Realigning your money in 2026: How to pay off debt and build savings

"The start of a new year usually brings new motivation to achieve goals like eating healthier or finally cleaning your basement. Many resolutions also focus on financial goals, such as paying off credit card debt, saving for a new house, or simply getting more educated about money. "New Year's is a really good time to review and realign your financial goals overall," said Erica Grundza, certified financial planner at Betterment, an investing and savings app."

"When building your goals for 2026, Grundza recommends focusing less on the past and more on an optimistic, yet realistic, vision for the future. She recommends that you focus on reestablishing the "why" behind your approach to money and how you want to make it work for your life. This can be as simple as saving $10 each week in a savings account, or a bigger goal like saving to buy a house in the coming years. It's all about your own journey."

"Resolutions can easily turn into unattainable goals that feel more like a dream, said MarieYolaine Toms, a coach and founder of Focused Fire, a financial coaching company. To avoid setting unrealistic expectations, Toms follows a "no resolutions" mindset and instead focuses on making an actionable plan. "What I say every year is that I am not making resolutions, I'm making plans that can be tracked forward, traced back, and tweaked until completion," Toms said."

The start of a new year prompts many people to set financial goals such as paying off credit card debt, saving for a house, or improving money knowledge. Financial planning should focus on an optimistic yet realistic future vision and reestablish the personal why behind money choices. Small, regular actions—like saving $10 or $25 each week—build progress toward larger goals. Avoid unattainable resolutions by creating actionable, trackable plans that can be traced back and adjusted. Checking credit reports with the three bureaus can inform attainable steps. Financial progress is a personal, long-term journey.

Read at Fast Company