With the end of the year fast approaching, many people will be looking to start taking control of their finances. This can be an expensive time of the year, so it is helpful to know how you can make a few positive changes that will improve your financial health heading into 2026. Keep reading to find out more.

Start with a Clear Review of Your Spending

First, you should review your spending for the year. Look back over the year and categories your expenses into main categories, such as essentials, subscriptions, nights out, food, etc. This will help you work out where your money is going and should highlight areas where you should start to cut back. Even just a few small changes could make a big difference by this time next year.

Set Realistic Financial Goals for the Coming Year

Setting realistic financial goals for the new year is smart, as it should help you stay focused and motivated throughout the year. People often set resolutions that they drop by March, so make sure you have something to work towards throughout the year, such as saving a certain amount by the end of the year. You need to make sure it is achievable so that you will stick with it over the next 12 months.

Streamline Your Bills & Cut Unnecessary Costs

One of the best ways to lower your monthly expenses is to streamline your bills and cut unnecessary costs. Cancel anything that you do not want or need, such as unused subscriptions, memberships, and streaming platforms. You should also compare your essential bills to see if you could save money by switching – this can be a quick and easy process that saves you a large sum over 12 months.

Boost Your Emergency Fund Before January Hits

You never know what life will throw at you, and sometimes it can be expensive. Having a healthy emergency fund can provide financial protection and peace of mind, so top this up ahead of the new year for financial resilience. Generally, it is recommended that you have between 3 and 6 months’ worth of expenses in any easy-access account.

Plan Ahead for Big Purchases & Annual Expenses

You should also think about 2026 and plan for any big purchases or large annual expenses, such as holidays, home improvements, car costs, and anything else that could throw off your regular budget. You can always apply for a loan for these expenses, which can alleviate the burden and spread the cost of large purchases/expenses.

Create a Simple System to Stay Organised All Year

Finally, make sure you have a system that will help you stay organised. Creating a monthly budget with a percentage of your income going towards different categories, monitoring spending with apps, and automating payments can simplify your financial management.

By following the advice in this post, you can reclaim control of your finances and set yourself up for 2026.