Another year has gone by, and you might still feel a bit stuck financially. Whether you’ve been slacking or just didn’t know where to start, the new year is a chance to implement some effective financial practices. Here are a few straightforward ways to begin.
1. Maximize Your Retirement Savings
Setting aside money for retirement, especially with compound interest, is a smart financial move. If your employer offers a match for your 401(k) contributions, you should take full advantage of that—it’s essentially free money.
In 2026, contribution limits will see an increase. This includes up to $24,500 for 401(k)s, $72,000 for employee and employer contributions, and $7,500 for traditional and Roth IRAs.
If you’re over 50, look into making additional contributions, and if you’re between 60 and 63, that additional amount might be even larger.
If you run your own business, talking to your accountant about setting up a defined contribution or defined benefit plan could allow you to save significantly, potentially into six figures, tax-deferred.
2. Organize Your Subscriptions
Every company seems eager to offer subscription services these days, but you don’t have to say yes to all of them.
Take a look at your credit card and bank statements from the last year. Are there subscriptions you rarely use? Cutting those could help.
Consider trimming down on streaming services and maybe switch to free versions that have ads. Even saving $20 to $100 each month can add up meaningfully over the year.
3. Renegotiate Bills
Service providers often raise their prices, but they also don’t want to lose customers. Call your cable, internet, cell phone, and insurance providers to see if they can offer you a better rate, especially if you’re contemplating switching providers. A few phone calls might save you hundreds, or even thousands, of dollars.
4. Assess Your Family’s Financial Situation
The start of a new year is an ideal time to review your family’s financial circumstances. Do your family members understand your wishes regarding aging, medical emergencies, or even after your passing? If not, compiling essential information into a legacy planning kit could be beneficial.
Ensure important documents like wills or powers of attorney are in order. If beneficiaries aren’t up to date, make those changes as they override what’s in the will.
Store this information in a place accessible to those who need it. If you’re unsure how to begin, resources are available that can guide you through the process.
5. Consult a Financial Planner
If you have goals like buying a home or planning for retirement, working with a financial planner can be very useful. If you don’t yet have one, consider meeting with a few to evaluate which might be the best fit for you.
6. Think About Hedging Your Portfolio
Given current government spending and fiscal challenges, it might be wise to consider hedging your portfolio. If you’re interested in assets like precious metals as a hedge against inflation, a dollar-cost averaging strategy could be effective. This means purchasing at regular intervals to average out your costs over time, rather than trying to pinpoint the perfect timing in the market.
When looking for metals or alternative hedging assets, ensure you find options with reasonable markups, and buy from reputable sources. Again, consulting a financial advisor can help clarify these decisions.
Taking straightforward, sensible actions this year can help transform your financial situation by 2026 into something you’re proud of, rather than something that stresses you out.
