Many Americans are heading into 2026 with serious money worries as an affordability crisis collides with stagnant wages, making it more important to take steps to shore up their finances.
On top of that, a major tax overhaul is taking effect under Republicans’ “big, beautiful” law, or OBBBA, creating opportunities to benefit from the new rules. Other financial changes, such as potential interest rate cuts from the Federal Reserve, could also impact your bank account next year, experts say.
About 84% of Americans have new financial resolutions for 2026, including building an emergency fund or opening a high-yield savings account, according to a recent Vanguard survey. That resolve may be spurred by growing unease about the year ahead. About one in three Americans thinks their finances are likely to worsen in 2026, according to Bankrate, the highest share since the personal finance firm began tracking sentiment in 2018.
“The last few weeks of the year are a great time to review your finances, especially around saving, and it’s important to know how you might be impacted by the new tax law,” Sabino Vargas, a certified financial planner and senior financial advisor for Vanguard, told CBS News.
Here are some tips to 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, establishes new tax deduction rules for many Americans, including seniors and workers who earn tips or overtime.
Under a “no tax on tips” provision, employees may deduct up to $25,000 earned in tips before Dec. 31. To qualify for the deduction, it’s important that workers track their earnings closely because of the IRS’s reporting requirements, experts say.
“Document the numbers,” Vargas said, noting that the same applies to individuals who work overtime.
Some seniors are also eligible for an enhanced senior deduction beginning in 2025. Individuals who are 65 and older may claim an additional deduction of $6,000, or $12,000 per couple, if they qualify.
Because the deduction phases out for single earners with modified adjusted gross income above $75,000 or $150,000 for joint filers, seniors should check that income measure to assess whether or not they are eligible for the deduction, according to Vargas.
Modified adjusted gross income is calculated by finding your AGI, which is on line 11 of your Form 1040, with some deductions and non-taxable items added back in.
Make a budget that will stick
Affordability is a top concern for Americans, whose paychecks aren’t keeping pace with inflation. Making a budget that you can realistically follow is a good way to ensure you aren’t wasting any money, financial experts say.
It’s essential, though, that any kind of budget you design “matches the way you live,” Alexa von Tobel, founder and managing director of Inspired Capital, told CBS News.
“Most budgets fail because they’re too aspirational. The ones that stick are automated and grounded in your real patterns,” she said.
Von Tobel said she prefers the 50/30/20 budgeting rule, which portions half of your take-home pay to essentials; one-third to lifestyle expenses; and 20% to goals such as paying off debt or saving for a vacation.
“A new year is a perfect time to readdress how your budget aligns with this framework and see where you need to adjust,” she said.
If the 50/30/20 rule doesn’t work for you, there are plenty of other budgeting approaches, including the envelope system and zero-based budgeting. The envelope system sets spending limits for categories like dining out, with that amount placed in cash and used throughout the month.
Zero-based budgeting assigns every dollar of your take-home pay to a specific category — such as rent, groceries or savings — until there’s nothing left unallocated.
AI tools can remove the self-discipline part of the equation for people and automate savings processes, von Tobel noted.
“Money management is becoming less about discipline and more about system design. Automate what you can, use tools that give you back time and clarity, and let your financial plan run even when your schedule gets chaotic,” she said.
Pay down high-interest credit card debt
It’s important to prioritize paying down high-interest debt like credit card balances because it’s the most expensive to carry and “can get out of control quickly,” Vanguard’s Vargas said.
When it comes to shedding debt, von Tobel recommends tackling credit card balances with the highest annual percentage rates (APRs) first.
“Line up your balances by APR, automate all minimum payments and aggressively target the highest-interest line first. Structure beats willpower every time,” she said.
Another popular strategy for paying down debt is the so-called snowball method. It involves listing your debts by balance and paying off the smallest ones first, regardless of interest rates, to build momentum and stay motivated as balances disappear.
Borrowers have other options for tackling credit card debt as well. One approach is to move balances to a 0% balance transfer card, which can eliminate interest for as long as 21 months. Another is to contact your credit card issuer to ask for a lower annual percentage rate, or APR.
Lock in savings rates before they fall
The Federal Reserve last week cut interest rates by 0.25 percentage points, its third consecutive cut this year, and hinted at an additional rate cut in 2026.
With at least one additional rate cut expected next year, it may make sense to open a certificate of deposit or a high-yield savings account before rates fall further, said 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%.
“If the Fed lowers rates further from here, they will offer lower fixed yields, so it might make sense to open up a CD of fixed-yield savings instrument like that sooner rather than later,” he said.
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), financial professionals say it’s important to make the most of it. If your company matches employee contributions, aim to contribute at least enough to receive the full match.
Vargas said a good starting point is to find out what level of contribution your employer will match — typically it’s between 3% to 6% of your salary— and to contribute at least that much to your account.
“Work toward maximizing that employer match, so you’re not leaving money on the table,” he said.
Setting up an automatic payroll deduction is an easy way to ensure you’re contributing to your 401(k), Von Tobel said, adding 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), according to CBS News business analyst Jill Schlesinger.
Because retirement contributions lower your taxable income, “you may also reduce your tax bill in April,” she noted.
