Worried about your finances in 2026? Here are 5 money moves recommended by experts.

Many Americans are entering 2026 facing significant financial anxiety as the ongoing affordability crisis clashes with stagnant wages, making it increasingly vital to take proactive steps to stabilize their personal finances.

Beyond these pressures, a major tax overhaul is being implemented under the Republican-led “big, beautiful” law, or OBBBA, which provides new opportunities to leverage updated regulations. Furthermore, experts note that other economic shifts, such as potential interest rate reductions from the Federal Reserve, could influence your bank balance in the coming year.

According to a recent Vanguard survey, approximately 84% of Americans have established new financial resolutions for 2026, such as opening high-yield savings accounts or creating emergency funds. This determination may be driven by rising apprehension regarding the year ahead, as roughly one in three Americans expects their financial situation to deteriorate in 2026—the highest level recorded since the 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.

The OBBBA, the tax and spending legislation signed into law by President Trump on July 4, introduces new deduction guidelines for many Americans, including workers who earn overtime or tips, as well as seniors.

Under a “no tax on tips” provision, employees are permitted to deduct up to $25,000 in tips earned before Dec. 31. Experts advise that workers must meticulously track their earnings to qualify for this deduction, given the reporting requirements set by the IRS.

“Document the numbers,” Vargas said, noting that the same applies to individuals who work overtime.

Additionally, some seniors qualify for an enhanced senior deduction starting in 2025. Individuals aged 65 and older may be eligible to claim an extra deduction of $6,000, or $12,000 for couples.

Because this deduction phases out for single filers with a modified adjusted gross income exceeding $75,000, or $150,000 for joint filers, seniors should verify their income levels to determine if they qualify.

Modified adjusted gross income is determined by taking your AGI—found on line 11 of Form 1040—and adding back specific deductions and non-taxable items.

Affordability remains a primary concern for Americans whose income growth is failing to keep pace with inflation. Financial experts suggest that creating a realistic budget is an effective way to prevent unnecessary spending.

However, it is crucial that any budget you create “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 advocates for the 50/30/20 budgeting framework, which allocates half of your take-home pay to essential costs, one-third to lifestyle spending, and 20% toward goals like saving for a vacation or paying down debt.

“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 model does not suit your needs, there are various other budgeting strategies, such as zero-based budgeting or the envelope system. The envelope system involves setting spending caps for specific categories, like dining out, and using cash for those expenses throughout the month.

Zero-based budgeting requires assigning every dollar of your take-home pay to a specific category—such as groceries, rent, or savings—until no unallocated funds remain.

Von Tobel noted that AI tools can help individuals bypass the need for constant self-discipline by automating the savings process.

“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

Vanguard’s Vargas emphasized the importance of prioritizing the repayment of high-interest debt, such as credit card balances, because it is the most expensive to maintain and “can get out of control quickly.”

When working to eliminate debt, von Tobel suggests focusing on 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 common strategy for debt reduction is the “snowball method.” This involves organizing your debts by balance size and paying off the smallest ones first, regardless of interest rates, to build momentum and maintain motivation as accounts are cleared.

Borrowers have other avenues for managing credit card debt as well. One option is transferring balances to a 0% APR card, which can eliminate interest charges for up to 21 months. Another is contacting your credit card issuer to request a reduction in your APR.

Lock in savings rates before they fall

The Federal Reserve recently implemented a 0.25 percentage point interest rate cut, marking its third consecutive reduction this year, and has signaled the possibility of further cuts in 2026.

Sam Taube, a lead writer for the financial advice site NerdWallet, suggests that with at least one more rate cut anticipated next year, it may be wise to open a high-yield savings account or a certificate of deposit before rates decline further.

Online financial institutions are currently providing some of the most competitive rates, with annual percentage yields hovering 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

Financial professionals stress the importance of maximizing tax-advantaged savings accounts, such as a 401(k), if they are offered by your employer. If your company provides a matching contribution, you should aim to contribute enough to capture the full amount.

Vargas suggested that a good starting point is to determine your employer’s match threshold—typically between 3% and 6% of your salary—and ensure you contribute at least that much.

“Work toward maximizing that employer match, so you’re not leaving money on the table,” he said.

Von Tobel noted that setting up automatic payroll deductions is a simple way to ensure consistent 401(k) contributions, adding that “small, consistent increases create enormous long-term compounding.”

According to CBS News business analyst Jill Schlesinger, you can also make a last-minute contribution to your 401(k) before the end of the year.

Because retirement contributions reduce your taxable income, “you may also reduce your tax bill in April,” she noted.