Through Jeffrey McKinney
December 17, 2025
A good basis for building prosperity in 2026 is to examine what has worked in previous years and improve on it this year.
With 2026 just around the corner, evaluating your financial status can be critical to ensuring your finances fuel wealth building.
The upside is that there are many actions you can take to grow your savings, protect investments, and reduce debt in the new year. By starting now, you can see where you are in achieving your financial goals. Just as important, you can see what adjustments are needed.
As such, you are better positioned to deal with an unexpected crisis, such as job loss, high medical bills, or significant home repairs.
To help achieve financial stability, a good starting point is to assess what has worked well in the past and improve it this year. Conduct a thorough assessment to set achievable goals.
Another important factor is that you remain committed to achieving your milestones. Creating a weekly or monthly checklist, discussing strategy regularly with a financial advisor, or speaking with a family member or friend for accountability can help you figure out if you’re making progress. Sourced from BLACK BUSINESS research, the actions may include:
Consider a savings account with a high return
This could be beneficial even as the Federal Reserve recently cut interest rates. Please note that this must happen in early 2026 and not later in the year. The Fed’s rate cuts are being implemented slowly and in small doses. That could have less impact on the higher rates this rare account typically pays its savers. And remember that online savings platforms and fintech companies, with lower operating accounts, often pay more on these accounts than regular banks. And it is expected that this will continue to be the case.
Automate savings
This can be a good place to build your savings, especially if you have regular automatic deposits. By treating this bill the same way you pay fixed costs like a mortgage, rent, or car note, you may be able to grow your money seamlessly.
Make a budget
Be proactive in monitoring where your money goes and look for ways to cut unnecessary expenses. Remember, it’s never too late to boost savings if you don’t do it now. Be vigilant in reducing car loans, credit cards, student loans, and other potential debt.
Set up an emergency fund
Many people who don’t have this essential fund end up withdrawing money from checking or savings accounts, especially when something unforeseen or a disaster happens. It is recommended that you build up at least three to six months of expenses to provide this assistance.
Fund 401(k) or IRA
These accounts can help you save for retirement and reduce your taxable income. Take a Roth account, for example. Although contributions are taxed, your withdrawals are generally not taxed in retirement.
Discover compound interest
This happens when you earn interest on your original principal and on the interest accrued over time. For example, high-yield savings accounts, money market accounts and CDs can compound money. In general, a higher return on your investment results in your money growing faster. Consider discussing compound interest with asset managers and investment advisors.
Take advantage of new tax benefits
Legislation passed earlier this year offers numerous breaks that can help individuals save money when filing taxes for 2025. One of them is a $6,000 bonus deduction for those age 65 or older. More information here.
Look at other ways to increase income
By doing this you can overcome financial problems. Spreading your income can come from a variety of sources, including starting a side job, freelancing, consulting or part-time work. The extra money can increase your primary income.
Research investments
Make sure your asset portfolio matches your investment risk tolerance, planning horizon and financial pursuits. Consider investing in multiple asset classes, such as stocks, real estate and fixed income, to limit risk. If necessary, contact investment experts to reallocate your investments based on market fluctuations.
Eliminate existing debt
This can be beneficial if you have high-interest debt. For example, pay off high-interest credit card debt first and make minimum payments on other debts. Consolidate credit card debt at a lower annual percentage rate or 0% for as long as possible to erase debt before interest charges.
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