Your mind is probably on the upcoming holidays. Your finances should be on 2026 and your goals for it. This is the best time to develop a clear understanding of where you are money-wise today and where you want to be a year from now.
These six steps can make next year the most financially and emotionally rewarding of your life. Do them to get a sense of where you are, where you can go, and how you will get there:
Organize your credit union and credit card statements for this year and look for patterns: On what did you consistently overspend? Where did you underspend in a good way? And which purchases do you think, in hindsight, were not worth it? Be honest with yourself as you consider which spending behaviors you want to continue, which ones need to stop, and anything else that needs to change before you set goals for 2026. Tropical Financial Credit Union can help with this handy budgeting guide.
Make two quick lists: money wins and money lessons. Wins would include paying off a credit card balance, increasing your savings account balance, or sticking to a spending-cut promise you made to yourself. Lessons could include impulse shopping during sales, spending more than you thought on eating out, and adding online subscriptions to services you don’t need or rarely use.
Take an annual checkup of your financial health. First, list your monthly take-home income, fixed expenses for necessities like housing, insurance, and minimum debt payments, and fluctuating expenses like groceries, dining out, and entertainment. Second, list all your debt obligations and their corresponding interest rates, along with savings and investment accounts. Tropical Financial can help you organize both categories.
From income, subtract expenses from essential bills to determine whether more money is coming in than going out, or vice versa. That figure will help you set 2026 goals, such as buying a house or a car. If you’re spending more than you’re making, trim spending or increase income, or effect a combination of the two.
Before you plan big moves, check your emergency fund balance. Ask yourself, “If I had an unexpected expense such as a major surgery or lost my job, could I pay all my bills for the next three to six months? After adding up your monthly essential expenses, multiply that figure by 3 or 6 and compare it to your financial reserves. If they’re too low, it’s time to tighten the belt until you have a secure balance.
If you dipped into savings this year or didn’t set aside much money, make starting an emergency fund one of your first 2026 priorities. Even a one-month cushion in a separate, easy-to-access account can reduce your stress and give you the confidence to pursue other goals. Tropical Financial offers a savings club account and a higher-rate money market account that you can tie to your credit union checking account for automatic monthly transfers.
It may not be pleasant, but learning how deep in debt you are is the most significant first step to a more financially rewarding 2026. List every credit card balance, even the ones on which you owe zero dollars, and each of your installment loans with the minimum monthly payment and, most importantly, the interest rate. Learn about types of credit at Tropical Financial’s KOFE website.
As you comb through monthly statements and loan documents, reflect on the emotional burden your debts have created: Did they hurt your lifestyle? Do you feel discouraged that you could not advance toward your financial goals? Were the payments suffocating? Your answers will help you decide whether to focus in 2026 on debt reduction or take a more balanced approach that includes saving and investing.
Armed with this information, set no more than three goals. They can be covering emergency expenses totaling $5,000 from savings, halving credit card debt, or depositing the maximum contribution into a tax-advantaged retirement account.
Then, put those goals on a realistic timeline. They may be as modest as transferring $500 a month from checking to the emergency savings account, or paying down the balance on the highest-interest-rate card by an extra $250 each month so that the balance is zero by July 1. Use a planner or other smartphone app to measure your progress.
Whether this year was good or bad financially, 2026 can be better once you decide the source of the money for each goal. That may mean cutting back on discretionary purchases, especially impulse buys, refinancing debts, or looking for ways to boost income. Tropical Financial offers highly competitive rates on used-car loans that can slash your monthly payment.
To stay on track, review your account balances monthly and make changes as needed. A financial plan is not something you set and forget. Consistently monitor your financial habits and give yourself a pat on the back now and then as you steadfastly move closer to your 2026 goals.