Hey Reader,
Happy New Year!
As you're starting to come down from your holiday overtime hangover, it's normal to feel a little uneasy about your finances. It's also normal to be unsure of where to start to clean up some of the money mess left over from the past two months.
Sometimes, just knowing where to begin is half the battle. That's why I'm bringing you some simple, actionable steps to take with your money going into 2026.
1. Track your cashflow
The holidays ๐ can create some chaos within our bank ๐ฆ accounts and credit card ๐ณstatements. January is a good place to start tracking your money "normalcy".
Start by paying attention to what is coming...and what is going out this month. Even a simple list ๐, spreadsheet, or a budget tracking app to help you understand where your money is going.
From there, you can highlight ๐ or make note of areas you want to reduce/eliminate โ so you can redirect those funds to paying off that Christmas debt, or put money into that emergency fund.
2. Create your sinking funds for those predictable expenses
โ...in this world nothing can be said to be certain, except death and taxesโ - Benjamin Franklin
There are several other things we can be mostly certain of, and that's where sinking funds come into play. So why not take the time right now to set your annual budget ๐ฐ for the following categories and create a plan to set money ๐ซฐ๐ผ aside each paycheck ๐ฒ?
Sinking Funds to Consider
- Holidays ๐
๐ผ: we just came out of the busiest holiday season of the year, and if you were unable to make it through without swiping your credit card, it's probably time to start saving for this year...right now.
- Vehicle Maintenance ๐: If you own a vehicle, chances are it will need some type of maintenance this year. Whether it's an oil change, or a set of new tires, plan on setting aside (at a minimum) your auto insurance deductible.
- Home Maintenance ๐ก: Home ownership, just like vehicle ownership, comes with annual maintenance needs. It could be as simple as having your trees trimmed back, all the way to needing a new roof. To calculate how much you should set aside, take your homes current value X 1% = amount to set aside in savings.
- Minor Medical ๐ฉป: If you're not putting money into an HSA, you should have a sinking fund for minor medical, and just like with vehicle maintenance, you should have your medical deductible at a minimum.
- Vacation ๐ด: Start thinking now about where you'll be vacationing this year. Do your research and figure out a budget you can save up to. Vacations with debt are counter productive if you're coming back home to a giant credit card bill.
3. Run a quick money audit
Take 15-minutes โ to review your spending habits, check your balances, and identify one area where money is leaking ๐จ. Tiny adjustments each week can add up to real progress by the end of the year.
Need a little more guidance with this? Download my Money Reset Guide for 6 tips on how to create real change with your money.
4. Start planning for retirement
Even if you've just started your career ๐ฎ๐ผโโ๏ธ, you should be getting familiar with your retirement gap. What is the retirement gap you ask?
The retirement gap ๐งฎ is the difference between what your pension will pay out, and what you actually need to cover expenses in retirement.
The earlier you can start supplementing with alternate retirement accounts the better. Consider opening one or multiple of the following:
- Deferred Comp (457b)
- IRA/Roth IRA
- Health Savings Account (HSA)
- Brokerage Account
Reminder: compound interest favors the early investor. Waiting until you're in your 30's or 40's can cost you hundreds of thousands of dollars in retirement.
5. Build small wins into your routine
Pick one small actionable goal this month โ
:
- Automate your savings contribution
- Reduce/eliminate a recurring expense
- Open a brokerage or other investment account
Small wins ๐ compound over time, and the help build the confidence you need to stay consistent in your money journey.
๐กTake action today:
Not sure where to start? Grab my FREE Retirement Readiness Checklist to see where you stand and pick your first action step for 2026.
Also check out my podcast:
Budgets for Badges is a podcast designed to help first responder couples navigate the intricacies of money in their relationship. Follow and listen along on Apple Podcasts or on Spotify.
Click Below to Schedule a free Consultation if you need someone to hold you accountable to your money goals this year!
Stay safe, stay sane, and stay resilient.
Coach Rebecca
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