1. Plan your expenses in advance

The beginning of the year is the perfect time to plan for any major expenses you expect in 2026. Maybe you will need a new roof or porch, your HVAC unit might be in its final year, or it could be time for a new vehicle. Whatever large expenses you anticipate in 2026 (or next year), start saving in advance to avoid depleting your emergency fund or using credit card debt. Popular budgeting apps such as YNAB make it really easy to plan for these large, irregular expenses.

2. Make a plan to pay off high-interest debt

If you have any high-interest debt, there’s no better time than now to make a plan to eliminate it. Mathematically, it’s always better to start with your highest-interest debt and work your way down. If you can pay off all of your high-interest debt this year, that’s great, but don’t get discouraged if it will take you longer to eliminate your debt. Check your balances so you know exactly how much debt you have (it’s not uncommon for those with debt to not know exactly how bad the problem is) and budget as much as you can towards paying off your debt.

In the Financial Order of Operations, the only steps before paying off high-interest debt are covering your highest insurance deductible and getting your employer match in your retirement account. After that, everything should be put towards paying off your debt until it is gone.

3. Consolidate forgotten retirement accounts

Remember that 401(k) you had with your first job 15 years ago? Whatever happened to it? There are about 32 million forgotten or left-behind retirement accounts in the US, and many of those accounts are probably not invested appropriately or have high expenses and fees.

If you think you may have a lonesome retirement account out there somewhere, it’s worth taking some time this year to consolidate your accounts. Chances are rolling them into your current employer retirement account or IRA could give you access to better investments and lower fees and expenses. Check out our free download for help deciding what to do with your old retirement account. Even if those forgotten accounts are better off on their own, it would be wise to take a look at their investment allocation and adjust as necessary.

4. Check on your student loans

If you have any federal student loan debt, make sure your loans are current and you are enrolled in an appropriate repayment plan. Some repayment plans have been eliminated and eligibility for loan forgiveness has been further restricted. In January, the Trump administration plans to start garnishing wages for those who are behind on their student loans. It is estimated that around 5 million Americans with student loans will have their wages garnished starting this month, and millions more will be at risk in the coming months. If you have any federal student loan debt, it is imperative that you make sure your loans are current or you risk having your wages garnished.

5. Live below your means

Spending less than you make is a basic financial goal, but one well worth mentioning. 26% of Americans say they spend more than they make, and 56% of the country has at least some difficulty paying all of their bills. If you are one of the millions of Americans struggling to live below your means, it is not easy to spend less or make more, which you already know. Check out this article I recently wrote for some tips on how to get ahead financially and break the paycheck-to-paycheck cycle: “How To Build Wealth With an Average Income.”

6. Don’t forget to enjoy yourself

It’s not financially sustainable to live like a miser on ramen noodles and only spend money on the essentials. Set aside some money to spend on yourself this year. It could be as small as budgeting for a daily coffee or as big as planning your once-in-a-lifetime dream vacation. If you are saving what you know you need to be saving for retirement and are on-track elsewhere in your financial life, you owe it to yourself to splurge a bit on what you enjoy.

The beginning of the new year is a great time to make positive changes in your life, financial or otherwise, but it should come as no surprise that most New Year’s resolutions fail. To give yourself a greater chance at making changes in your own life, it’s important to set specific, realistic, and achievable goals. Ease yourself into your resolutions instead of going from 0 to 100 once the clock strikes midnight. And if you aren’t as successful as you wanted in January, there’s no need to wait until next year to try again.

You only get one chance at a successful retirement. Besides the basics like saving more money, what can you do to ensure a successful retirement? What insights can we gain from those who are already retired to better plan our own retirements?

1. Retirement is better than working

The majority of retirees, 67%, are happier on a typical day in retirement than they were on a typical day while working. Of the 33% who are not happier in retirement, about half say they are lonely. It’s no secret that loneliness is a leading cause of unhappiness and depression in older Americans, and having a network of family and friends that you regularly see can help ward off loneliness in retirement. Consider living in a community where many of your neighbors are also retired. You don’t necessarily need to move to The Villages, but having close friends and neighbors who are also retired can prevent loneliness.

2. Take care of your health

Being in good health can make or break your retirement. Of retirees that reported being happier in retirement than they were while working, 49% of them said they planned ahead by prioritizing their health before retirement. 44% of retirees are concerned about their finances in retirement, while 34% say health issues are their biggest concern. Saving for retirement and taking care of your health must go hand-in-hand. If you don’t take care of your health, it doesn’t matter how much you have saved for retirement. Just like it is never too early to start saving, it is never too early to prioritize your health.

3. If there’s something you want to do in retirement, don’t wait to do it

There’s a big gap in what we imagine doing in retirement, before we retire, and what we actually end up doing in retirement. The top activities pre-retirees imagine for retirement are traveling (79%) and exercising (71%). That makes a lot of sense. Traveling extensively can be difficult to do while employed, and it’s a common dream to “travel the world” once you retire. And exercising to stay in good health is another great goal. However, the top activity for current retirees isn’t traveling or exercising but watching TV.

Don’t take anything for granted in retirement. If there’s something big you want to do or accomplish, make concrete plans now instead of potentially waiting until it’s too late.

4. You might worry less about money

Interestingly, many retirees report worrying less about money than those who aren’t yet retired. 34% of pre-retirees are worried they will outlive their money, while only 22% of retirees fear the same. 46% of retirees say they have fewer financial problems than they anticipated before retirement. This may sound strange, but it’s how it should be: worrying about money, and adequately planning, before retirement can make it much less of an issue in retirement. 78% of retirees say they have more than enough or just enough money to last them through retirement, while 19% say they have less than they need.

It should be encouraging that a large majority of retirees believe they have enough money to last them through retirement, and many worry about money less than they did before retirement. This doesn’t happen without planning ahead and saving what you know you need to save for retirement.

5. When you retire matters

The period of higher inflation we’ve experienced since 2020 will likely go down in history as not the best time to retire. In 2020, before inflation had really started impacting retirees, 17% said their spending was a little higher or much higher than they could afford. Last year, 31% of retirees said their spending was a little higher or much higher than they could afford. Periods of higher inflation often hits retirees the hardest since many are on fixed incomes, with pensions that may not adjust for inflation and Social Security, and the last few years have been no exception.

When planning for your own retirement, it’s a good practice to hope for the best but be prepared for the worst. What happens if inflation skyrockets when you retire? Or what happens if you retire at the beginning of a prolonged stock market decline? Make sure your retirement plan is ready for the worst-case scenario.

Retirement is an exciting period of life if you’ve prepared well. Listen to those who are retired now and prioritize your health, make plans to accomplish your goals, whether that’s traveling, spending more time with friends and family, or something else, and be prepared to worry less about money and be happier than you were while working.