Are you worried about your finances in 2026? Here are five essential money moves recommended by financial experts to help you secure your financial future. By Megan Cerullo, Reporter, MoneyWatch. (https://www.cbsnews.com/team/megan-cerullo/)
December 26, 2025 / 8:40 AM EST / CBS News
Many Americans are entering 2026 with significant financial concerns as an affordability crisis intersects with stagnant wages, making it crucial to take proactive steps to strengthen their financial stability. Additionally, a major tax overhaul is in effect under the Republicans' 'big, beautiful' law, the OBBBA, offering opportunities to leverage the new regulations. Other financial changes, such as potential interest rate cuts from the Federal Reserve, could also impact your bank account next year, according to experts.
A recent Vanguard survey reveals that approximately 84% of Americans have set new financial resolutions for 2026, including building an emergency fund or opening a high-yield savings account. This resolve may be driven by growing unease about the year ahead, as about one in three Americans anticipates their finances will worsen in 2026, according to Bankrate, the highest share since the personal finance firm began tracking sentiment in 2018.
Sabino Vargas, a certified financial planner and senior financial advisor for Vanguard, advises, 'The last few weeks of the year are an ideal time to review your finances, especially around saving, and it's crucial to understand how the new tax law might affect you.'
Here are some valuable tips to help you get your financial house in order as you prepare for the new year.
Prepare for New Tax Changes
The OBBBA, the spending and tax bill signed into law by President Trump on July 4, introduces new tax deduction rules for many Americans, including seniors and workers who earn tips or overtime.
Under the 'no tax on tips' provision, employees can deduct up to $25,000 earned in tips before December 31. It's essential for workers to closely track their earnings due to the IRS's reporting requirements, according to experts.
Vargas advises, 'Document the numbers,' emphasizing this for individuals who work overtime as well.
Some seniors are also eligible for an enhanced senior deduction beginning in 2025. Individuals aged 65 and older may claim an additional deduction of $6,000, or $12,000 per couple, if they qualify. However, the deduction phases out for single earners with modified adjusted gross income above $75,000 or $150,000 for joint filers.
Make a Budget that Will Stick
Affordability is a top concern for Americans, whose paychecks aren't keeping pace with inflation. Creating a realistic budget is a smart way to ensure you're not wasting money, according to financial experts.
Alexa von Tobel, founder and managing director of Inspired Capital, emphasizes, 'Most budgets fail because they're too aspirational. The ones that stick are automated and grounded in your real patterns.'
Von Tobel recommends the 50/30/20 budgeting rule, allocating half of your take-home pay to essentials, one-third to lifestyle expenses, and 20% to goals like debt repayment or saving for a vacation.
She suggests, 'A new year is an excellent time to readdress how your budget aligns with this framework and make necessary adjustments.'
If the 50/30/20 rule doesn't suit your needs, there are various other budgeting approaches, such as the envelope system and zero-based budgeting.
Pay Down High-Interest Credit Card Debt
Prioritizing the repayment of high-interest debt, such as credit card balances, is crucial as it's the most expensive to carry and can quickly spiral out of control, according to Vargas.
Von Tobel recommends tackling credit card balances with the highest annual percentage rates (APRs) first, automating minimum payments, and aggressively targeting the highest-interest line. She states, 'Structure beats willpower every time.'
The snowball method, which involves paying off the smallest debts first, is another popular strategy to build momentum and stay motivated.
Lock in Savings Rates Before They Fall
The Federal Reserve's recent interest rate cut by 0.25 percentage points, its third consecutive cut this year, and hints of an additional rate cut in 2026, suggest that opening a certificate of deposit or a high-yield savings account before rates fall further could be beneficial, according to Sam Taube, a lead writer with financial advice site NerdWallet.
Online financial institutions are offering some of the highest rates, with annual percentage yields around 4%. Taube advises, 'If the Fed lowers rates further, they will offer lower fixed yields, so it might make sense to open a CD or fixed-yield savings instrument sooner rather than later.'
Make Sure You're Getting the Full Employer Match
If you have a tax-advantaged savings account through your employer, such as a 401(k), it's essential to maximize its benefits. If your company matches employee contributions, aim to contribute at least enough to receive the full match.
Vargas suggests, 'Work toward maximizing that employer match to avoid leaving money on the table.'
Setting up an automatic payroll deduction is a convenient way to ensure consistent contributions to your 401(k), according to Von Tobel, who notes that 'small, consistent increases create enormous long-term compounding.'
Before year-end, you can also make a last-minute extra contribution to your 401(k), as suggested by CBS News business analyst Jill Schlesinger, which may reduce your tax bill in April.
