I’m a Financial Advisor: These Are the Money Mistakes To Avoid in 2026
Written by
Laura Bogart
Edited by
Kristen Mae
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Turning a New Year’s resolution into a daily reality is a learning process. Knowing what not to do in meeting any goal — from getting physically stronger to saving more money — can be just as valuable as knowing exactly what to do. Just as you figured out that hours in the sauna won’t instantly make you healthier (darn!), you also need to identify which money mistakes could quietly derail your progress this year.
Fortunately, you have help. To understand the money moves that will cause you more frustration than fulfillment in 2026, GOBankingRates spoke with Taylor Kovar, CFP, founder and CEO of Choose 11. Kovar shared clear guidance on the behaviors to avoid for a happier, wealthier new year.
1. Making Decisions Too Quickly
For many people, market swings, talking-head chatter on TV and angsty headlines about the economy can feel overwhelming — and that anxiety is like a starting gun going off in their minds. They’ve got to act, and they’ve got to act now.
Kovar understands the impulse. Still, he says reacting to short-term market moves or news cycles instead of slowing down and thinking strategically is a costly mistake. Even reacting to positive trends can backfire if you’re not careful. Remember, what goes up must come down again.
“That shows up as chasing whatever seems to be working lately, spending a little more freely because things feel fine right now, or changing plans without really stopping to ask whether it fits their bigger picture,” he said. “A lot of stress could be avoided by taking a step back and getting clearer before making moves.”
2. Forgetting To Plan
People are more prone to impulsive decisions when they’re not following a clear, understandable financial plan. A well-defined plan acts as a filter, helping you decide what deserves your attention and what doesn’t.
Working with a financial advisor to develop an approach that aligns with your short- and long-term goals can provide both structure and accountability. Without that plan, you may be more likely to chase trends or follow influencers who don’t know your financial situation or priorities.
“Trying to jump in and out at the right time or piling into one idea because it’s been working lately often creates more regret than progress,” Kovar said. “In my experience, it usually works better when people stick with a plan they understand and adjust slowly when needed, instead of making sharp turns.”
3. Neglecting To Diversify Your Portfolio
When an investment is performing well, it can be tempting to double down. As Kovar puts it, “When something keeps working, it’s easy to believe it’s a sure thing.” However, overconfidence can lead you to take on more risk than you need to — particularly by putting too much into one stock or sector.
“Most problems I see come from being too concentrated, not from being too cautious,” he said.
Diversification remains one of the most reliable ways to manage risk and smooth out volatility over time. Working with a professional can help ensure your investments reflect your goals, time horizon and risk tolerance, not just what’s performed well recently.
4. Getting Too Comfortable With High-Interest Debt
Kovar says he has recently noticed more people carrying high-interest debt for longer stretches of time. And they’re getting a little too comfortable with making only minimum payments, leaving them in debt longer.
“The payments may feel manageable month to month, but the balances tend to hang around longer than expected, which makes it harder to get ahead,” he said.
Instead, you should prioritize paying down your high-interest debt. Research strategies like the snowball method and find one that you can stick with.
5. Failing To Build Generational Wealth
The money moves you make — or don’t make — in 2026 don’t affect only you. They can shape your children’s financial confidence and habits for years to come. Point blank: Kids can’t practice what they’re not taught, including effective money management. If you haven’t made financial literacy a family value, now’s the time.
Fortunately, parents in the digital age can turn to family-centered money tools and apps to help build their teenagers’ money management skills. For example, the popular money app Cash App offers a “Families” feature that lets families set up teen accounts, giving kids hands-on experience using debit cards, saving money, sending funds and even investing, all with built-in parental oversight.
Whether you’re using digital money tools or simply talking through money decisions, prioritizing money conversations reinforces healthy financial habits over time — and those habits are what ultimately support generational wealth.
6. Taking On New Monthly Payments Too Easily
Perhaps you’ve just gotten a raise and feel it’s time to treat yourself. You’ve wanted a new car for a while — and that new addition to your home would be nice. Heck, you’d settle for an upgraded smartphone, even if you don’t technically need one.
The impulse to splurge is natural. Still, Kovar cautions against adding large, recurring monthly payments to your plate. If your financial situation changes, these big-ticket items can limit your flexibility. He asks people to consider whether they’d still be comfortable with the purchase if their income dipped or other costs kept rising.
“Money just feels tighter and less predictable than it did a few years ago. Interest rates are higher, everyday costs are still creeping up, and a lot of expenses feel harder to plan around,” he said. “Because of that, people don’t have as much margin for error as they once did. That doesn’t mean everything is bad, but it does mean decisions need to be a little more thoughtful and a little less rushed.”
The Bottom Line
To start the new year off on solid financial footing, it helps to know which missteps to avoid — not just which strategies to follow. Stay calm and intentional in your decision-making, and you’ll be better positioned in 2026, while also setting your family up for long-term success for many new years to come.
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