6 Money Habits To Set You Up for a Stress-Free New Year, According to a CFP
Written by
Laura Bogart
Edited by
Kristen Mae
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When the clock strikes midnight on Jan. 1, your world does not magically transform — though you may spring out of bed the next morning (or, you know, late afternoon) motivated to make it your year. Having a clean slate financially can help alleviate a major source of stress and set you up for success in all areas of life. But the temptations to spend big and often — especially during the holidays — can overwhelm you. So, how do you ensure your finances let you enter the new year with hope instead of dread at all the bills coming due?
Luckily, embracing smart money habits before the new year is far easier — and more fun — than drinking kale smoothies or prepping for a 5K. According to Taylor Kovar, CFP and founder of 11 Financial, making a few small yet strategic changes can make a big difference in your financial comfort — and peace of mind — in the new year.
1. Be Honest About Where You’re Starting
Whether you’re going over the river and through the woods to Grandmother’s house or toward a more successful financial plan, you need a map. And every map has a starting point. To chart the most effective course for growing your wealth in the new year, Kovar recommends taking a clear inventory of your finances.
Learning how you spend your money isn’t about self-recrimination; it’s about understanding how you can help yourself reach your goals.
“The biggest habit I’ve been talking about is simply taking a clear, honest look at where your money went this year and making a few decisions about what you want to continue and what you want to change,” he said. “When people finally pause long enough to look at their numbers, they usually feel more in control almost immediately.”
2. Start the New Year With One Financial Win
Kovar is a big believer in momentum. That’s why he encourages racking up one easy financial win before the new year to help bolster your confidence and get the good-habit train rolling down the track.
“Whether that’s setting up an automatic transfer, making a small increase to a retirement contribution or calling a service provider to negotiate a better rate … those simple actions build confidence and give you momentum heading into the new year without putting too much pressure on yourself,” he said.
3. Embrace Manageable Steps Instead of Massive Changes
One of the most common mistakes Kovar sees is the rush to overhaul personal finances all at once. This intensity can spark burnout — often before you see any real results.
“Instead of launching into a massive reset, it usually works better to make consistent, manageable adjustments, like reviewing subscriptions you forgot about, comparing insurance rates or making sure you’re getting your full employer match,” he said.
Though these improvements may feel small, you’re more likely to stick with them long term, which makes a meaningful difference.
4. Review Your Accounts Regularly
All too often — especially after the holiday spending rush — people make like an ostrich when it comes to their accounts, sticking their heads in the sand so they don’t have to confront reality. Kovar acknowledges that reviewing your accounts can feel stressful, but not knowing what’s going on with your money can lead to even greater stress later on.
“Ignoring it only increases the pressure,” he said. “Spending even a few minutes reviewing your accounts can stop problems from snowballing and give you a sense of direction again.”
5. Create a Short-Term Plan To Counteract Overspending
So, you overspent this holiday season. It happens — a lot. Kovar wants you to give yourself grace and know you haven’t derailed your entire financial plan. The best way to bounce back is to create a simple, short-term plan — think the next couple of months — that curtails some optional spending and focuses on one clear goal.
“When you take a step back and make space for a few small adjustments instead of trying to fix everything overnight, you’re much more likely to stay with it,” he said. “Overspending doesn’t have to be a setback. Sometimes it’s just a reminder to realign and start fresh.”
6. Find Methods That Work for You
There’s a lot of advice out there about achieving financial goals like saving more or paying off debt. And it’s easy to feel like a failure if that advice just doesn’t work for you.
“A lot of people get frustrated because they try to follow whatever method worked for someone else,” Kovar said. “The truth is that everyone thinks about money differently, and the habits that feel natural to one person might feel impossible for the next.”
Working with a financial advisor can help you better understand your own tendencies and identify the financial strategies that you’ll actually stick with.
“When you understand your own tendencies and the way you naturally make financial decisions, it becomes much easier to create a plan that actually fits your life instead of fighting against it,” he said. “Once the plan fits, staying consistent becomes a lot more realistic.”
Final Thoughts
You can blaze into the new year with big goals for yourself and your money, but sometimes small actions — like understanding where you are financially and finding behaviors you can stick with — will have the biggest lasting impact. It’s better to know your own habits, find an expert you can trust, and build a plan that supports both your finances and your peace of mind.
Need a little extra holiday magic in your budget? MoneyLion is giving away $2,000 a day for 50 days starting Dec. 5 — a real way to breathe a little easier this season. Sign up and see if this festive windfall lands under your tree.
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