New Year, Smarter Finances: How to Take Control in 2026
January has a way of making everything feel possible. A clean slate. New habits. A chance to reset. When it comes to your finances, this is one of the best times of year to pause, zoom out, and put a few intentional systems in place that can pay off all year long—and beyond.
You don’t need a complete financial overhaul. Small, thoughtful moves can create real momentum.
Here’s where to start.
Prioritize Retirement Contributions Early
One of the most powerful financial moves you can make is maxing out tax-advantaged accounts, especially when you do it consistently over time.
Roth IRA
For 2026, you can contribute up to $7,500 to a Roth or Traditional IRA ($8,600 if age 50+). Roth IRAs are subject to income limits, so eligibility depends on your modified adjusted gross income and filing status.
Why Roth?
Tax-free growth
Tax-free withdrawals in retirement
Flexibility for early retirees or those pursuing financial independence
If you’re eligible, funding your Roth earlier in the year gives your money more time to grow.
401(k) or 403(b)
Employer retirement plans remain a cornerstone of long-term wealth building. For 2026:
The employee contribution limit is $24,500
If you’re 50 or older, you can contribute up to $32,500
Some plans allow enhanced catch-up contributions for those ages 60–63, up to $35,750
Even if maxing out isn’t realistic right away, increasing your contribution by 1–2%—especially after a raise—can have a meaningful long-term impact.
Don’t Overlook Health Savings Accounts (HSAs)
If you’re enrolled in a high-deductible health plan, an HSA is one of the most powerful tools available.
For 2026, contribution limits are:
$4,400 for individual coverage
$8,750 for family coverage
An additional $1,000 catch-up if you’re age 55 or older
HSAs offer a rare triple tax advantage:
Contributions are tax-deductible
Growth is tax-free
Qualified medical withdrawals are tax-free
Used strategically, an HSA can function as both a healthcare buffer and a long-term investment account.
Build (or Rebuild) a Budget That Reflects Real Life
Budgets fail when they’re aspirational instead of realistic.
This year, focus on:
Understanding where your money is actually going
Accounting for irregular expenses like travel, gifts, and home repairs
Aligning spending with what you truly value, not what you think you “should” value
A good budget isn’t restrictive. It’s a decision-making tool that gives your money direction.
Review Recurring Bills and Subscriptions
January is a perfect time to clean up ongoing expenses.
Subscriptions
Streaming services, apps, memberships—it adds up quickly. Cancel anything you’re no longer using or enjoying.
Insurance & Other Recurring Services
Review auto, home, and renters insurance to see if there are better options
Compare phone, internet, and other utility plans—sometimes switching can save you money without sacrificing service
Small changes in recurring bills can free up cash for savings or investing.
Meet with a Planner
Even small changes can feel overwhelming if you’re not sure where to start. A financial planner can help you:
Explore different retirement timelines to see what’s realistic for your goals
Help you create a spending plan to meet your short and long-term goals
Create tax-smart strategies that make the most of your money
Focus on the moves that will have the biggest impact, so you don’t try to do everything at once
Working with a planner helps you focus on what matters most for your life and goals.
Set the Tone for the Year Ahead
Getting your finances in order isn’t about perfection. It’s about clarity, intention, and building systems that support the life you want, not just this year, but long term.
Whether your goals include early retirement, career flexibility, travel, or simply less stress around money, the actions you take now can shape how the rest of the year feels.
