Build systems, not resolutions.
Building financial security through the fundamentals.
We’re almost a month into 2026. A fresh start to the year is no stranger to personal finance resolutions. As the year carries on, it’s not uncommon to see these goals flounder as life gets busy.
Today, I am going to outline some of my favorite ways to put finances in order. Not just once, but permanently. You’ll see that the common denominator here is the idea of a system. Systems work, and automation builds consistency.
Forget about what the market is doing this year. Buckle up. Allow automation to bring structure to your financial life.
Understand Cash Flows
The backbone of financial planning. Cash flows allow us to identify what an individual needs to be comfortable and what an individual can save.
I’ve mentioned this before and it may seem surprising, but I am not a fan of strict budgeting. Especially for young people.
Our lives are in flux. Things change on a dime. Employment, new connections, even something as simple as a spontaneous night out. There’s one constant between me and my friends at this point in time: we’re all getting busier. Any chance one of them has time to get a bite or grab a drink, I am in. I don’t let a $400 per month allotment for “dining out” govern my life.
I respect those with a strict budget, but I also see how this type of budgeting can become rigid and restrictive, constantly making someone second guess what they can do. Life is not lived within a spreadsheet.
For a very forgiving method of understanding cash flow, check out this old piece! Following this system can allow easy tracking of expenses month over month throughout 2026!
Build a Cash Reserve
To me this is a cornerstone of financial planning. General rules of thumb encourage 3-6 months’ worth of expenses saved as cash. This can vary between profession and the nature of a household.
Many view this as an opportunity cost. Sure, I understand that cash will likely not outperform investments over the long haul.
BUT this cash can be used for emergency and opportunity. This cash pads most things that life throws your way.
It allows us to avoid being forced sellers or forced borrowers when cash is needed. It can safeguard the retirement and investment accounts from needing to sell the lows or borrow money in a time of need.
Most high-yield savings accounts are offering ~3%! Those traditional checking and savings accounts usually offer much lower rates. The switch from traditional savings to HYSA can be meaningful for some!
Review Employer Benefits
There are not many free lunches in personal finance. But an HSA match and 401(k) match are arguably some of the lowest hanging fruits when we look to bolster our retirement savings.
Check in to ensure the full match is being received. These matches can be significant. These matches are quite literally the closest thing to “free-money” that most will ever see!
It is also not a bad time to double check the investments within the retirement accounts. Are they aligned with your risk tolerance?
Do they need to be more diversified? Do they just need a quick rebalance given the market performance last year?
Always a good idea to check in on these items, and hey, while you’re there, check the beneficiary designation as well.
Build Systems
Whether it is saving to a 401(k), HSA, Roth IRA, or brokerage account, automating the savings and investment can allow us a much better chance of sticking with it.
When we view our savings as if they are expenses, something that must occur, it can be easier to stick with it. Additional points to those who are not only automating the investment deposits but also the trading as well!
Building this habit early in a career can give a great financial foundation when income increases.
Removing the emotions behind depositing and trading an account lets us stray from whatever potential financial catastrophe the financial media is covering that week. We know that whether the market is up or down, we are consistently investing each month.
Again, it is the action over the amount. Small amounts to build the habit can be helpful in dipping our toes into the water of the world of markets.
As income grows, steadily increasing these investments is key. At the beginning of our careers, growing our savings rate is one of the main focuses. Pair that with automated, long-term investing and we’re on track to accumulate wealth.
To me, these 4 topics are a great place to begin the year. Rather than giving ourselves the opportunity to make human errors, systems can keep us grounded in building financial routines.
Soon enough, these resolutions will just become ordinary behavior and that is where we want to be.
This is for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of publication and are subject to change without notice. Past performance is not indicative of future results.