After the glow of the holidays fades, the gifts are opened, and the credit card bills arrive, you may be ready for a financial reset. January is a natural time to start new financial habits, but if your to-do list is long, it can be hard to know how to get started.
Below, we’ll explore the best research-backed financial habits to start in January so you can start the new year off right.
This was never a bad It’s time to develop healthy financial habits, but January might be the perfect time to start new ones. This is because of what’s called the “fresh start effect.” This is a psychological phenomenon that explains the boost in motivation we get from a time reset, such as a new week, new month, or new year. This type of reset makes it easier for you to reflect, differentiate between the past and the future, and visualize yourself achieving your goals.
With your calendar by your side, use the start of the new year to develop some healthy financial habits. Here are some solid ways to get started:
Not only is the new year a good logistical time for setting goals, but it can also have emotional benefits. According to Fidelity’s 2025 New Year’s Financial Resolutions Survey, 65% of participants are optimistic about the new year and believe their finances will be better in the coming year.
To set yourself up for success in 2026, set specific goals and develop a plan to achieve them. For example, instead of saying you want to “save more,” your goal might be to increase your savings rate from 5% to 10% by the end of the year. Your plan might include increasing your savings rate by one percentage point every two months until you reach 10%.
Other example goals to get you thinking include:
Whatever your goal is, make sure it’s realistic. Fidelity’s survey results show that among respondents who successfully achieved their 2025 financial resolutions, the top reason for their success was that their goals were realistic and easy to maintain.
Read more: Why your financial resolutions never stick and what to do about them
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% of participants who tried to negotiate their utility bills received rate reductions or other benefits in bundled plans.
Early January is a good time to see if you can temporarily pay your bills, as this is when your expenses typically increase (whether due to annual fee increases, gas and electric increases, 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 be contacted by the Cancellation or Customer Retention Department. These are usually the people who have the power to lower your bill.
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If you’re a long-term, loyal customer, let everyone know.
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Ask if you qualify for any promotions or discounts.
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Once you’ve reached a deal you’re happy with, put it in writing.
Remember, patience and kindness go a long way when asking for what you want.
Read more: Your guide to bill negotiation: How to secure lower rates and save money without cutting services
With tax season just around the corner, January could be the ideal time to increase your superannuation contributions. Fidelity’s 2025 Quarterly Retirement Analysis found that 17.4% of participants increased their 401(k) contributions in the first quarter of the year, while only 4.9% decreased their contributions.
In this analysis, Fidelity noted that while the first quarter of 2025 “posed challenges for retirement savers,” they largely stayed the course and continued — and even intensified — their saving behavior.
Often, you can increase your retirement savings without making meaningful changes to your current lifestyle – it’s a win-win. Come January, why not give it a try? At the beginning of the year, increase your contributions by one percentage point. If within 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 longer you’ll have to reap the benefits.
Read more: How much do you really need to save for retirement?
As well as increasing your pension contributions, the beginning of the year is also a good time to revisit your budget. Why? As mentioned above, January is a common time for bills and other expenses to increase. At the same time, the first month or quarter of the year is also a popular period for salary increases. Whether your income increases or your expenses increase, your budget needs updating.
Here’s how to get started:
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Check your existing budget. See where you’re spending the most, assess your progress toward savings goals and paying down debt, and look for spending you no longer need or want.
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Update on fund inflows. If you recently got a raise, make sure it’s reflected in your budget. Likewise, if there are any other changes to your salary (for example, you may have had an increase in your superannuation), take this into consideration as well.
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Add or reduce spending and saving categories. Did you sign up for a gym membership, cancel Netflix, or make other changes to your monthly expenses this month? If so, edit your budget categories so they accurately reflect your expenses heading into the new year.
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Plan 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 per month, you’ll save $2,000 by June.
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Recalibrate the numbers. You also can’t add or subtract line items from your budget without adjusting the numbers. For example, if you add a new expense to your budget (such as a $50 gym membership), you must reallocate $50 from elsewhere to pay for it. Play around with the numbers until everything checks out. If things feel tight, you have 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 take another look at your budget. Check in and make adjustments every time your income or expenses change, you hit one of your savings goals, or your current plan isn’t working.
Many financial experts recommend checking your credit report at least once a year to make sure it’s error-free. When you’ve sat down at the beginning of the year to negotiate bills, review your budget, and set financial goals, you might as well check your credit as well.
Don’t skip this task: A recent survey from Consumer Reports and WorkMoney found that 44% of respondents who successfully checked their credit found errors. Errors on your credit report can have significant financial consequences, such as difficulty qualifying for credit cards and loans or renting an apartment. Spotting these errors allows you to dispute them and correct them.
Here’s how to do it:
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Visit annualcreditreport.com.
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Request a free report from the three major credit bureaus: Experian, Equifax, and TransUnion. (You are entitled to free reports every week.)
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Review each report to make sure your personal and account information is correct and up to date.
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If you find any errors, contact the credit reporting company to file a dispute (you can do this online or by phone). Then, 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 natural reset of the new year to establish financial habits that will serve you all year long. But don’t put too much pressure on yourself. If a habit wears off—as it sometimes does—don’t give up. Instead of adopting an all-or-nothing mentality, aim to improve your financial situation without demanding perfection. Any step in the right direction will benefit you in 2026.