Saving money was the most common New Year’s resolution in both 2025 and 2026, yet turning intentions into action remains a challenge. The start of the year—between holiday spending and before tax season—is the ideal moment to take control of your finances. This isn’t about rigid restriction; it’s about clarity and proactive planning.
1. Budgeting: Know Where Your Money Goes
If you already budget, now’s the time to review last year’s spending and refine your financial plan. For those starting out, personal finance apps are invaluable. They go beyond guesswork by analyzing your transaction history across all accounts—credit cards, Venmo, checking, etc.—to categorize your spending accurately.
Apps like Copilot Money and YNAB (both praised by WIRED ) automate this process, warning you when you approach spending limits in categories like dining or entertainment. This allows for real-time adjustments before overspending. Quicken Simplifi offers similar functionality at a lower price.
2. Maximize Your IRA Contributions
Maximizing your annual IRA contribution early ensures you benefit fully from compounding interest. For 2026, the IRS limit is $7,500 (under 50) or $8,600 (50+). These limits may decrease based on income.
If you can’t contribute the maximum now, plan to do so later. You still have until the tax filing deadline (typically April 15th) to contribute up to $7,000 (under 50) or $8,000 (50+) for the previous year.
3. Re-Evaluate Retirement and Savings Plans
Don’t set-and-forget your retirement savings. Economic shifts demand regular review. Employer-sponsored plans often offer tools to guide adjustments based on income, retirement age, and risk tolerance.
What worked at 28 may not align with your needs at 45. Annual check-ins keep you on track. Consider all accounts, including 529 plans for education savings.
4. Monitor Your Credit Report: Protect Your Identity
A credit report is a record of your financial activity: accounts opened and closed, balances, payment history, and any defaults. Checking it regularly is a security measure as much as a financial one.
Fraudulent activity appears on your report, and early detection can prevent significant debt. Organizations use your credit report for loans, jobs, leases, and insurance. You can access free weekly reports from AnnualCreditReport.com (Equifax, Experian, TransUnion).
For maximum protection, consider a credit freeze, which prevents lenders from accessing your report. This blocks new fraudulent accounts, but also prevents you from opening legitimate credit until the freeze is lifted.
5. Understand Your Credit Score
Your credit score (separate from the report, but derived from it) reflects your creditworthiness. Higher scores mean better loan terms.
Tools like WalletHub provide scores, summaries, and simulations to predict how actions like late payments or debt payoff affect your rating. This is especially useful for young adults building credit or those aiming for specific financial goals (mortgages, business loans). While different scoring models exist, discrepancies are usually minor.
6. Verify Your Social Security Statement
Review your Social Security statement annually at SSA.gov to ensure accuracy. This statement reflects your earnings history, which determines future benefits. Download and check reported income from tax returns; this impacts your estimated payouts at various retirement ages. Deferring collection increases those payouts.
A proactive financial checkup isn’t about restriction; it’s about empowerment. By taking these steps at the start of each year, you position yourself for long-term financial stability.
