After the calendar turns, many people look for a fresh start on their finances—whether that means paying down debt, saving for a home, or building a cushion for unexpected bills. Financial planner Erica Grundza told the Associated Press that New Year’s is a good time to review and realign financial goals, arguing that people can move more effectively by reconnecting with the reasons behind their approach to money. She said she recommends focusing less on the past and more on an optimistic, yet realistic, vision for what people want their money to do in their lives in the year ahead.
Grundza’s suggestions were echoed by financial coaching founder MarieYolaine Toms, who told AP that resolutions can become goals that are “more like a dream” if people do not build in the day-to-day structure required to follow through. Toms said she takes a “no resolutions” mindset and instead makes plans that can be tracked forward, traced back, and tweaked until completion. As an example, she recently encouraged clients to check their credit report with the three credit bureaus and, based on the reports, make an attainable plan that includes starting or building a savings account.
Toms also emphasized the practical steps involved in turning goals into a budget. She said people should find a budgeting technique that works for them, including approaches such as the commonly used 50/30/20 plan or other styles. When people are building a budget for the first time, she pointed to expert recommendations to help guide those early decisions.
For one AP source, those planning steps were shaped by job loss and the need to prioritize debt. Rachel Pelovitz, 33, said she had to take a closer look at her finances after losing her job as a magazine editor in September, and she described acquiring significant debt over the past few years during her husband’s year-and-a-half-long unemployment. Pelovitz said she and her husband chose to sell their house and work with a debt consolidation organization, rather than taking on additional debt, and she described her goal for 2026 as paying off half of her credit card debt while starting to invest moderately.
Other households’ plans focused on reining in spending to create room for long-term goals. Jenni Lee, 27, said she is planning to be stricter about building her savings account after overspending in the previous six months. Lee said her long-term goal is to buy a house and that she wants to cut unnecessary spending on items like clothing and eating out, describing how social media “microtrends” can influence shopping decisions in ways that can lead to overspending.
In Worcester, Massachusetts, Melanie Duarte said she is managing multiple financial priorities at once, including paying off student loans and credit card debt while building an emergency fund. Duarte told AP she made sure the emergency fund “was something as small as like $50” included in her budget, saying she wanted to keep contributing so the money could “eventually multipl[y].” She also described how her relationship with money changed after she opened her own marketing agency, saying her family did not speak openly about finances when she was growing up.
Even for people who have decided to focus on saving and debt reduction, AP reported that balancing near-term enjoyment with long-term stability remained part of the goal-setting process. Tiana Stewart, 26 and based in Maryland, said that after the death of her grandfather shortly after his retirement, she felt he did not get to enjoy the fruits of his labor. Stewart told AP that while saving for retirement is important, she also wants to enjoy her life and the money she is working for now, and as she looks ahead she said she wants to focus on paying off debt, saving and investing—seeking what she described as a healthy balance between present enjoyment and future preparation.
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate