This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.
As the calendar flips to a brand-new year, there’s no better time to take control of your finances to set yourself up for success in 2026 and beyond. Whether your goals include paying down debt, prepping for a PCS, saving for a big purchase, or just feeling more confident about your money, 2026 can be your year to make it happen. The key is a clear plan and the right tools.
Here are 10 smart budgeting moves to help you start strong and stay on track all year long.
1. Visualize your financial landscape.
Before you can create a plan, you need to know where you stand. Your first mission, should you choose to accept it, is to schedule a time for a budget meeting with yourself or with your partner. Put it on the calendar and stick to it. This is the time to review your income, expenses, debt, and savings. Use a tool like Navy Federal Credit Union’s My MakingCents, which helps you see the full financial picture at a glance. It is a great first step in understanding what’s coming in and what’s going out. Plus, it gives you clarity to make better money decisions.
2. Set clear financial goals.
Goals give your budget purpose. Start by identifying what you want to achieve this year, like building an emergency fund, paying off credit card debt, or saving for a family trip. Break your goals down into short-term (6-12 months) and long-term (1-5 years) categories. Clear, measurable goals will keep you motivated and focused throughout the year.
3. Create a realistic monthly budget.
Once you know your financial picture and goals, it’s time to build a plan that fits your lifestyle. Here is one way you could do it:
- Start by writing down your total income coming in each month (this includes paychecks, BAH, side hustles, etc.).
- Next, list your fixed expenses (like rent, car payments, and insurance) in one column. In the next column, list your variable expenses (like groceries, gas, and entertainment).
- In a third column, record your debt and savings monthly payments. Next, take the totals from all the columns and subtract them from your total income to see the difference.
It is good to see on paper how much is going in and how much is coming out every month. In addition, you could use Navy Federal’s My MakingCents tool to create budgets for specific accounts based on your average spending and needs.
4. Track and categorize every expense.
Now it’s time to do the work by tracking and categorizing every expense. Yes, every expense. Why? Because tracking where your money goes can be eye-opening. You might not even realize how much you are spending on Candy Crush, or there might be accidental transactions you wouldn’t have caught otherwise. Use a budgeting app or your bank’s mobile tools to categorize expenses, such as dining out, groceries, or subscriptions. A great option for this is Navy Federal’s app1 and online banking tools to make the process simple and automated. Seeing exactly where your money goes each month helps you identify habits you can adjust and areas where you can cut back to save.
5. Manage subscriptions and recurring payments.
This is a big one! Streaming services, digital subscriptions, and memberships can be the silent but deadly budget assassin. You may think $9.95 every month isn’t too bad, until you realize you are spending hundreds every month on multiple subscriptions. Review your recurring charges at least every quarter and cancel anything you’re not using regularly. Cancel streaming services if the show you watch on them is on hiatus. See if you can pair subscriptions to save money (like getting Paramount+ for free when subscribed to Walmart+). Those small amounts can add up to hundreds of dollars in savings every year.
6. Choose which debt payment method works best for you.
If you’re carrying debt of any kind, map out your strategy to pay it down now. First, list out all of your debts according to amounts and interest rates, then choose your pay-down method. There are two ways to attack:
- The avalanche method: Pay off the highest interest debt first to save money over time.
- The snowball method: Pay off the smallest debt first to gain momentum and motivation.
Once you pay off a card or loan, start using that money towards the next debt. It will accumulate more and more to help you pay back debt faster. You can also explore consolidating your debt or refinancing at a lower rate with your credit union to make payments more manageable.
7. Build (or rebuild) your emergency fund.
An emergency fund provides peace of mind and financial security. Aim to save three to six months of essential expenses in a separate, easily accessible account. If that feels overwhelming, start small, saving $25-$50 every month. Even micro-payments build good habits and add up over time.
8. Review your credit and loans.
A new year is the perfect time to check your credit report for errors and see where you can improve your score, or see if refinancing could save you money or interest. Navy Federal members, for example, can explore personal loan and auto refinance options that align with their financial goals.
9. Automate your savings and payments.
Saving money can take time, but remember to always pay yourself first. Make saving and paying bills as effortless as possible by setting up automatic transfers. Direct a portion of your paycheck into savings before you even see it, then budget off the remaining amount. Automation helps you stay consistent and prevents missed payments or forgotten goals.
10. Revisit and adjust regularly.
A great budget doesn’t stay the same; it is a growing, living thing that evolves with your life. Review your budget monthly and make adjustments as needed. Did your utility bill increase? Did you get a promotion and a pay raise? Are you needing to spend a little more on groceries each month when egg prices skyrocket? Adjust your numbers so your budget always reflects your current reality. Use the start of each season as checkpoints to review your progress and reset if necessary.
Bonus tip: Celebrate your wins to keep momentum
Budgeting doesn’t have to feel miserable, and it doesn’t mean you automatically cut all fun out of your life. Celebrate milestones like paying off a credit card, hitting a savings target, or sticking to your grocery budget for three months straight. Recognizing your progress keeps you motivated. And prioritize your money to allow for fun as well.
Starting strong in 2026
A new year offers a clean slate and the opportunity to take control of your financial future. With these 10 budgeting moves, you can set realistic goals, stay organized and make your money work smarter for you.
Remember, tools like Navy Federal’s My MakingCents can help you get a complete view of your finances and guide you toward smarter decisions all year long. By tracking your spending, managing debt and saving intentionally, you’ll not only start 2026 on the right foot, you’ll also finish it feeling empowered and in control.
1 Message and data rates may apply. Visit navyfederal.org for more information.
This content is intended to provide general information and should not be considered legal, tax, or financial advice. It is always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.