As we look ahead to the New Year, nearly half of Americans say they are feeling financially pressured. Forty-eight percent say they are more stressed at the end of this year than they were at the start of the year. That’s up from 43% last year, according to a new study from the Allianz Center for the Future of Retirement.
It’s hard to manage those feelings, so instead of sitting with the anxiety, it may be helpful to exert some control over your situation. Perhaps this is the year that you create a few financial resolutions.
According to Fidelity Investments’ 2026 New Year’s Financial Resolutions study, 64% of respondents are considering a financial resolution for 2026, an 8 percentage point increase from a year ago.
How can you be one of the few who actually stick to a resolution?
The key with any financial goal is to make it specific, measurable, achievable, relevant and timebound, in other words, “SMART.”
And let’s add a basic, annoying fact to the mix: Every financial goal requires you to understand how much money is coming in and going out of your household.
So maybe the most important resolution should be to track where your money is going for 90 days. Most banks offer ways to do so, and many apps have free versions, such as PocketGuard, GoodBudget and Honeydue. The latter is geared toward couples. Regardless of method, the goal is to identify the amount of money you can allocate toward your specific goal.
With that information in hand, avoid a vague resolution such as “save more,” and instead consider a better alternative, such as “build up my emergency reserves so that I can cover six to 12 months of living expenses. Then, establish an automatic transfer of a set amount of money from your checking account to build this fund.
You should also use liquid, available accounts to fund any large expenses that will occur over the next 12 months, such as a car purchase or a home down payment. Although interest rates have come down over the past year, it is worthwhile to spend some time to find high-yield savings accounts, money market funds and CDs, some of which are yielding 3% to 4%.
For those who are still struggling to pay down debt, ditch the “get out of debt” resolution, redirect those automatic payments to accelerate your debt pay-down, chipping away at the highest interest debt first and working your way down. Don’t forget to include those student loans as part of your debt pay-down strategy.
As you beef up your savings and pay down debt, you also need to exert some energy on long-term goals, like retirement. Try to contribute at least to your employer’s match, if you have one, or establish an automatic transfer into an IRA or Roth IRA with one of the financial institutions that offer low-cost mutual or exchange-traded funds.
The 2026 limit for work-based retirement plans (401(k), 403(b), 457) has increased to $24,500 and the catch-up contribution limit for employees aged 50 and over will rise to $8,000.
One extra benefit: Under a change made in SECURE Act 2.0, there is a higher catch-up contribution for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit is $11,250 instead of $8,000. The IRA limit for both Roth and traditional will be $7,500, and the over-50 catch-up is $1,100.
Pick one or two resolutions that will have the biggest impact on your financial situation and focus on those first. Once they become habits, you can layer on additional goals. The key is progress, not perfection.
Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com.
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