I’m not sure if you feel the same, but to me, 2025 has flown by. It seems like just yesterday we were ringing in the new year, and now we are down to the final month. With the holidays approaching, we have very little time left to check off our goals for this year before we start drafting our resolutions for 2026.
Earlier in November, I met with someone who shared that their long-time financial advisor was retiring. Their main concern was simple but profound: “Am I actually on the right track?” It struck me that this is something their current advisor should have already made clear. It was a reminder that you need an advisor who looks at the full picture—from protection and savings to growth and legacy.
If 2026 is the year you plan to truly get your financial house in order, here are five key areas to focus on now.
1. Strengthen Your Emergency Fund
The general rule is to set aside 3 to 6 months’ worth of living expenses. This liquidity allows you to weather the storm of a job loss or major unexpected expense without derailing your long-term plans. If your income is variable or you work in an industry with high turnover, aim for the higher end of that range. We only have to look at the recent government shutdown to see how quickly stability can be threatened. Cash reserves keep your household stable when the world isn’t.
2. Increase Retirement Contributions
If you haven’t looked at your contribution rates lately, now is the time. At a minimum, ensure you are contributing enough to capture your employer’s full match—that is essentially free money. If you are already doing that, consider increasing your contribution by just 1% for the new year. It’s a small amount now that can make a massive difference later due to compound interest. Also, if you are over age 50, ask me about “catch-up” contributions to maximize your tax advantages before the year ends.
3. Eliminate High-Interest Debt
High-interest debt acts as an anchor on your financial progress. If you are paying double-digit interest rates to credit card companies, you are effectively negating the gains you might make in the stock market. Instead of helping companies pad their pockets, focus on a budgeting strategy to pay down these balances. Deferring spending today to clear the deck for tomorrow is one of the best gifts you can give your future self.
4. Review and Optimize Your Investment Strategy
While “time in the market” generally beats “timing the market,” you shouldn’t simply set it and forget it forever. When certain assets perform exceptionally well, they can grow to represent too large a portion of your portfolio, creating concentration risk. If that one “basket” drops, your portfolio suffers disproportionately. It is important to review your allocation annually to “rebalance”—selling some winners to buy undervalued assets—to keep your risk profile in line with your goals.
5. Update Protection and Estate Planning
Having insurance shifts risk from your life to the insurance company. With home prices surging over the last few years, your current homeowners policy might leave you underinsured. Tragically, many people also pass away without proper life insurance or an estate plan, leaving families with debt and legal headaches. As my friend and colleague Seth Connell, a local estate planning attorney, likes to say: “Everyone has an estate plan; it just depends on if it’s your plan or the government’s plan.” Don’t let a judge decide your legacy.
Let’s Get Started
If you want to make 2026 your best financial year yet, you don’t have to do it alone. Reach out to me, and let’s build a plan that covers every aspect of your financial life.
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Disclaimer: This article is for informational purposes only and is not tax, legal or financial advice. Everyone’s situation is different, so consult a financial advisor. If you would like to connect with me, call 615-619-6919 or email me at smoran@redbarnfinancial.com. You can learn more at redbarnfinancial.com.
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Photo, top, courtesy of Maksim Concharenok / Pexels
