Year-End Money Moves to Start 2026 Strong

Some Personal Finance Tips to Close This Year and Kickstart the New Year

As another year wraps up, and we’ve attended the last concert of the year (Trans-siberian Orchestra is Metal!) We are all also getting ready to celebrate the holidays and get together with friends and family for food, fun, and togetherness. But the end of the year isn’t just about eggnog and awkward office parties. It’s also a perfect time to review your finances, see how things have been going with your money, and get ready for a strong start to 2026.

Look, personal finance isn’t just about saving money. It’s also about planning, setting goals, and making smart decisions that will help you in the long run. I know it’s hard it can be to think ahead, sometimes years or decades in the future! Whether you want to save more, pay off debt, or invest in the future, here are some financial moves we can make as 2025 comes to a close and the mic drops on the gig that was 2025. Let’s do what we can to set ourselves up for success in the new year.

Review Your Financial Goals

The end of the year is the perfect time to check in and see how you’ve done with your financial goals. How did your earning go this year? Did you get a raise or earn bonuses or commissions? What are you doing with that extra cash? (are you blowing it on a pointy guitar or more band merch?!) Did you save as much as you planned? Maybe you used it to pay down debt. Did you continue to invest wisely?

Here are some action steps to help you out:

• Track Your Progress: Compare your actual financial performance against your goals for savings, paying down debt, and investments. Were you saving for that vacation, that music festival, or that pointy guitar? Let’s track our progress to get there.

• Adjust Your Goals: If you didn’t do as well as you hoped, figure out what went wrong and adjust your goals for next year. If you did better than you thought, think about how you can make them even better. It’s totally okay to modify or adjust our goals along the way.

• Set SMART Goals: For 2026, try making your goals realistic by using SMART goals. By making your financial goals Specific, Measurable, Achievable, Relevant, and Time-bound, it helps you actually achieve them instead of just hoping for the best.

Maximize Tax-Advantaged Contributions

As the year wraps up, this is your last chance to make the most of those tax-advantaged accounts like 401(k)s, IRAs, and Health Savings Accounts (HSAs). These contributions can lower your taxable income and help you build a solid retirement nest egg.

Here are some action steps to help you out:

• 401(k) Contributions: Make sure you’re contributing enough to get the full employer match. Seriously, if you’re not doing this, you’re leaving free money on the table. For 2025, the contribution limit is $23,500, with an extra $7,500 catch-up contribution for those over 50. And if you’re between 60 and 63, you get a super catch-up of $11,250.

• IRA Contributions: Think about maxing out your IRA contributions. For 2025, that’s $7,000, or $8,000 if you’re over 50. Traditional IRAs might also be tax-deductible depending on your income and whether you have a retirement plan at work.

• HSA Contributions: If you have a high-deductible health plan, make the most of your HSA contributions. For 2025, that’s $4,300 for individuals and $8,550 for families. HSAs offer a triple tax advantage that’s pretty sweet. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. If you’re 55 or older, you can throw in an extra $1,000 catch-up contribution.

What is a Health Savings Account (HSA) and Why It Rocks!

Conduct a Year-End Budget Review

Now, let’s talk about budgeting. Take a close look at your spending for the year and see where your money actually went. This will help you make better financial decisions in the future. Trust me, some of you might be shocked when you see how much you spent on DoorDash or coffee runs.

Here are some steps to help you out:

• Analyze Spending Habits: Whether you’re using paper and pen or online tools, apps like YNAB, or spreadsheets like Excel, review your expenses for the year. Look at everything. And I mean everything.

• Identify Savings Opportunities: Look for areas where you overspent and places where you can cut costs next year. For example, if eating out was a big expense (this was definitely mine), try meal planning to save money. Or if you’ve got seventeen streaming services you barely use, maybe it’s time to cut a few.

• Refine Your Budget: Make a budget for 2026 that matches your financial goals and priorities. Be realistic about it. Don’t budget like you’re going to become a different person overnight who never buys coffee or goes out with friends.

Tackle Debt Strategically

If debt has been weighing you down or causing some stress, the end of the year is the perfect time to get serious about paying it off. Paying off debt is one of the best ways to free up cash, increase your net worth, build wealth, and improve your financial health.

Here are some steps to help you out:

• Focus on High-Interest Debt: Prioritize paying off credit card balances and other high-interest loans. You can use the avalanche method, which means tackling the highest-interest debt first. Or you can use the snowball method, which means paying off the smallest balances first for those psychological wins. Pick whichever one will keep you motivated.

• Consolidate Debt: Think about combining high-interest debt into a lower-interest personal loan or balance transfer credit card. Just make sure you’re not going to rack up more debt once you free up those credit cards. Be honest with yourself here.

• Set a Debt Payoff Plan: Make a clear repayment plan for 2026, including specific monthly payment targets. Write it down. Put it somewhere you’ll see it. Make it real.

Snowball vs. Avalanche: Which Debt Payoff Method Rocks Harder?

Review Your Investment Portfolio

Year-end is also a great time to check in on your investment and retirement accounts and make sure your portfolio is still on track with your overall financial goals and risk tolerance. Please discuss with your financial advisor or professional for your specific situation.

Here are some steps to help you out:

• Rebalance Your Portfolio: Over time, market changes can cause your portfolio to drift from its original mix of stocks, bonds, and other assets. Rebalancing brings it back to where it should be. If stocks have had a great year, you might be overweight in equities and need to shift some back to bonds.

• Tax-Loss Harvesting: Maybe a little more advanced, but If you have investments that lost value, consider selling them to offset capital gains from other investments. This can help you reduce your taxable income. Please discuss with your investment, tax, or finance professional to dig into this. Don’t just start selling stuff randomly.

• Diversify Your Portfolio: Spread your investments around to reduce risk. You know what they say, “Don’t put all your eggs in one basket.” Unless you really, really love eggs and baskets, I guess.

Long-Term Investing That Actually Works

Plan for Tax Season

What the F! It’s December! Yeah, I get it, but it will help if get a jump on tax season early. This is an awesome opportunity to save time, stress, and money. Organize your documents and take advantage of last-minute deductions or credits. Future you will thank present you for not scrambling in March.

Here are some steps to help you out:

• Gather Tax Documents: Collect W-2s, 1099s, receipts for deductible expenses, and other important paperwork. Create a folder, either physical or digital, and start putting everything in one place. This beats the alternative of tearing your house apart looking for that one receipt at midnight on April 14th.

• Prepay Deductible Expenses: If you itemize deductions, consider paying property taxes, mortgage interest, or charitable donations before the end of the year to boost your deductions. This strategy can be especially useful if you’re right on the edge of itemizing versus taking the standard deduction.

• Explore Tax Credits: Look into available tax credits, like the Earned Income Tax Credit or Child Tax Credit, to see if you qualify. These are credits, not deductions, which means they directly reduce your tax bill dollar for dollar. That’s the good stuff right there.

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Assess Your Emergency Fund

We’ve talked about this before, but an emergency fund is a really good idea. This is a good time of year to review your needs and make sure you have enough money set aside to cover unexpected expenses like medical bills, car repairs, or that time your water heater decides to die on Christmas Eve.

Here are some steps to help you out:

• Set a Goal: Aim for 3 to 6 months’ worth of living expenses in your emergency fund. If your job is pretty stable and you don’t have a lot of dependents, maybe 3 months is fine. If you’re self-employed or have a family counting on you, shoot for 6 months or even more.

• Automate Savings: Set up automatic transfers to your emergency fund to build it steadily. Even if it’s just $50 or $100 a month, that adds up over time. You won’t miss what you don’t see.

• Top Off If Needed: If you used your emergency fund this year (hey, that’s what it’s there for), make sure to replenish it as part of your 2026 financial plan. This should be a top priority.

Why an Emergency Fund Is A Really Good Idea

Check Your Credit Report

I know some people think you don’t need a credit score. But for most of us, our credit score is kinda like our financial health report. It affects whether you can get loans, what interest rates you can get, if you can get credit cards, and it may even affect if you can get a place to live. So let’s make sure your credit report is in tip-top shape.

Here are some steps to help you out:

• Get Your Free Credit Reports: You’re allowed one free credit report from each of the big three credit bureaus (Equifax, Experian, and TransUnion) every year. You can get them at AnnualCreditReport.com. As a reminder, it can be a good idea to freeze your credit at each of these bureaus as well to protect yourself from identity theft.

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• Check for Errors: If you find any mistakes on your report, don’t hesitate to dispute them with the credit bureau. Errors happen more often than you’d think, and they can hurt your score for no good reason.

• Pay Your Bills on Time: It is really, really important to make sure you pay your bills before their due dates. This will help keep your credit score high. Set up automatic payments if you need to. Whatever it takes.

• Keep Your Credit Card Balances Low: Please try to keep your credit card balances low compared to your available credit limits. This is called your overall credit utilization, and keeping it under 30 percent will help keep your credit score higher.

Remember, the pros say that taking care of your finances is important for your overall well-being. So let’s make sure your credit report is in good shape and that you’re on track to achieve your financial goals.

Demystifying Credit Scores: Your Financial Report Card and Why It Matters

Set Financial Resolutions for the New Year

The start of a new year can be a fun and perfect opportunity to set fresh financial resolutions or goals. Think about some of the things you want to achieve in 2026 and create those actionable steps to get there. But please, try and make them realistic. Nobody actually believes you’re going to pack your lunch every single day and never buy coffee again! Haha not gonna happen!

Here are some tips to help you out:

• Set Financial Resolutions for 2026: The new year is a great time to set new financial goals. Think about what you want to achieve and make a plan to get there. Maybe you want to max out your Roth IRA, or finally pay off that f’n credit card, or save up a down payment for a house.

• Create a Vision Board: Visualize your financial goals, like buying a house or traveling. Make a vision board to help you stay motivated. Put pictures of places you want to visit, things you want to buy (with cash), or even just the words “debt free” in big letters.

• Automate Your Progress: We’ve said this a million times. By setting up automatic savings, bill payments, and investment contributions you’ll stay on track. Automation is your friend. It removes willpower from the equation.

• Celebrate Milestones: Break down your goals into smaller milestones and celebrate your achievements along the way. If your goal is to save $10,000, celebrate when you hit $2,500, $5,000, and $7,500. You’re more likely to stick with it if you acknowledge your progress.

Plan for Big Life Changes

Lastly, if you have any big life changes coming up in 2026, like getting married, getting a divorce, going back to school or completing school, having a baby, or buying a house, it’s a really good idea to start planning now to avoid financial stress in the future.

Here are some tips to help you out:

• Create a Life Events Budget: Outline the costs associated with the event and start saving early. Weddings are expensive. Babies are expensive. Houses are expensive. Don’t let these things sneak up on you.

• Review Your Insurance: Make sure you have the right health, life, and property insurance for your situation. If you’re having a baby or getting married, you’ll need to update your coverage. If you’re buying a house, you’ll need homeowners insurance.

• Update Your Estate Plan: It’s a good time to review and if there are any life events happen like If you get married, have a baby, or anything else big happens, update your will or trust, beneficiaries, and other estate planning stuff. We often don’t like to talk about death. (unless we are singing SLAYER!) I know it’s uncomfortable. But these are important things to get into place while we are of sound mind and body.

Make the Most of Year-End Financial Planning

The end of the year is a great time to take a look at your finances, figure out what you want to do, and make sure you’re ready for 2026. By taking a little time to review your finances, you can make sure you’re taking advantage of all the tax breaks you can, make progress to pay off debt, and set some new realistic goals. This will help you end the year and start the new year strong, and feeling more confident about your money.

Remember, personal finance is a journey, not a race. It takes time. Year after year. So please take your time to build a solid foundation while raising those horns up high! You’ll be well on your way to achieving your financial dreams, whatever they may be.

Rock on, my friends.