6 Smart Money Habits to Start in 2026

A new year is a great time to think about what's working for you financially and where you'd like to improve. If you're looking for ideas, here are some smart money habits to start in 2026.

If possible, invest at least 10% of your income. You can do that in a 401(k) at your work, an individual retirement account (IRA), an individual brokerage account -- or all of the above.

Even smaller amounts add up -- the important thing is that you're saving for your future. If you're new to the stock market, consider something like an index fund, which can offer steady, long-term growth, instead of trying to beat the market.

If you want to get started today, check out our list of the best brokerages available now.

An emergency fund is one of those must-haves for adults. Everyone's going to run into expenses they didn't see coming. By having emergency savings, you can pay these bills without feeling stressed about what you'll do or ending up in debt.

To better protect yourself, set a goal of at least a few months' worth of living expenses in your savings account. Conventional wisdom is three to six months of expenses, but having more never hurts.

Don't let their reputation fool you -- credit cards can be an amazing financial tool. Many of them earn rewards in the form of cash back or points and may include big sign-up bonuses. There are also cards that offer complimentary protections on your purchases, like extended warranty coverage.

Your experience with credit cards all depends on your spending and payment habits. If you spend more than you can afford and carry a balance, you're going to get charged credit card interest. That's usually expensive, and it makes your balance harder to pay off. But if you only spend what you can pay back, and you pay your card's full balance every month, then you won't be charged any interest. That's how savvy consumers make credit cards work for them.

If you've been carrying balances on any cards, see our list of the best balance transfer cards available today to pay off debt interest-free.

Most of us have probably been in this situation: You have something expensive to buy. Maybe it's holiday gifts, or a vacation, or a new pair of shoes. But you have no idea how you're going to pay for it. You could dip into your emergency fund, take some money from your investments, or put it on your credit card, but none of those are great solutions.

The better approach is to think about what expenses you'll have coming up and save in advance. For example, if you know you want to take a vacation this summer, start saving now. Many of the top savings accounts even let you set up sub-accounts, which are a great way to categorize your savings for specific goals.

Even though it doesn't get touched on much in personal finance advice, knowing how to spend money is important. There's a lot of focus on using money for financial security, both by paying your bills and saving for the future. That makes sense, but you should also use your money to improve your quality of life in the present.

To get better at spending money, think about what kind of purchases will make you happy. The goal here is twofold.

First, it's to figure out the things that are really worth spending your money on. You could decide that what you want is to spend your money on a new hobby, or go on a trip without sticking to a strict travel budget.

By doing some brainstorming, you can also find areas where you're spending money that aren't worth it. Maybe you realize you've been paying for an expensive gym membership, but you'd be fine at a more affordable club with fewer amenities.

With so many financial products available, it's easy to overcomplicate things. Some people end up juggling too many rewards credit cards or bouncing from bank account to bank account for a 0.1% difference in interest.

Aim to simplify your finances where you can. Find quality bank accounts, credit cards, and a stock broker you like. Consider picking a passive investment product, such as an index fund. Automate your investments and your savings so you don't need to do it yourself. The more you simplify, the more time you can free up for yourself.

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