Ringing in the new year is a natural time to work on our finances, but improving your finances doesn’t have to start with investing strategies or meetings with a financial advisor. In fact, real financial confidence begins much closer to home — with a clear, workable budget that helps you understand where your money is going and how to use it intentionally.
This article by Jessica Gudeman, Owner, Squirrel Financial Coaching, focuses on practical steps everyday households can take to gain control, reduce stress, and build momentum in 2026 by putting strong budgeting systems in place. And if you need guidance along the way, Squirrel Financial Coaching can help you turn these ideas into a plan that actually works for your real life.
Your 2026 Financial Reset: Simple Steps to Build Confidence and Control
A new year brings fresh energy, new goals, and — for many people — a renewed desire to “finally get it together” with money. But financial wellness isn’t about perfection, complicated spreadsheets, or depriving yourself. It’s about clarity, intention, and building systems that support your real life.
If you’re looking to strengthen your financial footing in 2026, here are practical, doable steps that can make a meaningful difference — no shame, no jargon, just tools that work for everyday households.
1. Calculate Your Net Worth (It’s Easier Than You Think)
Net worth isn’t about being “rich.” It’s a snapshot of your financial health.
The formula is simple:
What you own — What you owe = Your net worth
List your assets (bank accounts, retirement accounts, home value, vehicle value) and subtract your debts (credit cards, loans, mortgages). That’s it.
Tracking this number yearly helps you see progress even when day‑to‑day life feels messy. A rising net worth—no matter how slowly — means you’re moving in the right direction.
2. Review Your Beneficiaries, Insurance, and Subscriptions
Life changes. Your paperwork should too.
Take time to review:
● Beneficiaries on retirement accounts and life insurance
● Insurance coverage (auto, home/renters, health, disability)
● Monthly subscriptions and memberships
You might find outdated beneficiaries, gaps in coverage, or recurring charges you no longer use. A quick audit can save money and prevent future headaches.
3. Revisit Your Financial Goals and Priorities
Your money should reflect the life you want — not the life you had five years ago.
Take time this month to ask yourself:
● What matters most to me right now
● What do I want to accomplish in the next 12 months
● What financial habits or obligations no longer fit my values
Maybe you want to pay down debt, save for a home, build a cushion, or simply feel less stressed. Naming your priorities helps you direct your money with purpose instead of reacting to whatever pops up.
4. Use a Four‑Category Budget That Actually Makes Sense
Budgeting doesn’t need to be complicated. In fact, the simpler it is, the more likely you are to stick with it.
Try organizing your money into four categories:
1. Bills — The fixed expenses you must pay
2. Debt — Minimums plus any extra you choose to put toward payoff
3. Day‑to‑Day Spending — Your flexible, everyday purchases
4. Sinking Funds — Savings for irregular or future expenses
This structure gives every dollar a job without overwhelming you with dozens of categories. It also helps you see where your money is going — and where you have room to adjust.
5. Plan for Irregular Expenses Before They Surprise You
Most people don’t struggle because of their monthly bills — they struggle because of the ones that don’t show up every month.
Think about the expenses that hit once or twice a year:
● Car registration
● Insurance premiums
● Holiday spending
● Travel
● Back‑to‑school costs
● Medical bills
● Home or vehicle maintenance
● Pet expenses (vet visits, medications, grooming, annual shots)
These aren’t emergencies. They’re predictable, even if the timing varies.
Start by listing your irregular expenses and estimating the annual total. Divide that number by 12 to save monthly, or by the number of paychecks you receive each year — often 26 — if you prefer to set money aside each payday. Either approach builds a sinking fund that keeps these costs from derailing your budget.
6. Simplify Your Spending with a Dedicated Daily‑Use Account
One of the easiest ways to avoid overspending is to separate your money by purpose.
Consider opening a second checking account just for day‑to‑day spending — gas, groceries, restaurants, household items. Transfer a set amount each payday. When the account is empty, you’re done spending until the next cycle.
This creates natural boundaries without requiring constant tracking or guilt. It’s a simple system that works beautifully for many households.
A Fresh Start Is Within Reach
Financial wellness isn’t about being perfect. It’s about building systems that support your life, reduce stress, and help you move toward your goals with confidence.
Start small. Pick one or two steps from this list and build from there. By the end of 2026, you might be surprised by how much clarity, control, and peace you’ve gained—one simple habit at a time.
And if you’d like support putting these pieces together, that’s exactly what we’re here for at Squirrel Financial Coaching. We focus on everyday money solutions — not investing or product sales — so you can build a financial life that feels organized, intentional, and truly your own.
— This piece is part of a monthly series with the Monroe Chamber of Commerce and its members. This article by Jessica Gudeman, Owner, Squirrel Financial Coaching.
