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

Once the holiday glow wears off, the gifts have been opened, and the credit card bills have arrived, 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 difficult to know how to get started.

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

is never a bad It’s time to implement healthy financial habits, but January can be the perfect time to create new ones. This is due to something called the “fresh start effect.” This is the psychological phenomenon that explains the motivational boost we receive from temporary 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 imagine yourself achieving your goals.

With the calendar on your side, take advantage of the start of the new year to adopt some healthy financial habits. Here are some solid ways to get started:

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

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

Other examples of goals to help you think include:

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

Read more: Why Your Financial Resolutions Never Come True and What to Do Instead

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

Early January is a good time to see if you can take a break on bills, as it’s often a time when your expenses will increase (either 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 quote the lowest prices on the market and actually be willing to switch suppliers.

• Ask to speak to the cancellation or customer retention department. These are usually the people who have the power to reduce your bill.

• If you are a long-time loyal customer, let them know.

• 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.

Read more: Bill Negotiation Guide: How to Get Lower Rates and Save Money Without Cutting Services

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

In this analysis, Fidelity notes that while the first quarter of 2025 “posed challenges for retirement savers,” they largely stayed the course and continued (or even intensified) their savings behavior.

You can often increase your retirement contributions without making a significant difference to your current lifestyle—a win-win situation. Come January, why not give it a try? At the beginning of the year, increase your contributions by one 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 will benefit from them.

Read more: How much do you really need to save for retirement?

In addition to increasing your retirement contributions, the beginning of the year is a good time to review your budget. Because? 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 an update.

Here’s how to get started:

1. Review your current budget. See where you spend the most, evaluate your progress toward your savings and debt payoff goals, and look for expenses you no longer need or want.

2. Update entries. If you recently received a raise, make sure it is reflected in your budget. Similarly, if there are other changes to your paycheck (for example, maybe you increased your retirement contributions), consider that too.

3. Add or subtract spending and saving categories. Did you sign up for a gym membership this month, cancel Netflix, or make any other changes to your monthly spending? If so, edit your budget categories so they accurately reflect your spending heading into the new year.

4. Plan your savings goals. If you set a new savings goal, it deserves a place in your budget like any other expense. For example, let’s say your goal is to save $2,000 for a vacation before June. If you add a line item to save $400 each month, you’ll arrive in June with $2,000 ready to go.

5. Recalibrate the numbers. You can’t add or subtract items in your budget without also adjusting the numbers. 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 works out. If things feel tough, you’ll need to prioritize your most important expenses.

6. Don’t set it and forget it. January is not the only time you should review your budget. Check in and make 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 reviewing your credit report at least once a year to make sure it doesn’t contain errors. While you’re already sitting down to negotiate bills, review your budget, and set financial goals at the beginning of the year, you can also check your credit at the same time.

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

Here’s how to do it:

1. Visit annualcreditreport.com.

2. Request free reports from each of the three major credit bureaus: Experian, Equifax, and TransUnion. (You are entitled to receive free reports weekly.)

3. Review each report to ensure that your personal and account information is correct and up to date.

4. If you find any errors, contact the credit reporting company to file a dispute (you can do this online or by phone). Then, send a dispute letter to the company that provided the incorrect information. The CFPB provides a sample dispute letter that you can use as a template.

Take advantage of the natural reset of the new year to establish financial habits that can serve you throughout the year. But don’t put too much pressure on yourself. If habits disappear, as they sometimes do, don’t give up. Instead of adopting an all-or-nothing mentality, try to improve your financial situation without demanding perfection. Any steps in the right direction will benefit you in 2026.