TULSA, Okla. — January is the perfect time to take control of your finances and start fresh after holiday spending.
Whether you're looking to pay off debt, save more money or simply get organized, seven steps can help you build a stronger financial foundation for the year ahead.
A new study by NerdWallet found that a majority of Americans think they'll be better off financially in 2026 than they were in 2025, but just over half think consumer prices will worsen.
2 News Oklahoma spoke with Kimberly Palmer from NerdWallet about practical ways to reset your finances to set yourself up for success in 2026.
Step 1: Cancel subscriptions you don't need
The easiest way to free up monthly cash is to review your subscriptions. Many of us have signed up for free trials or monthly services that we simply don't use anymore.
"We've often signed up for free trials or opted into some new monthly subscriptions that we just don't need anymore, so it's a really good time to just take a look and think, okay, what can I let go of going into the new year?" Palmer said.
Check your Apple Wallet subscriptions or comb through your credit card statements to see what you're paying for monthly. You might be surprised by streaming services or other subscriptions you forgot about.
Check the link at the end of each step for more our more in-depth conversation.
Step 2: Set up sinking funds
A sinking fund is simply a savings account for specific future expenses. If you know you have big costs coming up this year – like a summer vacation, summer camp or holiday spending – start saving for them now.
"Set aside an amount of money, a small amount every month, put it into a high-yield savings account, and then you'll be ready for that cost when it pops up," Palmer said.
This strategy makes it much easier to absorb large expenses when they arrive.
Step 3: Check your credit reports
Your credit report includes information on all your credit accounts and lenders, but it often contains errors. There might be accounts you don't recognize or old accounts that should have been removed, but are dragging down your credit score.
Pull your credit report for free at annualcreditreport.com and look for any errors you can contest and get removed. This simple step could help boost your credit score.
Step 4: Freeze your credit or check your freeze status
Freezing your credit prevents the credit bureaus from opening new accounts in your name, an effective way to prevent identity theft and fraud.
"It means that no one can pull your credit report and your credit score in order to open a new account," Palmer said.
Keep in mind that if your credit is frozen, you'll need to unfreeze it before applying for new credit, like a mortgage, auto loan, or credit card. This extra step can also prevent impulsive credit decisions.
If you've already frozen your credit, now is a good time to ensure you have all your login credentials organized.
Step 5: Review your beneficiaries
Many financial accounts – including retirement accounts and bank accounts – allow you to list beneficiaries, but these designations are often outdated or missing entirely.
"January is just a good time of year to say, okay, let me go in, update all of those," Palmer said.
This is important at any age, especially if you've experienced major life changes like marriage or having children. Keeping beneficiaries current makes your estate planning much more organized.
Step 6: Boost your retirement savings
"When you're a young person, and you have many decades to go before retirement, it's great to increase your retirement savings, because every little bit really magnifies so much over those decades," Palmer said.
Even if you're close to retirement, small increases in your monthly contributions can add up significantly by the end of the year.
Step 7: Accelerate debt payoff
Palmer noted that many people start the new year carrying debt from holiday spending. Creating a debt payoff plan can help you tackle this systematically.
She recommends two main approaches: the snowball method, where you pay off your smallest debts first to build momentum, and the avalanche method, where you focus on your highest-interest debt first.
"Whatever works for you, works great, there's no one right answer, you just want to make a plan," Palmer said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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