Max out retirement contributions and prune subscriptions to start off 2026
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Another year has passed and you may not have gotten your finances in order. Whether you’re slacking off or not doing your best, the new year offers the opportunity to initiate some financial best practices. Here are some easy places to start.
1. Maximize your retirement contributions
It’s good financial practice to set aside (and hopefully consolidate) money for retirement. If you have an employer that matches your 401(k) contribution, you should maximize that match because it’s essentially free incremental money for you!
In 2026, all major contribution limits will increase, up to $24,500 for 401(k) contributions, up to $72,000 for employee-plus-employer limits, and up to $7,500 for traditional and Roth IRAs.
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If you’re over 50, try to add a catch-up contribution (and if you’re 60-63, those catch-up contributions are even larger)!
Toast to the new year, but kick it off by making important financial resolutions (iStock)
If you own your own business, including a solo entrepreneur, talk to your accountant or a TPA (third-party administrator) about setting up a defined contribution or defined benefit plan where you can set aside up to six figures on a tax-deferred basis!
2. Cut your subscriptions
Yes, every business wants to rent your life back to you as a subscription plan, but that doesn’t mean you have to comply!
Look at your last 12 months of credit card and bank statements to find subscriptions you no longer use or can reduce.
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Trim your streaming services. Switch to free ad-supported versions of video or music. Look into fitness or software you may not be using. Even saving $20-$100 a month can be significant within a year!
3. Renegotiate recurring invoices
Our providers love to raise our fees, but they also don’t like to lose business. From your cable, internet and cell phone providers to your insurance carriers, call them and tell them you’re considering switching. Let’s see if they can offer you a better price for this year. If not, move on to another provider that will!
Making a few phone calls can save you hundreds or even thousands of dollars!
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4. Get your family’s finances in order
The new year is the perfect time to audit your family affairs. Do contacts have access to your and your family’s wishes and information regarding aging, medical emergencies, or coping with death? If not, be sure to put them together in a legacy and wishes planning kit.
Make sure all your family members have critical documents in place, including wills, powers of attorney (both medical and property), and financial trusts, if applicable.
Yes, every business wants to rent your life back to you as a subscription plan, but that doesn’t mean you have to comply!
Also audit insurance and financial accounts to ensure beneficiaries are correct and make any changes if they are not, as designated beneficiaries supersede a will.
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Keep all information somewhere known and accessible to those who need it. You can do this yourself, or if you need help getting started, use the kit I created for under $100 (it’s called Future File).
5. Meet with a financial planner
Whether your goal is to buy a home or plan for retirement, having someone who can evaluate your goals and risk tolerance is incredibly helpful. If you don’t have a financial planner, meet with at least a few. If you have one, be sure to meet with him or her to review your current goals and objectives.
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6. Consider hedging your portfolio
Given the government’s spending and our nation’s troubled fiscal foundation, it’s a good idea to hedge your portfolio. Whether you’re looking at precious metals or other alternative assets that may protect against deterioration in your purchasing power, consider a dollar-cost averaging program. This means you buy at regular intervals so your cost is averaged over time and you don’t try to time the market. Considering the rise in precious metals as well as concerns about the future, this program may make sense.
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For metals or other alternative hedging assets, look for those that don’t have very high profit margins and be sure to buy from reputable brokers. Having a financial advisor as discussed above can help with this.
Taking some easy, prudent steps in the new year can help make your 2026 finances a source of pride rather than a source of stress!
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