5 Ways To Crush Your Finances in 2026
With new financial rules, shifting interest rates, and rising costs, 2026 presents a key opportunity to reset your personal finances.
Using a financial checklist can help you plan smarter, reduce debt, and start the year with clear money goals.
iStock
The new year is upon us, and the annual attempt at New Year’s resolutions is warming up. This financial checklist for 2026 isn’t the tedious effort of creating annual goals that are unlikely to materialize, but rather a guide to proactively achieve your financial goals in 2026.
In this checklist, there are several financial changes happening from 2025 to 2026 that are worth considering. Here’s how you can attack the new year intentionally to improve your personal finances.
1. Consolidate And Pay Off High-Interest Debt
The holidays have become a notoriously difficult time for millions of people. This year looks to be no different, as nearly half (47%) of people expect to go into debt for holiday shopping, according to a survey from the Association of International Certified Professional Accountants. This only adds to the existing credit card debt already on household ledgers.
If this is you, there are several things you can do to mitigate this.
- Move existing credit card debt to a 0% APR card. There are several 0% APR credit cards where you can roll over existing credit card debt to avoid high interest rates.
- Consider a consolidation loan from one of the best debt consolidation providers.
- Switch to cash to avoid overspending. Science tells us that when you spend on a credit card, it doesn’t impact your brain the same way as cash does. An MIT source says, “A leading hypothesis is that credit cards reduce the pain of payment so they ‘release the brakes’ on spending. Another hypothesis is that they ‘step on the gas’ by driving motivation to spend, which could create spending habits and potentially, for some vulnerable sections of the population, addiction.”
- Use a budgeting app to organize spending. The holidays can be chaotic and create overspending, without you even realizing it. A budgeting app can link to your bank and credit card accounts to track and keep your spending in check.
- Check out the budgeting calculator page links below to help personalize your budget.
Financial Calculator Links:
Here are several free calculator resources to help you run your numbers and make it easier to plan efficiently, compare your options, and make confident money decisions based on real numbers.
- Personal Loan Calculator
- Debt Consolidation Calculator
- Home Equity Loan Calculator
- HELOC Payment Calculator
- Debt Snowball Calculator
- Monthly Budget Calculator
- Early Loan Payoff Calculator
- Debt Snowball Budget Calculator
2. Look Into Refinancing High-Interest Debt
Interest rates have been crawling downward in 2025. The Federal Reserve has cut rates in each of the last three Fed meetings (September, October, and December), making borrowing money more affordable.
This means that if you locked in a loan before these rate cuts, there may be an opportunity to refinance your loan into a cheaper rate, making your debt less expensive.
Here are a few ways to make your existing debt cheaper:
- Mortgage: Mortgage rates have moved downward, and refinancing has become an option for those who bought in recent years with a higher rate. Keep in mind that refinancing a home is not free. Refinancing a house typically costs 2% to 6% of the new loan amount, covering closing costs like origination fees, appraisal, underwriting, and title services. So if you’re considering refinancing, be sure to keep these overhead charges in mind.
- Cars: Interest rates on car loans have ticked downward, making a depreciating asset a bit more affordable. Refinancing a vehicle is typically a straightforward process, with few overhead costs. You can also restructure your auto loan to possibly have more affordable monthly payments.
- Student loans: Refinancing your student loans from public to private student loans could make great financial sense. There are typically no fees involved when refinancing student loans. However, you will permanently lose any potential forgiveness offered by the government.
3. Contribute To Investment Accounts
As the new year comes along, there are new investment limits on retirement accounts. These accounts are a great resource to build wealth. Here are a few popular accounts, and the updated limits for 2026:
|
Account |
2026 Limits |
Stipulation for the account |
| Health Savings Account (HSA) | Self-Only Coverage: $4,400
Family Coverage: $8,750 Age 55+ Catch-up: +$1,000 (unchanged from 2025) |
You must have a qualifying high deductible health plan. For your plan to be HSA-eligible, it must be:
Minimum Deductible: At least $1,650 (self-only) or $3,300 (family). Maximum Out-of-Pocket: No more than $8,300 (self-only) or $16,600 (family) for in-network care (includes deductibles, copays, coinsurance) |
| 401(k) | 2026 401(k) employee contribution limit: $24,500 (under 50)
Age 50+ catch-up: additional $8,000; ages 60–63 may contribute up to $35,750 Total employee + employer contribution limit: $72,000 Higher earners’ catch-up contributions must be Roth (after-tax) starting 2026 |
You must have an employer sponsoring a 401(k). If you’re unsure if your employer offers one, be sure to contact your HR department.
If you’re self-employed, consider opening a solo 401(k). |
| Individual Retirement Account (IRA) | Under age 50: $7,500 (up from $7,000 in 2025)
Age 50 and older: additional $1,100 catch‑up — total of $8,600 possible for 50+ savers |
Income limits may apply to you. |
For those who have kids between Jan. 1, 2025, and Dec. 31, 2028, there is an extra financial incentive from the government to invest. “Trump accounts” are now able to be opened and funded with $1,000, courtesy of a significant donation from the Dell family.
These accounts are supposed to open in 2026. You can sign up for updates here.
4. Ensure Your Medical Care Is Taken Care Of
Medical costs only continue to rise, and your premiums will likely reflect that. Employers are set to see the biggest jump in group premiums in 15 years, leaving employees to take on more of the burden.
One 2024 survey shows the average person spent $2,456 during the year on healthcare-related costs, amounting to approximately $204/month. This can be a significant burden for single people and families alike. Not planning for those expenses could quickly lead to mounting medical debt, which is currently the top reason for Americans filing bankruptcy.
Here are a few ways to budget for potential medical costs:
- Utilize either an HSA or an FSA: Both of these accounts can help you set money aside for medical expenses, as well as potentially reduce your taxable income.
- Set aside money in a high-yield savings account: This account is where you can put funds and earn interest over time. While interest rates have come down a bit, it’s better than keeping the money in a checking or regular savings account, earning little to no interest.
This financial checklist highlights seven practical money moves to help you reduce debt, save more, and plan ahead for the year.
5. Consider Forward-Looking Conversations
This one can be the most emotionally taxing, but it can prevent significant heartache in the future.
We recently covered the cost of funerals and funeral debt, underscoring the need for important conversations with your family about money, inheritance, and financial responsibilities. A will or trust could help outline those plans after your passing.
It’s not a fun conversation, but making future arrangements can make the grieving process easier for those you leave behind.
Your End Goal for 2026, Realized
These several tasks can seem overwhelming. It’s important to take these steps slowly, but what’s helped me is to envision what the end goal is. From there, create the steps to get there.
Most importantly: you can do it. Whatever financial goal you have in mind, you can accomplish it with simple planning and action.
