The start of 2026 is approaching fast, and now is the perfect time to take control of your money. Financial literacy and smart money management are key to starting the year strong. Money expert Dasha Kennedy shares actionable advice to ensure your finances are in order before the New Year.
Know Your Numbers to Take Control of Your Money in 2026
Understanding your income, expenses, and savings is the first step toward financial freedom. Kennedy emphasizes tracking every expense in the final months of 2025. Writing down your spending habits allows you to see where money is going and identify areas to cut back.
According to a Pew Research Center survey, 54% of Americans feel confident in their understanding of personal finances, though familiarity with budgeting and debt management is higher among upper-income households. Building financial literacy now can make a big difference in your 2026 planning.
Make Lanes: Separate Your Money for Better Management
Kennedy suggests dividing your money into separate “lanes” to ensure you’re prepared for any situation. This includes:
- Emergency fund: Keep it separate from everyday bills.
- Bills and essentials: Dedicate a lane strictly for recurring expenses.
- Nonessential spending: Track discretionary spending to avoid overspending.
For more tips on budgeting effectively, check out NerdWallet’s budgeting guide.
Choose Pay Dates That Align with Your Life
Aligning your billing cycles with your paycheck can reduce stress and avoid late fees. Kennedy advises scheduling bills around your pay dates and separating expenses into different paychecks. This simple adjustment can help ensure all bills are paid on time and your money flows smoothly.
Review Grocery Spending to Save More Money
With rising prices on groceries like beef, coffee, and produce, reviewing your grocery spending is crucial. Kennedy recommends:
- Using pantry and freezer items before shopping.
- Planning meals to reduce waste.
- Sticking to a shopping list to avoid impulse purchases.
According to USA Today, careful planning can help offset the impact of inflation on household budgets.
Set Holiday Boundaries to Prevent Overspending
The holiday season can derail your financial plan if boundaries aren’t set. Kennedy advises:
- Creating gift lists and sticking to them.
- Setting clear expectations with family and friends.
- Utilizing rewards programs and free offers.
For more on managing holiday expenses, check out CNBC’s guide to holiday budgeting.
Be OK With Canceling Unnecessary Subscriptions
Review subscriptions and cancel any duplicates. The average American pays for nearly three streaming services monthly (Forbes), so trimming one can save hundreds annually.
Set Fun Money to Keep Your Joy
Kennedy encourages maintaining a small budget for fun and nonessential spending. Cutting excess expenses doesn’t mean eliminating all pleasures—it’s about prioritizing financial goals while still enjoying life.
Taking control of your money in 2026 starts with financial literacy, smart budgeting, and intentional spending. By following these expert tips, you’ll head into the new year confident, prepared, and financially empowered.
