At a time when it’s traditional to haul out another round of New Year’s resolutions regarding health and fitness, how about focusing on your financial well-being this January? Here are a few simple steps to help you reset your financial compass as we start the new year.
The holidays often bring extra spending, so January is the time to recalibrate your financial goals. Start by reviewing last year’s progress: Did you hit your savings targets? Pay down debt? If not, adjust your goals. For example, you may want to increase your emergency fund by a certain amount between now and December, or max out your IRA contributions by year-end.
Your budget is the backbone of your financial health, so update it to reflect any changes to your income, expenses or lifestyle. Automate your savings and bill payments to reduce stress and keep you on track. An easy tip to cut expenses is to review subscriptions and recurring charges, then cancel what you don’t use.
When did you last update your beneficiary designations? If these aren’t correctly documented, federal or state law may end up deciding who gets what. Check your beneficiaries on wills, life insurance policies, annuities, IRAs, 401(k)s, qualified plans and anything else that might affect your heirs. If you’ve named a trust, have any relevant tax laws changed? Have you provided for the possibility that your primary beneficiary may die before you? Does your plan address the simultaneous death of you and your spouse? An estate attorney can help walk you through these various scenarios.
Everyone should have an emergency fund of cash to cover three to six months of expenses. If you don’t, make this a priority for 2026. Having easily available cash can reduce your stress if you happen to lose your job or need to repair your car or replace your refrigerator.
Take time now to evaluate your retirement plan—the types of securities you hold, your expected cash flows, your contingency plans, your assumed rate of return, inflation rates and how long you’re planning for. What changes are needed, given your current lifestyle and the stock market environment?
Develop a charitable strategy that will also reduce your tax liability. For example, consider whether it would make sense to donate low-basis stocks in lieu of cash, or learn about establishing a donor-advised fund to take an up-front deduction for contributions made over the next several years.
This is a great time to digitize your recordkeeping. Consider going paperless and centralizing important files in one place. Your financial advisor may have access to secure storage tools that can help.
As the calendar flips to 2026, remember that change doesn’t have to be dramatic to be meaningful. Small, consistent steps can lead to big results. Set your intentions now and follow this plan throughout the year so you grow not just your finances but also your confidence, clarity and peace of mind.
Sean Goodrich is a CFP® with Goodrich Wealth Planning.
He can be reached at sean.goodrich@raymondjames.com
