Financial Health in 2026: 4 Commitments

You're not alone if you have set 2026 as the year to strengthen your finances.

We waited out the uncertainty of 2020 and 2021, many of us laying low - spending less and saving more. And then the spending kicked in, with ‘revenge travel’ and a subsequent spike in inflation. 

Queue the ‘cost of living crisis’ and people generally felt a bit lost. 

So now, there are significant opportunities for building wealth and establishing a solid financial foundation in 2026. If you would like to boost your financial position in 2026, consider these four commitments: 

1. Identify and create financial goals

Now is the time to get specific on what you want out of your finances. Successful businesses, families, and individuals plan for success, it doesn’t happen by accident. Set SMART (Specific, Measurable, Achievable, Realistic, and with a specific Time frame) goals if that works for you.

Or perhaps like you prefer BHAG (Big Hairy Audacious Goals)?

Or a focus word? Or a singular target? 

What do you want your life to look like? This determines what finances you need in one year, five years, 10 years, or at retirement.

What do you need to do to get there?

Do you want to buy a home?

Invest in property?

Afford childcare or private schooling?

Renovate your home?

Have you considered what lifestyle and income you want in retirement? 

You may map out what you need to do financially to reach your goals by identifying and considering them at every stage of your life. It's all about establishing a framework for accumulating wealth so that you can live the life you desire.

If you fail to plan, you are planning to fail.  

2. Develop good habits which are easy to maintain 

Adopting healthy habits that ensure you don't stray from your financial goals is the key to sound financial health. Making those habits as easy as possible to maintain, increases your chances of sticking to them. 

Keeping track of your expenses is an excellent place to start. Awareness is key. Some may even consider having financial buckets when setting up a spending plan. You can set a spending plan for yourself that is weekly, fortnightly, or monthly. A solid spending plan should account for all your regular expenses, such as rent, food, entertainment, health, insurance, vehicle costs, and transportation, as well as non-recurring items like gifts and holidays.  

The next step is to automate things. If you are using buckets or even just have a single savings account, set up direct debits to move money into the right spots on each payday. This makes it easy and more visual to monitor and manage the buckets and involves higher barriers when you must move money from your savings to another account if you have overspent. 

3. Make your money work for you 

Now is a great time to ensure that your money is working for you. 

Keeping too much cash on hand may not always be the ideal plan for those in the process of building wealth. Having a proper buffer is usually a good idea, but cash in a savings account earns little to no ‘real’ income with today's interest rates.  

Investing in real estate and or shares are common ways to build wealth. It's best to consult a financial advisor on structuring your investments to achieve your financial objectives. This might include a tax-efficient superannuation investment in shares to boost your long-term retirement savings. It could also mean using the equity in your home to buy a positive cash-flow investment property to cover the costs of your children's education in the future. 

If you are renting, the start of the year may also be a good time to start looking around for a more affordable place to live – get into the habit of keeping an eye out for something more affordable. 

4. Be smart with your money 

If you have high-interest debt, such as a credit card or a personal loan, your priority should be to pay it off before concentrating on paying off your mortgage or putting money aside into your superannuation fund.

This type of debt won't help you grow wealth, and the interest rates are generally significantly higher than those on other types of debt, such as a home loan or the returns you'd get from investing. 

If you owe money on your mortgage, you may be able to refinance to get a better rate.. Ask your mortgage broker or bank if they can find you a better deal.

Do you want to make these New Year's resolutions a reality? Because a goal without action remains a dream. 

For more of the guidance you need to protect your wealth with confidence, book a chat with our team.

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At Absolute Wealth Advisers, we help you optimise, grow, protect, and share wealth with purpose so you can live well today and leave a lasting legacy tomorrow.

We help people going through or emerging from *high net wealth divorce or inheritance who need help to simplify the complex, make sensible investment decisions in line with their values and relieve the administrative burden.

*Our client minimum is $10 million in assets.