9 Money Habits I’m Dumping In 2026
9 Broke Behaviors I’m Dropping In 2026 — Because Peace Costs Money
With 2025 coming to an end, it’s the perfect time to start focusing on the goals that will help us level up next year — and that definitely includes our finances. Money habits should be a priority every year, but with the economy shifting and politics impacting so much over the last 12 months, how we manage money has a bigger effect on our lives than ever.
Last year, I noticed some patterns quietly draining my wallet (and my peace of mind). So here’s my honest, real-world guide to the money habits I’m letting go of, and how you can swap them for smarter, more intentional habits that will help to make our cash flourish.
1. Overspending
Overspending often feels like self‑care in the moment, but it adds up fast. Trust me, I know! Next year, this bad habit will be tossed out like a rotten apple. A great way to stop this is by creating a budget that distinguishes needs vs. wants: the classic 50‑30‑20 rule (50% needs, 30% wants, 20% savings/debt) can help you stay in control of your finances.
Clearly list all of these items out and be honest with yourself. While it’s tempting to splurge on that fancy handbag with your “need” money, essentials like rent, groceries, and utilities should always come first. Once those are covered, you can realistically budget for splurges in your “wants” bucket by setting aside a little money each month.
As we step into the new year, I’m going to focus on the things that are truly essential for my everyday life and identify what I can actually live without. Here’s a strategy I started trying this month that might help you too: before spending on non-essentials, ask yourself, “Does this move me closer to my goals or further away?” For example, instead of going out for brunch every weekend, plan just one social coffee date and put the money you save toward something more meaningful later.
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2. Glorifying “Living for the Weekend.”
Spontaneous fun is awesome, but when every weekend costs a mini‑fortune, it’s time to hit pause and recalibrate. Swap impulsive plans for intentional ones: potlucks with friends, free community events, hikes, or museum days. Not only do these low‑cost options keep your social life vibrant without the financial hangover, but they also connect you with your community and give you a chance to make new friends or network outside your usual circles.
Honestly, with the rise of AI and all these fancy tech gadgets pulling us away from real human connection, I’ve been craving something genuine. There’s nothing like a house party or a casual hangout at a friend’s place to nourish your soul while keeping your wallet happy.
For a bigger reset, consider a professional-style spending detox — no non-essential purchases for a month. It’s a game-changer for spotting money leaks and building healthier habits.
3. Not Contributing to Retirement
Nothing hurts the future you more than putting off saving for retirement. Even small contributions add up dramatically thanks to compound interest. Trust me, I waited until my late twenties to get started, and I definitely regret it. The good news? It’s never too late to start.
Experts recommend starting early and contributing regularly, even if it’s a modest amount at first. For example, Fidelity, a popular investing platform, suggests setting aside about 15% of your income toward a 401(k) or an individual retirement account (IRA). You can automate contributions from your paycheck; this is called “pay yourself first,” and it turns saving into a consistent habit.
If your employer offers a company match, that’s free money that can boost your savings even faster. But don’t make the mistake of just leaving your money sitting in the account. To actually grow your retirement funds, you need to invest in stocks, mutual funds, or ETFs. Doing so allows your money to work for you and take full advantage of compound growth over time. If you’re unsure where to start, take a look at this list of quality stocks from Fidelity to get started. Always remember to research each company before purchasing.
4. Ignoring Credit
Your credit score isn’t just a number; it can open doors to better loan terms, lower interest rates, and increased borrowing capacity when you need it. Regularly check your credit report, set bill reminders, and pay any debt, like your credit card or student loans (Ugh… I know), on time.
Here’s what I have done to make life easier: I’ve set up automatic bill payments and alerts a few days before the due dates for these items, so I will never miss a payment. I’ll be carrying this habit into the new year.
5. Relying on One Income Stream
Only having one income source is like wearing flip‑flops in a snowstorm — risky! Diversifying your income can make you more resilient and help you stay afloat if you lose your job. Even a side gig like pet sitting, tutoring, or selling digital products creates extra cash flow.
Figure out what you’re good at outside of your 9-to-5 and try to pull in as much cash as you can from it. Extra cash not only makes life easier, but it also gives you more opportunities to save and invest. Start with a flexible side hustle that aligns with your skills, like online tutoring or freelance writing, and gradually grow it.
6. Too Many Impulse Buys
Impulse buying is the sneakiest budget boogeyman. Once you track real spending, you’ll be shocked at how often unplanned buys add up. As we step into the new year, now is the time to work on building better habits to help curb this money “ick.”
Here’s what I’ve been doing: I’ve been practicing the 30-Day Rule, which means you hold off for 30 days before purchasing non‑essentials. If you still want it later, great. Maybe that item will be marked down at a better price when you return. But if not, your savings are still intact.
7. Not Using a Financial Tracker
If you’re not tracking your money, you’re basically guessing. Logging every expense, even that daily coffee, gives you a clear picture of where your cash is actually going. I’ll admit, I’ve struggled with this myself, but thankfully, there are plenty of tools to help. Apps like YNAB, Monarch, or even a simple spreadsheet make it easy to see your spending patterns. Noticing recurring subscriptions you forgot about or realizing the true monthly cost of that gym membership can instantly free up cash for your bigger financial goals.
8. Putting People First Over Yourself
Being generous is wonderful, but not at the expense of your financial security. One way to manage this is by setting a specific helping budget each month, so you can give without guilt. And if that doesn’t cover every request, it’s okay. Sometimes you need to be honest with your loved ones. Let them know you have financial goals too, and while you want to help, you can’t always hand out cash.
As someone who’s naturally a giver, I’ve struggled with this, but I’m learning that honesty is truly the best policy. Most people understand when you can’t give, and they’ll respect you for it.
9. Build an emergency fund
Building an emergency fund is crucial. It helps us stay afloat when life throws unexpected curveballs. Think of it as a financial safety net that provides peace of mind and stability during tough times. Experts recommend saving six to 12 months’ worth of living expenses in a high-yield savings account so your money can grow while staying accessible.
Here’s a money-saving habit that I want to double down on in 2026, and one that might help you, too. As a girl who loves shopping and can splurge from time to time, I’ve made it incredibly hard NOT to save by having a portion of my paycheck sent directly to my high-yield savings account each month. I’ll be increasing this contribution next year.
This fund is essential because it can help you avoid taking on debt in emergencies, such as unexpected medical bills or a sudden job loss. I know finding extra money to save each month can feel tough, but it doesn’t have to be a considerable amount. Even $20 or less each month is a great place to start, whatever feels comfortable for you, until you’re able to contribute more to your rainy-day fund.
So, say it with me: 2026 is my year for intentional money moves! Which one of these habits will you be implementing next year? Sound off in the comments section.
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