Crush Your Financial Resolutions: 7 Financial Goals to Tackle in 2026

Exercise more. Eat healthier. Reduce stress. Save More. You might have made these common New Year’s resolutions before. Now is the perfect time to set intentions for the year ahead, but (as we have all learned), fundamental to any resolution is sticking to it.

While many financial resolutions fade quickly, goals grounded in actionable steps can create lasting benefits. This year, let’s do things differently. Start the year off right and build momentum throughout the year with these tips from The Focus Federal Credit Union.

1. Set a Realistic Budget (and Stick to It)

A budget is the backbone of effective money management. Get started by understanding your spending habits. Pull credit card and bank statements to start comparing your outgoing cash to your income, and look back at where you spent money over the past year. 

Only 36% of people have a written financial plan, but among those who do, 96% feel confident they will reach their financial goals. The New Year is an excellent opportunity to start or revise your budget. Do you need to prioritize any goals? Do you want to build an emergency fund, pay off credit card debt, or invest in your future? A budget can serve as a roadmap to achieving your goal.

To create a budget:

• Calculate Your Income. Income is any money coming in during the month or year. Include paychecks, side hustles, or any other income.
• List Expenses. List your fixed and variable expenses. Fixed expenses stay the same month after month: rent, car payment, cell phone bill, and insurance. Variable dollars change month to month and depend on how much you spend on eating out, entertainment, and groceries.
• Subtract Expenses from Income. Knowing the difference between your income and expenses will help you understand where you need to adjust and will give you an idea about how to approach 2026. If your expenses exceed your income, look for ways to cut back, especially on entertainment and meals out.
• Revisit Your Budget Monthly. Regularly review your finances to stay accountable and avoid straying. As you do this, you will begin to have a more realistic view of what you spend each month in different categories. While your budget might remain consistent in most months, there may be specific changes. Use a spreadsheet or budgeting app to keep an eye on your money coming in and going out. TFFCU offers online banking tools to help monitor spending.

2. Build Your Emergency Fund

More than 37% of people can’t pay a $400 unexpected expense without turning to a credit card or borrowing from a friend. An emergency fund is money in an account set aside for large, unanticipated expenses, such as home or car repairs or medical bills. It can also help you during a temporary loss of income or an extended illness.  

A general rule of thumb is that an emergency fund should contain three to six months’ worth of expenses. If you’re starting from scratch, every bit helps. Aim toward a $500 cushion. To start an emergency fund, set up a separate savings account and deposit funds directly into it with every paycheck or once a month. Consider a savings account that also earns interest, like Focus Federal’s Club Accounts.

3. Pay Down High-Interest Debt

Paying off debt can save on interest, free up funds for other things, and improve your credit score over time. When deciding what to prioritize first, consider the debt type, interest rate, outstanding balance, and impact on your credit score.

Decide which option for paying down debt works for you. There’s no one-size-fits-all solution:

• Snowball Method. Focus on eliminating your smallest debt first while continuing to make the minimum payments on your other obligations. With the snowball method, you gain a sense of accomplishment, and it can boost your motivation, especially as you close out accounts. But since you aren’t focused on interest rates, you may end up paying more in interest.
• Avalanche Method. The avalanche method prioritizes paying down debts with the highest interest rates first. This method may take longer, but it may save more money in the long run by reducing interest payments. Compare this method to the snowball method to see which might work best for your situation.
• Debt Consolidation. Debt consolidation combines multiple debts into a single loan. You can simplify your payments, but ideally, you can lower your interest rate as well.
• Home Equity Line of Credit (HELOC). If you own your home, another option is HELOC. With a HELOC, you borrow against your home’s equity. Every lender has its own borrowing limit; you can usually borrow up to 85% of your equity.

4. Improve Your Credit Score

Your credit score is a representation of your creditworthiness. It is one of the most influential factors in determining your eligibility for a car or home loan, and it can even factor into whether you can rent an apartment. The two main credit scoring systems used are FICO® Score and VantageScore®. Scores range from 300 to 850 points; the higher the number, the more likely creditors are to lend to you.

You can get a free credit report each year from Equifax, Experian, and TransUnion. You can request a report by:

• visiting AnnualCreditReport.com,
• calling 1-877-322-8228,
• or mailing a request to the Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281.

Ways to improve your credit score include:

• Check for Errors. Review credit reports for errors and dispute any inaccuracies.
• Limit New Accounts. Every time you apply for credit, lenders perform a hard inquiry. While a single hard inquiry typically has a temporary impact on your score, multiple inquiries can raise a red flag.
• Pay Bills on Time. Aim to pay your bills on or before the due date. Set automatic payments for an easy way to pay bills on time.
• Keep Balances Low. Credit utilization is the amount of credit you’re using compared to your total available limit. Aim to keep your ratio below 30%. 

5. Save for a Specific Goal

Plan to take a vacation, buy a car, or put on a new roof this year? Set a S.M.A.R.T. goal. Instead of vague financial resolution, be Specific, Measurable, Achievable, Relevant, and Time-bound.

Your goal is to have $1,000 in savings by year-end for holiday expenses. Now let’s make it a S.M.A.R.T goal:

• Specific: Save $1,000 for holiday gifts.
• Measurable: Save $1,000 by setting aside $100 per month for 10 months.
• Achievable: To save $100 per month, you will cut one streaming service and pack lunch twice per week.
• Relevant: to keep these funds secure and help avoid the temptation to spend them on something else, you will set up a club account with TFFCU.
• Time-Bound: You will start in January, setting aside $100 per month and continuing through October. 

6. Review (or Create) a Retirement Plan

Are you on track for retirement? The start of a new year is a good time to review your current contributions and adjust as needed. Free online retirement planning tools can help you estimate how much you need to save. The sooner you start, the better.

If your work offers a 401(k) or 403(b) plan, don’t overlook employer match programs, which can significantly boost your retirement savings. If you don’t have an IRA, now is the time to start contributing regularly. The contribution limit for the 2025 tax year is $7,000 if you’re under 50. If you’re 50 or older, you can contribute more with higher annual limits via a catch-up contribution, allowing an additional $1,000.

Looking at a number like $7,000 or $8,000 can be discouraging. It’s helpful to break it down into monthly commitments. Reaching the limit doesn’t have to be the goal at the beginning; your goal can be to contribute consistently. Set up automatic withdrawals into an IRA or savings account to make the process seamless.

7. Get Professional Help

From understanding retirement account options to learning about debt reduction strategies, increasing your financial literacy can empower you to make better decisions. 

Less than 50% of people are considered financially literate. Commit to ongoing education, take a financial education course, subscribe to newsletters, or read blogs to expand your knowledge. 

Let TFFCU Help You Reach Your Goals in 2026

Financial goals aren’t about perfection; they’re about progress. Plan to start small, stay consistent, and don’t be afraid to ask for help. Ready to hit your financial resolutions in 2026? Let TFFCU be part of your journey. Contact us or stop by a branch to get started.

Aiden Ferguson

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