The best financial habits to start in January — backed by data

After the glow of the holidays wears off, the gifts have been opened, and the credit card bills arrive, you may be ready for a financial reset. January is a natural time to adopt new financial habits, but if your to-do list is long, it can be tough to know how to start.

Below, we’ll explore the best research-backed financial habits to start in January so you can kick your new year off right.

It’s never a bad time to implement healthy financial habits, but January may be the perfect time to create new ones. That’s because of something called the “fresh start effect.” This is the psychological phenomenon that explains the motivational boost we get from temporal resets — for example, a new week, a new month, or a new year. This type of reset makes it easier to reflect, separate the past from the future, and envision yourself reaching your goals.

With the calendar on your side, use the beginning of the new year to adopt some healthy financial habits. Here are some solid ways to start:

Not only is a new calendar year a good logistical time to set goals, but it can also have emotional benefits, too. According to Fidelity’s 2025 New Year’s Financial Resolutions Survey, 65% of participants felt optimistic about the new year, believing they’d be in a better financial position in the year to come.

To set yourself up for success in 2026, set specific goals and create a plan to reach them. For example, instead of saying you want to “save more money,” your goal might be to increase your savings rate from 5% to 10% by the end of the year. Your plan could involve raising your savings rate by one percentage point every two months until you hit 10%.

Other sample goals to get you thinking include:

Whatever your goal, ensure it’s realistic. Fidelity’s survey results show that among respondents who successfully kept a financial resolution in 2025, the top reason they were successful was that their goal was realistic and easy to maintain.

If you don’t try to negotiate your monthly expenses, you could be missing out on hundreds of dollars of potential savings. According to a 2021 Consumer Reports survey, about 70% of participants who attempted to negotiate their utility bills got a rate reduction or another perk on their bundled plans.

Early January is a great time to see if you can catch a break on any bills, as it’s often a time your expenses will rise (whether due to annual rate increases or, in the case of gas and electricity, winter weather). Make a list of your monthly bills and start negotiating with these tips:

Research competitors so you can cite the lowest prices on the market — and actually be willing to switch providers.
Ask to speak to the cancellations or customer retention department. These are typically the people who have the power to lower your bill.
If you’re a long-time, loyal customer, make it known.
Ask if there are any promotions or discounts you qualify for.
Once you get a deal you’re happy with, get it in writing.

And remember, patience and kindness go a long way when asking for what you want.

With tax season around the corner, January can be the ideal time to increase your retirement contributions. Fidelity’s 2025 quarterly retirement analysis found that 17.4% of participants increased their 401(k) contribution in the first quarter of the year, while only 4.9% cut back.

In this analysis, Fidelity notes that even though Q1 of 2025 “posed challenges for retirement savers,” they largely stayed the course and continued — or even stepped up — their savings behavior.

Often, you can increase your retirement contributions without making a meaningful difference to your current lifestyle — a win-win. When January hits, why not give it a try? At the beginning of the year, increase your contributions by a percentage point. If, in 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 benefit from them.

Along with increasing your retirement contributions, the start of the year is 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 time to receive a raise. Whether you’re earning more or spending more, your budget will need a refresh.

Here’s how to start:

Review your existing budget. See where you’re spending the most, assess your progress toward savings goals and debt payoff, and look for expenses you no longer need or want.
Update inflows. If you recently got a raise, make sure it’s reflected in your budget. Similarly, if there are any other changes to your paycheck (for example, maybe you increased your retirement contributions), account for that, too.
Add or subtract spending and saving categories. Did you sign up for a gym membership this month, cancel Netflix, or make some other change to your monthly expenses? If so, edit your budget categories so they accurately reflect your expenses moving into the new year.
Plan for savings goals. If you set a new savings goal, it deserves a spot in your budget just like any other expense. For example, say your goal is to save $2,000 for a vacation by June. If you add a line item to save $400 each month, you’ll get to June with $2,000 ready to go.
Recalibrate the numbers. You can’t add or subtract line items in your budget without adjusting the numbers, too. For example, if you add a new expense to your budget — like a $50 gym membership — you’ll have to reallocate $50 from somewhere else to pay for it. Play with the numbers until everything checks out. If things feel tight, you’ll have to prioritize your most important expenses.
Don’t set it and forget it. January isn’t the only time you should revisit your budget. Check in and make any adjustments whenever your income or expenses change, you reach one of your savings goals, or your current plan just isn’t working.

Many financial experts suggest checking your credit report at least once per year to make sure it’s free of mistakes. While you’re already sitting down to negotiate bills, review your budget, and set financial goals at the beginning of the year, you may as well check your credit at the same time.

Don’t skip this task: A recent survey by Consumer Reports and WorkMoney found that of the respondents who successfully checked their credit, 44% found errors. Mistakes on your credit report can have major financial consequences, such as difficulty qualifying for credit cards and loans or renting an apartment. Finding these mistakes allows you to dispute them and make corrections.

Here’s how to do it:

Visit annualcreditreport.com.
Request free reports from each of the three major credit bureaus: Experian, Equifax, and TransUnion. (You’re entitled to free reports weekly.)
Review each report to make sure your personal and account information is correct and up to date.
If you find any mistakes, contact the credit reporting company to file a dispute (you can do this online or over the phone). Then, send a dispute letter to the company that provided the incorrect information. The CFPB provides a sample dispute letter you can use as a template.

Take advantage of the new year’s natural reset to establish financial habits that can serve you all year long. But don’t put yourself under too much pressure. If habits fade — as they sometimes do — don’t give up. Rather than an all-or-nothing mindset, aim to improve your financial situation without requiring perfection. Any step in the right direction will benefit you in 2026.

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