help uncover cash to add to your retirement savings – making budgeting a win-win for your financial goals.
A successful budget starts with an honest look at your current spending. You can do this by reviewing your credit card and bank statements for the past year to understand how you spent your money. Then, you can set reasonable goals for improvement in the new year.
Once you have specific spending goals, choose a method to track your progress. A specialized app, spreadsheet, or even a handwritten budget can help you monitor transactions and keep your goals front and center.
Budgeting is difficult at first, but it becomes a habit over time. If you create this routine in 2026, you can maintain it much more easily in the future, leading to greater clarity and confidence in your ability to manage money.
#3 Choose Wise Investments
The first two goals on our list are focused on saving, but it is equally important to choose the right investments to grow the funds you’ve saved over time. After all, earning a better return today can have a huge impact on your future savings, thanks to the power of compounding returns.
There are thousands of investment options available for your retirement savings, so it takes a great deal of effort to identify the right ones. The fact is, you could spend hours evaluating your investment options and still make an uninformed choice. On the other hand, you could discuss your investments with an experienced financial advisor. The right advisor will have a system for choosing the securities that match your unique situation.
A customized investment plan from an experienced advisor can help you harness the power of compound returns. With the right investments, you may meet your goals sooner than planned or even achieve an early retirement.
#4 Build an Emergency Fund
Unfortunately, financial emergencies are common, so you need to prepare for them in advance. If you don’t have an emergency fund, establish one now and plan to fund it throughout the year. If you do have one, review it to ensure that it is both fully funded and invested properly.
An emergency fund is designed to help you save for the unexpected – like car trouble, home maintenance, or employment changes. This cash keeps you from going into debt or accessing retirement savings to pay for an unplanned expense.
Conventional wisdom says you need enough cash to fund expenses for three to six months. However, the ideal amount to save in your emergency fund can vary depending on your lifestyle and obligations. An experienced financial advisor will review your situation and help you calculate the optimal emergency fund balance for your family.
In addition to saving the right amount for unexpected circumstances, you also need to ensure your emergency fund is safe, accessible, and separated from your everyday spending money. Savings accounts, money market accounts, and money market mutual funds are all popular choices for emergency funds because they achieve all three of these goals.
By prioritizing your emergency fund, you can approach the new year with confidence. You’ll have peace of mind, knowing that you are financially secure if an unexpected expense arises.
#5 Reduce High-Cost Debt
Excessive debt erodes your budget and prevents you from saving, so set a goal to reduce your debt this year. You should always make at least the minimum payment on all your obligations, but any additional funds that are earmarked for debt reduction should be applied in the most advantageous fashion.
The avalanche method of debt reduction has the most profound impact on your net worth, because it pays the loan with the highest interest rate first. This is the preferred method, because it eliminates your total debt the fastest and with the least interest paid. However, some special circumstances might lead you to a different strategy.
For example, when low-balance loans with high minimum payments consume your monthly budget, you might consider the snowball method. This strategy pays additional cash toward loans with the lowest balance first, with the goal of improving monthly cash flow each time a loan is fully repaid. This method is more costly in the long run and only works well for very specific situations, so it is wise to switch to the avalanche method as soon as your budget allows.
A blend of these strategies, combined with restructuring of debt – like a consolidation loan – can often help you to meet your goals faster. If this seems too complicated, don’t worry. An experienced financial advisor can help you develop a debt-reduction plan that boosts your net worth and your confidence.
#6 Improve Financial Literacy
One of the most impactful goals you can tackle this year is to improve your financial literacy. All you need to do is read one or two articles per week. Then, make a list of questions to ask an experienced financial advisor who can provide the clarity you need. With a strong base of knowledge and answers to questions as they arise, you can boost your confidence and make informed choices to improve your financial health.
The right advisor can not only help you improve your financial knowledge, but they can also help with every goal on this list. With a trustworthy financial partner, you can start the year with specific, attainable resolutions, and follow through to end it in a stronger financial position.
Review Your Financial Goals with the Team at Meld Financial
At Meld Financial, our experienced team of tax, legal, and investment professionals can help you develop New Year Resolutions that are unique to your situation and support you as you achieve them. We can also help you plan your financial future beyond 2026 with our comprehensive wealth management plan – Financial Fingerprint®.
In a single, one-hour meeting we can develop your Financial Fingerprint®. It covers the most important aspects of your financial life including retirement, investments, and even government benefits from Social Security and Medicare.
To learn more about Financial Fingerprint® or to discuss your personal financial situation, contact us today.
