How to build an emergency fund, pay off debt and make a plan for your money in 2026

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 focusing on reestablishing the “why” behind your approach to money and how you want to make it work for your life.

Here’s inspiration for your own financial resolutions.

Making achievable plans

Resolutions can easily turn into unattainable goals that feel more like a dream, said MarieYolaine Toms, 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.

Toms encourages clients to check their credit report with the three credit bureaus and, based on the reports, make an attainable plan to start a savings account. For example, adding $25 to their savings account every week.

Whether you’re trying to pay off debt or save for a vacation abroad, the first step towards making a plan can be creating a budget. And it’s best to find a technique that works for you, whether it’s the classic 50/30/20 plan or another budgeting style.

Building a savings account

For Chicago resident Jenni Lee, 27, this is going to be the year when she gets strict about building her savings account. While Lee considers herself generally good with money, over the last six months she has overspent and wants to rein it in. The long-term goal for her savings journey is for Lee to buy a house.

“I’m now in my late 20s. I’m starting to really think about where I pinch now so it won’t hurt later when I finally decide to purchase and own a place,” Lee, a tech worker and lifestyle TikTok creator, said.

As she saves for her future home and possibly a trip to South Korea, Lee wants to cut unnecessary spending on clothing and eating out.

Taking a value-based spending approach can help you decide if you should participate in a trend you see online, Erika Rasure, chief financial wellness adviser at Beyond Finance, said.

Finances are closely tied to emotions, and they can evoke negative feelings such as shame or guilt. But reframing them as an act of self-care can help you spend mindfully, Rasure said.

“It can help you create boundaries around what you value spending money on, helps you choose intentionally and it feels more like freedom instead of restriction,″ she said.

Building an emergency fund

If you're in a position to do so, having multiple financial goals can be a great way to speed up your progress. For Worcester, Massachusetts, resident Melanie Duarte, 23, her New Year’s money goals include paying off her student loans and credit card debt while building an emergency fund, "even if it’s something as small as like $50."

The idea of saving for three to six months’ worth of expenses can be daunting, so it’s best to start with a smaller milestone.

Rachel Lawrence, head of advice and planning at Monarch Money, recommends starting with a goal of saving $1,000, then moving on to save one, three and six months of expenses.

The way you approach this goal can vary depending on your income and your budget.

Finding balance

Finding a balance between saving for your long-term goals while also making sure you enjoy your money is important, but it can also be challenging.

After the death of her grandfather just a few years after retirement, Tiana Stewart, 26, of Maryland, felt that he didn’t get to enjoy the fruits of his labor. So, this past year, Stewart decided to enjoy her life and travel.

“I do understand saving for retirement is important, but I also want to enjoy my life and the money that I work for at this time, especially being in my 20s,” Stewart said.

For some, participating in budgeting challenges such as the no-buy year, or no-buy month, can be a great way to set boundaries on your spending and set aside money towards your financial goals. Many people start such challenges at the beginning of the year and commit to keep going until the end.