6 Financial Tasks to Tackle in the New Year

It’s the start of a new year—have you thought about what financial improvements you’d like to make? Top resolutions for money include saving more (53 percent), pay down debt (51 percent), and spend less (35 percent).

A study revealed that people who set goals and write them down are 1.2 to 1.4 times more likely to accomplish them than those who don’t.

Now is the best time to write down your goals and describe in detail what an accomplished goal looks like.

Here are six financial tasks to help you get started in the new year.

1. Create a debt payoff plan

Make a plan to strategically pay off your debt in a certain time frame. If you have credit card debt with high interest, start there.

Save money on interest by consolidating your debt into one with lower interest. Consider using Upstart to get your debt payoff plan started. Upstart offers personal loans with rates that may be lower than credit card rates.

By consolidating your debt with Upstart, you’ll have one payment each month. There’s also no prepayment penalty if you decide to pay the loan off early.

2. Set up a monthly budget and track every penny

You know you need a budget but most likely don’t have one. A survey revealed that 93 percent of Americans believe in having a budget but only 33 percent actually have one.

Start by listing your monthly spending and take-home pay from the last three months so you can see all of those numbers in one place. These include:

Rent/mortgage
Utilities/cell phone/WiFi
Car payments
Student loan(s)
Memberships/subscriptions
Groceries
Shopping/restaurants/entertainment

After you write down your income and expenses, consider using a free online tool to help you keep a watchful eye over your money. These tools allow you to link all of your accounts in one place so you can easily track your spending and saving.

Setting this budget will help you:

Understand where your money is going each month
Provide a foundation for how to save more and spend less
Control of your money so you can meet your goals

After you’ve created your budget, it’s time to start saving. If you’re currently saving (at a traditional bank) but don’t have an online savings account, consider opening one.

Not only do many online savings accounts have higher interest rates, but they’re often free to open. Digital banks make it easy to sign up online and can allow you to create “sub-savings accounts” that you can label specifically for a goal, such as moving or your next vacation. Then it’s a matter of setting up automatic deposits to make the process even easier.

A budget is simply a detailed breakdown of how much you’re spending relative to what you’re earning. It can be an eye opener for small expenses that may add up and eat into your spending each month. Ultimately, a budget should help you build a better relationship with money.

3. Save for an emergency fund

An emergency fund is a safety net so you don’t get financially crushed by unexpected events such as getting laid off, expensive dental work, or car troubles. Having the funds is crucial so you don’t have to use your credit cards (and rack up debt), or borrow money from family or friends.

Two factors you need to save for an emergency fund include forming the habit and time. If money is tight you can start in small amounts. Do it consistently and increase the amount over time.

4. Start investing for the long term

Do you know how much you’ll need when you retire?

Vanguard founder Jack Bogle stresses that investing for the long term through low-fee index funds is a great way to grow your money. Billionaire Warren Buffet believes an index portfolio of 90 percent S&P 500 and 10 percent Treasurys is the best bet for most investors.

Both have wisely advised to keep it simple and with index funds, as they generate the highest returns for the lowest risk.

Here are three investment accounts to consider for growing your money, long-term:

Traditional 401(k)

A 401(k) is a savings plan offered by your employer that allows you to take a portion of your paycheck and invest it, while deferring the income taxes on the saved money until you withdraw the money at retirement.

If your employer offers a 401(k), consider signing up. If you’re already making contributions, consider increasing the amount or max it out. In 2020, you can contribute up to $19,500. The best way to invest in a 401(k) is to make sure you’re contributing enough to get your employer match. Employer matching can be from a few percentages to 100 percent. This is free money!

Roth IRA

A Roth IRA is an individual retirement account that allows you to save after-tax income of $6,000 per year. If you’re over the age of 50, you can contribute $7,000.

The earnings on a Roth IRA are tax-free and withdrawals are also tax-free, as long as you make the withdrawals after the age of 59 ½.

Traditional IRA

This is slightly different from a Roth IRA, since your contributions may qualify for a deduction on your tax return. Your earnings may grow tax-deferred until you withdraw them at retirement.

Investors who choose a Traditional IRA believe they’ll be in a lower tax bracket upon retirement. This means paying taxes on a Traditional IRA may cost less.

5. Examine last year’s spending habits and make improvements

Go through your online statements and previous year’s budget to see how much you earned and how much you spent.

Look through categories of spending, such as groceries, travel, shopping, or restaurants. This helps you figure out how much you can cut back and set limits. For example, if you spent an average of $400 in restaurants each month, try cutting that amount in half. Put the extra $200 into savings.

Set measurable goals for how much you’d like to save. This helps you gain clarity and may keep you motivated to continue saving and spending less. Examples can include:

Saving $500 each month for your emergency fund so you can have $6,000 by the end of 2020
Paying off $2,500 in high-interest credit card debt

A few tangible ways you can jumpstart your spending and saving habits:

Pay off your debt. Start with credit cards, then work your way down to paying off car loans, student loans or any personal loans.
Try a spending freeze. Don’t spend anything that isn’t a crucial part of your monthly expenses, such as bills or groceries. See if you can make it 30 days without buying anything you don’t need.
Earn more money. Consider picking up a side hustle such as babysitting on weekends, freelance writing, tutoring, or driving for a ride sharing company.

6. Automate your savings

After you’ve created your budget, it’s time to start saving. If you’re currently saving at a traditional bank but don’t have an online savings account, consider opening one to reap additional benefits. Plus, if the savings account is out of reach, you may be less likely to dip into it. Setting up automatic deposits can make the process even easier.

Benefits of automating your savings:

Lessen the risk and temptation of spending
Save time while saving more over time

What money saving tasks will you tackle first?

Finding ways to improve your financial situation doesn’t need to be done all at once. Start with easy wins, such as signing up for your company’s 401(k) plan or increasing your contributions.

From there, start looking through your spending habits and see what improvements you can make this year, such as cutting expenses or increasing your income.

Check your finances weekly to see how you’re doing. Make small adjustments to stay on track throughout the year so you can reach your goals and continue to improve your finances.

Upstart Network, Inc. (NMLS #936133) is not a lender. All loans on its marketplace are made by regulated financial institutions.

All mortgage lending is conducted by Upstart Mortgage, LLC dba Upstart Home Lending. (NMLS #2443873). Equal Housing Opportunity.

Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model considers education: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
41% more approvals and 33% lower rates than a traditional model: As of publication in April 2026, and based on a comparison between the Upstart model and a hypothetical traditional model using Upstart data from Jan – Dec 2025. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
Unsecured Loans: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Loan amounts from $1,000 -$75,000: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.
Closing and funding timeline: In April 2026, 10% of funded HELOCs achieved a closing timeline of 2 days or less and a funding timeline of 7 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2025 Home Lending Study reports an average industry closing time of 37 days.
APRs from 6.2% – 35.99%, with 3 or 5 year terms: The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 17.50% and a 7.25% origination fee of $725, for an APR of 21.23%. In this example, the borrower will receive $9275 and will make 60 monthly payments of $252. APR is calculated based on 5-year rates offered in March 2026. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Instant deposits: To receive instant funding, your bank account must support instant transfers. If your account does not support instant transfers, funds will be available to you depending on your bank’s transaction processing time and policies.
Always On Commitment: We are committed to maintaining your credit limit as long as you continue to meet program eligibility and account requirements. To ensure the safety and security of all our members, we reserve the right to adjust or close lines in specific circumstances, including account default or late payments, suspected fraud, violation of our terms of service (including abusive behavior), or when necessitated by legal or regulatory requirements.
Cash Line draws: You may request a draw at any time. Only one draw may be outstanding at a time; after it is fully repaid, you may request another.
HELOC APRs as low as 6.52%: Terms shown here are subject to change without notice. APRs for initial advances range from 6.52% to 18.00% based on rates offered as of April 2026. The lowest rate is only available to consumers willing to become a member of a credit union and to those who meet a minimum FICO score of 780, CLTV under 70%, and DTI under 45%. Your actual rate will depend on many factors such as your credit history, combined loan-to-value ratio (CLTV), line amount, loan term, lien position, and property state. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
No annual fee, prepayment penalty, or fees to redraw: Terms shown here are subject to change without notice. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
2,500+ Variables:As of 3/31/2026. “Variables,” often also referred to as “features,” refers to raw variables and combined variables considered in our AI models. A “raw” variable is a non-combined, conceptually distinct unit of data, such as “applicant-reported savings.” A “combined” variable is data that has been transformed, combined, or otherwise engineered from a raw variable or set of raw variables, such as “applicant-reported savings” divided by “loan amount.
Fully automated loans: In Q2 2026. Percentage of Loans Fully Automated, which is defined as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans, and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.