Your 2026 Financial Reset

Most people would probably agree that a poor financial situation impacts their mental well-being. With 2026 approaching quickly, do you have a financial plan for the new year?

The new year is a perfect time to step back and reanalyze your finances. You might think that setting a strict budget is all you need to do, but being financially successful comes with more responsibilities.

Pay attention to your expenses.

Start by focusing on your spending for a week. It’s easiest to look at your bank statements and credit card bills to spot patterns. There might be a subscription that you never use, or you might be spending more money in one or two categories than you realized.

When you understand where all of your money is actually going, it’s easier to make more realistic adjustments to your spending habits.

Use automation as much as possible.

It’s always a great idea to transfer part of your paycheck into your savings account, but remembering to do it can be a challenge. Avoid this issue by setting up automatic transfers on payday.

You can also avoid late fees on bills by setting up autopay, so it will automatically pay your bills without having to lift a finger.

This trick works because it removes temptation and decision fatigue – two major barriers to saving consistently. Even a small automatic transfer adds up over time. Think of it as paying your future self.

Build an emergency savings.

Setting aside money for an emergency fund can be really tricky at times. A full emergency fund should be three to six months of expenses, which can be a lot of money for some people.

It’s important to remind yourself that you don’t need to have all of your emergency fund ready at once. You can start by saving your money slowly. Even by setting aside $20 a week, you’ll be surprised how quickly that money adds up. Keep this money in a separate account from anything else to ensure that it doesn’t get mixed in with your spending money.

Your future self will thank you for having this money saved if your car breaks down or if you lose your job.

Don’t forget to set aside money for fun.

Your budget shouldn't just be about survival. Planning ahead for things that bring you happiness, like a weekend getaway or even a nice meal out, keeps your financial plan sustainable.

When you budget for happiness and fun activities, you’re less likely to fall into guilt spending or burnout later.

Keep track of your credit score and debt picture.

It’s much easier to ignore your debt than to face it head-on, but you can’t get rid of your debt by ignoring it.

Focus on paying off the smallest balance first to build momentum, or tackle the highest-interest debt first to save money over time.

Don’t be afraid to ask for help.

It’s okay if you don’t have all of the answers to feel financially confident.

Education First Credit Union is here to answer any financial questions you have. We have also partnered with GreenPath to provide our members with free financial counseling and a debt management program designed to lower interest rates, reduce payments, and reduce your stress in the coming year.