5 Ways to Improve Your Financial Wellness in the New Year
Jan 28, 2026
Building good financial habits, even small ones, is a positive step toward improving your financial wellness and reaching your financial goals. Creating these habits isn’t necessarily about being perfect; it’s about being intentional and consistent. These small but significant steps can help reduce stress and build your financial confidence.
The beginning of the year is a natural time to reset your financial strategy and establish good habits. Continue reading to discover five steps that can help elevate your financial wellness in the new year.
Do Monthly Money Check-Ins
One of the simplest and most effective financial habits to build is performing monthly money check-ins. Staying up to date on the reality of your finances each month gives you the opportunity to identify issues in your plan sooner and correct habits that aren’t helping. Monthly awareness also allows you to make small adjustments when needed, rather than drastic changes later.
During your monthly review, compare your income to your expenses, including planned spending versus actual spending. This information helps you see where your budget may be falling short and where you might have gotten off track.
Set Up a Simple Savings System
Saving doesn’t have to be complicated, especially with direct deposit. The key is to create a system that pays you first before factoring other spending into your budget. This system should include savings for both emergencies and planned expenses.
It doesn’t have to be hundreds of dollars a week. Even small amounts—such as five to ten percent of your paycheck—can add up over time. In many cases, you can easily funnel a portion of your paycheck directly into savings through direct deposit.
Reduce High-Interest Debt and Costs
High-interest debt can quietly drain your income over time and should be paid off or restructured as quickly as possible.
The first step in tackling high-interest debt is to review your interest rates. Debts with the highest rates should take priority. From there, focus on increasing monthly payments toward those balances to reduce the amount paid in interest.
There are several options available to restructure or consolidate debt, such as using a personal loan or balance transfer to a lower interest rate. Choose a strategy and commit to sticking with it. Reducing how much you pay in interest each month can free up cash to put toward other financial goals.
Check Your Credit Health Regularly
Your credit report is both a measure of your financial health and a tool for unlocking better lending rates and greater financial flexibility. For that reason, it’s important to monitor your credit score regularly.
There are several no-cost options available to track your credit health. At HAPO, you can register for a free credit report within online banking in just minutes and then track and manage the factors that matter most. One major benefit of regularly reviewing your credit report is that it acts as an early warning system for new credit activity. Any newly opened credit lines, loans, or cards will appear on your report, alerting you to changes you didn’t authorize. This makes it one of the most effective tools for detecting identity theft early.
Automate Wherever You Can
One of the easiest ways to reinforce good financial habits is to automate as much as possible. You can automate savings transfers, credit and loan payments, and bill payments, which reduces stress and helps prevent errors such as missed payments.
Once set up, these automations allow you to continue making progress toward your goals with very little ongoing effort.
Our Challenge
Our challenge to you, our reader, is to choose at least two of these habits and put them into action starting now, in late January 2026. For example, schedule your first monthly money check-in for early February. Block 30–60 minutes to review last month’s accounts and identify one small adjustment, such as canceling an unused subscription. Then, set up one automation—like directing a modest percentage of your next paycheck to savings or auto-paying a recurring bill.
Track how these changes feel over the next couple of months. Many people find that mastering just two habits naturally creates momentum for the rest. Which two will you start with, and why?
If you’re looking for additional support and motivation, schedule time to meet with a HAPO Financial Coach—free of charge.
Matt Ward
Marketing Specialist |
matt.ward@hapo.org