Your financial resolutions are well-intentioned.
You start the year promising yourself you’ll “spend less.” Or perhaps you’ve vowed to reduce the smothering debt that’s been a drag on your desire to save more.
The number of Americans who think their finances will worsen in 2026 is 32 percent, a new high, according to a Bankrate survey. It was 23 percent a year earlier.
People in this camp cited inflation as the top concern. Others are worried about stagnant or declining income, debt and poor spending habits.
As the longtime director of a financial ministry at my church, I’ve had a front-row seat to the annual ritual of making resolutions. Here’s why most plans fail: People can’t forgive themselves.
Case in point, from a reader who emailed me as 2025 ended: “My wife and I have a mixed financial situation exacerbated by a year of unemployment for my wife that sent us into a significant amount of debt across credit cards and her unruly student loans. She has significant shame around this, and despite wanting to get out of debt, she remains challenged at truly facing the situation head-on.”
Regret can be useful. As a rearview mirror, it allows you to look back and assess your situation. But as with driving, you can’t keep your eyes focused too long on the road behind because it impedes your ability to see what’s ahead.
If you want to cut your spending, boost your savings, get out of debt in 2026 or improve your net worth by year’s end, you have to let go of some things.
If life sent challenges — a job loss, for example — tell yourself, “That was then, this is now.”
Don’t shame yourself into saving. Don’t beat yourself up about the debt you’ve amassed. Guilt isn’t an effective way to elicit long-term change. In 2026, try something different: financial forgiveness.
Perhaps you didn’t make much progress with your money goals last year. By spring, you became discouraged and reverted to old habits. You started shopping to soothe your soul.
Allow yourself some grace. Then move forward by creating a SMART plan, which stands for specific, measurable, attainable, relevant and time-bound.
Here’s a 30-day “clean slate” challenge to help kick-start your financial resolutions in 2026.
Week 1: The Audit (specific)
Start a spending journal. The purpose is to track where all your money is going, whether it’s $4 for a cup of coffee or your $200 cable bill. You can use the notes app on your phone or buy a small notebook.
The goal is to look for leaks. During the month, you’ll use the journal to spotlight spending habits you should change to free up the money you need to put toward debt, save or both.
Week 2: The Checkup (measurable)
Here’s where looking back can help you move forward. This week is all about the data.
You want to see where you stand. Think of it as a baseline. Prepare a net worth statement, which provides a broader view of your financial health than your income statement.
Start by listing all your assets (what you own) and all your liabilities (what you owe). Your net worth is the difference between the two.
When I meet with people to review their budgets, I start with their net worth statement. Some people focus only on their assets — their home, savings or the value of their cars. Others worry only about their liabilities — credit card debt, student loans or a mortgage.
But each part of your net worth statement provides valuable information that can get you closer to achieving financial goals.
If you have a low or negative net worth, don’t despair. This is only your starting line.
Week 3: Set It and Forget It (achievable)
This week, you’re not going to rely on willpower. Instead, let automation create better money management. If your employer allows you to direct deposit your pay into multiple accounts, send some of it into a savings account. If you can’t split your paycheck, set up automatic, recurring transfers from your checking to your savings account.
If money is tight, save whatever you can.
Use your spending journal to identify expenses you can reduce to save even more. Now is the time to put that exercise into action. If you already have automatic deductions to a savings account, increase the amount. Challenge yourself.
Week 4: The Debt Dash (relevant and time-bound)
Start this week by saying your debt amount out loud. If you feel emboldened, share the figure with someone you trust.
This exercise is designed to help you move past embarrassment. The debt amount is what it is, and being afraid to say the number won’t make it go away.
Just like misery loves company, you might do better with an accountability partner. Team up with someone else trying to get out of debt, or ask the frugal person in your friend or family circle to help hold you to your plan. Allow the person to check on your progress and offer encouragement when you’re getting off track.
If you have debt, your goal also involves using a payoff method I dub the “debt dash.” You’ll list all your debts, from smallest to largest. Any extra funds from your budget are applied to the debt with the lowest balance while you make the minimum payments on the other debts.
The math might suggest paying off the debt with the highest interest rate first. However, getting out of debt is as much a mental game as a mathematical endeavor. Here’s the “relevant” part. The rationale for this method is to give you a faster win (this is the “dash”).
For the “time-bound” component, determine how much extra money you have to target the smallest balance. Then figure out how long it will take to pay it off.
So, are you ready to take the 30-day clean slate challenge? Tell me about your successes. Email me at [email protected].
In 2026, you can achieve your financial goals without the guilt.
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