After the holiday glow wears off, the presents have been opened, and the credit card bills arrive, you may be ready for a financial reset. January is a natural time to adopt new financial habits, but if your to-do list is long, it can be difficult to know where to start.
Below, we’ll explore the best research-backed financial habits to start in January so you can start the new year off right.
It is never a river time to implement healthy financial habits, but January can be the perfect time to create new ones. That’s because of something called the “fresh start effect.” This is the psychological phenomenon that explains the motivational boost we get from temporal resets—for example, a new week, a new month, or a new year. This type of reset makes it easier to reflect, separate the past from the future, and envision achieving your goals.
With the calendar on your side, use the start of the new year to adopt some healthy financial habits. Here are some solid ways to get started:
Not only is a new calendar year a good logistical time to set goals, but it can also have emotional benefits. According to Fidelity’s 2025 New Year’s Financial Resolutions Survey, 65% of participants felt optimistic about the new year, believing they would be in a better financial position in the year ahead.
To set yourself up for success in 2026, set specific goals and create a plan to achieve them. For example, instead of saying you want to “save more money,” your goal might be to increase your savings rate from 5% to 10% by the end of the year. Your plan might involve increasing your savings rate by one percentage point every two months until you reach 10%.
Other examples of goals to think about include:
Whatever your goal is, make sure it’s realistic. Fidelity’s survey results show that among respondents who successfully kept a 2025 financial resolution, the number one reason they were successful was that their goal was realistic and easy to maintain.
Read more: Why Your Financial Resolutions Never Keep and What To Do Instead
If you don’t try to negotiate your monthly expenses, you could be missing out on hundreds of dollars in potential savings. According to a 2021 Consumer Reports survey, about 70 percent of participants who tried to negotiate their utility bills received a rate discount or other benefit on their bundled plans.
The beginning of January is a great time to see if you can catch a break on any bills, as this is often a time when your expenses will increase (either due to annual rate increases or, in the case of gas and electricity, the winter weather). Make a list of your monthly bills and start negotiating with these tips:
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Research your competitors so you can quote the lowest prices on the market – and actually be willing to switch suppliers.
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Ask to speak to the cancellations or customer retention department. These are usually the people who have the power to lower your bill.
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If you are a long-time, loyal customer, let them know.
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Ask if there are any promotions or discounts you qualify for.
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Once you get an agreement you’re happy with, get it in writing.
And remember, patience and kindness go a long way when asking for what you want.
Read more: Bill negotiation guide: How to secure lower rates and save money without cutting back on service
With tax season approaching, January can be an ideal time to increase your retirement contributions. Fidelity’s 2025 Quarterly Retirement Analysis found that 17.4 percent of participants increased their 401(k) contribution in the first quarter of the year, while only 4.9 percent decreased.
In this analysis, Fidelity notes that while Q1 2025 “presented challenges for pension savers”, they have largely stayed the course and continued – or even stepped up – their saving behaviour.
You can often increase your retirement contributions without making a significant difference to your current lifestyle – a win-win. When January rolls around, why not give it a try? At the beginning of the year, increase your contributions by one percentage point. If in a month or two you don’t notice a negative impact on your other financial obligations, try increasing it again. The sooner you make these adjustments, the more you will benefit from them.
Read more: How much do you need to save for retirement?
As well as increasing your pension contributions, the start of the year is a good time to review your budget. Why? As mentioned above, January is a common time for rising bills and other expenses. At the same time, the first month or quarter of the year is also a popular time to receive a raise. Whether you earn more or spend more, your budget will need a refresh.
Here’s how to get started:
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Review your existing budget. See where you’re spending the most, gauge your progress toward your savings and debt-paying goals, and look for expenses you no longer need or want.
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Update the feeds. If you’ve recently received a raise, make sure it’s reflected in your budget. Similarly, if there are other changes to your salary (for example, maybe you’ve increased your pension contributions), take that into account too.
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Add or subtract spending and savings categories. Did you sign up for a gym membership this month, cancel Netflix, or make another change to your monthly spending? If so, change your budget categories so they accurately reflect your moving expenses in the new year.
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Plan your savings goals. If you set a new savings goal, it deserves a place in your budget just like any other expense. For example, let’s say your goal is to save $2,000 for a vacation by June. If you add a line item to save $400 each month, you’ll come into June with $2,000 ready.
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Recalibrate the numbers. You cannot add or subtract line items from the budget without also adjusting the numbers. For example, if you add a new expense to your budget—like a $50 gym membership—you’ll need to reallocate $50 from elsewhere to pay for it. Play with the numbers until everything checks out. If things feel tight, you’ll need to prioritize your most important expenses.
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Don’t set it and forget it. January isn’t the only time you should review your budget. Check in and make any adjustments whenever your income or expenses change, you hit one of your savings goals, or your current plan just isn’t working.
Many financial experts suggest checking your credit report at least once a year to make sure it’s free of mistakes. While you’re already sitting down to negotiate bills, review your budget, and set financial goals at the start of the year, you might be checking your credit at the same time.
Don’t skip this task: A recent survey by Consumer Reports and WorkMoney found that of respondents who successfully checked their credit, 44 percent found errors. Mistakes on your credit report can have major financial consequences, such as difficulty qualifying for credit cards and loans or renting an apartment. Finding these mistakes allows you to challenge them and make corrections.
Here’s how to do it:
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Visit annualcreditreport.com.
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Request free reports from each of the three major credit bureaus: Experian, Equifax and TransUnion. (You are entitled to free weekly reports.)
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Review each report to ensure that your personal and account information is correct and up-to-date.
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If you find mistakes, contact the credit reporting company to file a dispute (you can do this online or over the phone). Next, send a dispute letter to the company that provided the incorrect information. The CFPB provides a sample dispute letter that you can use as a template.
Take advantage of the new year’s natural reset to establish financial habits that can serve you throughout the year. But don’t put too much pressure on yourself. If habits go away – as they sometimes do – don’t give up. Rather than an all-or-nothing mindset, aim to improve your financial situation without requiring perfection. Any step in the right direction will benefit you in 2026.