Experts say you should make these 5 financial moves to start 2026

New year, new money habits.

If that’s among your goals for 2026, then there’s a wealth of information available. But knowing which tips and strategies are the most effective requires a level of financial literacy that many Americans just don’t have. A recent report from the National Financial Education Commission found that the average person loses around $1,000 a year because of poor financial education.

The Independent has asked personal finance experts for their top money moves to get you off to a great start.

A 2025 study from financial firm Empower found that Americans, on average, have a savings balance of just $500, and a third don’t have an emergency fund at all.

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Certified financial planner Julian B. Morris, principal at Concierge Wealth Management, suggests one simple trick to help protect you from future, unpredictable financial emergencies.

“The first thing I’m thinking of is automating your savings,” he said in an email to The Independent. “When we can automate things, it turns progress into the default, whether that's an emergency fund, retirement, or building a general investment account.”

This money move can apply to most consumers, Morris said, because it “doesn’t rely on timing the market, picking the right investment, [or] overhauling your lifestyle.”

Simple habits tend to make big impacts on the average person’s finances, and, arguably, no habit is more influential than a budget. Knowing what you earn and what you spend is critical to controlling your finances and building long-term wealth.

But if you don’t have a budget, where do you start? Do a deep dive on your spending, said personal finance expert Andrea Woroch.

“When working toward a financial goal, it's important to figure out where your money is going and create a budget to stop wasteful spending,” Woroch told The Independent via email. “List out each recurring expense and take an average spend for fluctuating categories, as this will give you a budget baseline. Then you can figure out where, and how much, to cut back.”

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If you already have a budget and want to adjust it to include any job-related raises or bonuses, now is a good time to revisit, said Mark Fowler, director of retirement education and small business 401(k) firm, Human Interest.

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“The start of the New Year coincides with performance review, bonus, and/or pay raise season,” Fowler told The Independent in an email. “A practical thing is to re-evaluate your household budget. You know your savings/tax/personal budget rate, and now you can anticipate how your salary may grow for the new year.”

Once you have your revised budget in place, take a moment to look ahead to what you want to accomplish with your finances.

“This is an ideal time to take a step back and assess your long-term financial situation,” Fowler said. “Ask yourself: ‘Am I on track for where I want to be?’ If not, then consider which steps might improve the outlook.”

A 2025 study from Pew Research Center found that only around half of Americans believe they know a “great deal” or “fair amount” about personal finances.

Those figures, as well as findings from other studies, point to a financial knowledge gap that Casey Brueske, a community education development specialist at PenAir Credit Union, explains that you can solve by educating yourself.

“Financial confidence starts with education - this is the best piece of advice we can give,” Brueske told The Independent in an email.

Hiring a financial advisor is one way to improve your understanding of financial matters.

“Asking questions early and often of a trusted advisor can save you money and stress down the road,” she said. “Financial confidence grows when you understand your options. Seeking advice from certified financial coaches can be the very thing that sets you up for success in 2026 and beyond.”

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If you start to feel overwhelmed by all the information you find about smart money moves, remember that your goal is to take small steps toward a sound financial knowledge base.

“You don't have to know everything to make smart financial choices,” she added.

Homeowners with a mortgage should consider a new strategy for paying their home loan in 2026, said Angie Hoger, a realtor with Berkshire Hathaway HomeServices Florida Network Realty.

“I would…emphasize the importance of budgeting wisely to make extra payments whenever possible on mortgages,” Hoger said in an email to The Independent. “Not only will it cut the length of time of the mortgage term, but it will reduce the amount of interest paid. Even a few extra dollars a month make a difference.”

How much of a difference can it make? You can trim more than four years off your loan term by paying an extra $100 a month over the life of a $200,000, 30-year fixed-rate mortgage with a 4 percent interest rate, according to Wells Fargo. Additionally, those extra payments will cut down the amount of interest you pay by $26,500.

If you haven’t pored over your credit report to find inconsistencies and errors, right now is a great time to do it, said Travis Vayssie, founder of fintech lender SwipeSolutions.

“Pull your credit reports from all three bureaus,” Vayssie said, referring to Experian, Equifax, and TransUnion. “Not [just] your score - your actual reports. Look for errors, old accounts you forgot about, stuff that shouldn't be there. I see people all the time who have no idea there's a collections account dragging them down from three years ago.”

Filing a dispute over incorrect information has the potential to boost your credit score and provide considerable savings on any loans you take out this year.

“One dispute that removes an incorrect late payment can bump your score 30 [to] 50 points,” he said in an email to The Independent. “That's the difference between getting approved at 12% [versus] 22% on your next loan or [credit] card.”