2026 Financial Goals- Different Fiscal Friday, December 26, 2025
Like everyone else, I have no crystal ball to predict how high prices will go, taxes will increase, and whether my appliances and car will need major repairs or replacements. I also don't know what health changes may happen. I had a recent dental, followed by a lab/ vitals check-in appointment this past Monday with unfortunate news, but will be managed, albeit with more appointments and probably medications.
Now that I'm on a fixed income, my goals need to reflect watching the little things and plugging spending holes, but allow me to pursue a few dreams and aspirations. I know as well as anyone that tomorrow is not promised. This is not meant to be a "woe is me" post but rather a taking command post, and leveraging opportunities despite the unknown.
Here's my first pass, subject to review at least quarterly.
- Update my spending plan to accommodate increased health care costs, both in insurance and out of pocket costs and prescriptions that will not be fully covered.
- Update spending plan to include sinking funds categories of appliances/tools, needed household items, and roof replacements as anticipated over next five years.
- Update long term savings account/ CD's plan for accrued interest for taxes, spending, reinvestment. There is likely a major investment coming by summer that I think will be good for my whole family, but the timing needs to be right.
- Earn at least an additional $3,000 of side money. This will hopefully cover next year's holiday spending and top off the travel budget, plus it will help with progress towards the next goal.
- Increase emergency fund to at least 6 months. This is separate from long term savings and I'm about one month shy. To do this, some spending needs to tighten up so therefore goals within this goal include:
- Reduce H and G budget by 10% on average, per month. I invested in a chest freezer, have figured out best prices for stocking up at big box stores, and will tailor menus to be more health and comfort and less convenience.
- Take two on trying to get a garden going or supporting my daughter getting more yield.
- Review and reduce any unused or minimally used subscriptions.
- Reduce meals out to no more than two times per month. It's not realistic to decline all, but keeping a few, but cutting out "lazy" outings, should help redirect to other line items.
- No purchase of new clothes other than Sketcher shoe replacement (I need good walking shoes), a supportive swimsuit, and under garments. I have plenty of clothes for all seasons and might just need to invest time in refreshing combinations.
- Look at how to reduce energy consumption across all areas, including transportation. Maybe I can keep these expenses from rising by reducing my consumption.
- Maximize any and all rewards and rebates and direct to existing expenses.
Those seven steps should result if done right, $175 a month of savings without changing my quality of life and over the course of a year, is nothing to sneeze at. I'm ending the year with a different kind of anxiousness from last year when I officially gave notice of retirement. I've never felt as truly alone in my life financially; inflation in every bit of my 2025 expenses grew higher than I accounted for and only me to manage. Whining won't change anything. My comfort is in that I at least have no debt and some money set aside. I suppose this comes with retiring early, second guessing myself that it was the right call. I don't need advice as I have "experts" using their skills and knowledge. I just need to build trust in myself and find ways to squash the anxiety. Putting things in text helps me feel more control and like I'm steering towards rather than being dragged into the new year.
Sounds like a great plan! Yes, I have kept working 3/4 time despite being almost 66 now bc of my work health insurance and the hot mess that our retirement insurance has been this year bc our employee retirement health insurance plan switched providers and it has been awful for retiree employees! So thankful I kept working 3/4 time to qualify to be on the working employee health insurance plan! What happens in the next year or two will determine when I retire and it is mostly about our retirees health insurance plan. I really don’t want to have to go on standard Medicare plan when our retiree plan had traditionally been excellent. You are so right, things can change on a dime! I had not anticipated this retiree provider switch! That coupled with inflation has caused my complete retirement to be put off. My taxes tripled on the property where my disabled son lives and my car and house insurance doubled! I didn’t see that coming this soon after “retiring” from full time work in 2022 to 3/4 time. To be real, I would have stayed at full time if I had known how all of this would have played out in the last three years. Hindsight is 20/20 so I am not going to backseat quarterback it and am making adjustments. I do have three trips planned for this year, one out West to see grandkids, one to Tampa to visit relatives, and then a week at our local beach. I am satisfied with that at the moment as the plane trip out West, the local beach trip, and the hotel in Tampa have been paid for already. I do need to increase savings for my emergency fund, as you mentioned. I hope you have a splendid year and lots of fun and enjoyment! Cindy in the South
ReplyDeletePerhaps you and I just need to have faith in ourselves. When you retire, do you need both houses, or could one be a rental and earn a bit of income? Could you do some of what you do freelancing ( I'm very ignorant as to what your job entails)? Will the 67 she market get you enough SS that offsets your co-payment for the better retirement health plan ( that's what I count on my husband's SS for ). It's just a hot mess though, isn't it?
DeleteThe one residence is for my middle son with the mental health issues, the one who burned down my retirement home. Without going into too much of his psychiatric issues, he is similar to the Reiner’s son except mine is far more on the psychiatric side and far less on the drug side. He needs to be safe but not close to family bc he will attack us when in a deranged mental state. I don’t talk about the financial burden of dealing with him bc I consider it like dealing with a physically handicapped kid, and folks are far more sympathetic to that than they are to someone with serious mental health issues. So no, I can’t get rid of that residence which keeps him safe. I have adjusted my life around this fact and so has his dad to a certain extent. This is not a woe is me post, it is simply stating the reality of dealing with severe psychiatric issues and the lack of good facilities for such people. Now the retirement insurance bugs me bc I planned well but my state employer changed my game plan!!! I could open up my
Deleteown private practice if I choose and have not because I love our very cheap regular state employee insurance plan. None of the Medicare plans that are this cheap cover what my state employee plan covers. So, I feel staying where I am is the best course currently. Cindy in the South
Cindy, I know you are not looking for sympathy or congratulations on how our are navigating this, but I will share just the same that you are doing a really incredible job handling an extremely challenging situation. Hugs to you for managing through this & doing your very best to support your kid & the rest of your family, regardless of what that looks like. - Hawaii Planner
DeleteI echo HP's sentiments. I knew I was ignorant raising the possibility about both the house and freelance. You certainly do not need to give any reason to me or anyone else. You truly are doing valiantly.
DeleteOh wow, Cindy, you do have a lot on your shoulders. I remember you saying that your retirement house had burned down, but I didn't want to pry. I'm sorry that there are few resources for those with disabilities and mental health issues. I really hope that things will improve.
DeleteAdd me to the Cindy, You Rock team! :D
Oh wow! Thank y’all. Cindy in the South
DeleteI would love to join you as you navigate retired life . Like you , it’s now just me , and I need to pay attention to my financial life as it needs to last and also help out my kids when needed . My “ downfall “ is shopping - impulsive shopping to make me “ feel better “. It doesn’t work - I just feel poorer
ReplyDeleteBut less thoughtless shopping is a goal for 2026
Siobhan x
We both have plenty of space the other can stay if you'd like to experience Minnesota. I'd not recommend winter though...that's hibernation time and too much temptation to find indoor places to shop.
DeleteYour plan is solid. I will be watching to see how it pans out. Love your Blog. Jean
ReplyDeleteThanks, Jean. It's nice to read from a new friend and I'll check out your blog.
DeleteKudos for your reflections and solid thoughts about 2026 finances, from basics to enjoyment. As I watch the year wind down, I know I need to do the same thing. Your post inspires me to set some goals!
ReplyDeleteI think few people can be complacent with their money. If they can, I won't begrudge them their enjoyment. Life can be tough without treats and things to look forward to, but not to just be or have a burden later.
DeleteIt looks like you have taken a lot into account already in your planning. Having a 6 month emergency fund and sinking funds will hopefully help you feel more in control. Kudos for planning ahead.
ReplyDeleteI think seeing that topped off will really feel like a security blanket. I'm close. Having a sinking fund for the roof and potential appliance and car replacement down the years will help too.
DeleteGreat plans come from great awareness. I totally can relate to the comfort with your decision. It took me about 2 years to feel that I retired at the right time (age 58). Anxiety is real!
ReplyDeleteIt's only been 9 months and already huge changes from my initial budget. Yes, I'm trying to be very aware starting immediately.
DeleteI think you've almost completed a full year retired right? That should allow you to have a better feel for your annual finances, although with inflation going the way it is, it's still hard to deal with. My taxes are likely going up about €250 per month this year (thanks Macron) but since I know I'm in a much better position than many round here, I just have to deal with it and I'm sure there are places I can and should cut back anyway! The most important thing is to be informed. Not that we always like that information, but at least we can plan for it. You're a great planner and I'm sure you'll do wonderfully. Happy new year to you Sam!
ReplyDeleteNot until May really as it was April 8th when I retired so May first month with no income. I don't want to increase my withdrawal even for inflation at least for now, so that means watching the pennies or rather the nickles as we won't have pennies soon. Happy New Year to you too.
DeleteIt sounds as though you've got a good plan in place.
ReplyDeleteI really need to tighten belts this year, not depriving ourselves, but just looking where money is going and decide what's important to us and what's not, as we start to slide our way into retirement.
I think it's realistic to make changes and tweaks as you navigate your way through the beginnings of retirement.
I think we all are looking for the waste and leaks, while trying to keep a good life going. I'll be sitting down looking at Amazon orders, cupboards, purging bags and seeing where wasteful, unneeded and not spending on cherished items came from. I'd rather it go to plane tickets and hotel or house rentals.
DeleteYou’ve done some very well thought out and detailed planning here. Upping your emergency fund to six months is a great idea and will hopefully help with the feeling of uncertainty. Insurance is one of our biggest expenses here across the board. Bailey has really had a rough time with it as she is self employed and the premiums continue to rise. I hope you meet all of your goals for 2026. I’ll be reading along to cheer you on.
ReplyDeleteI didn’t hear back from Linda on the email I sent her. Have you heard anything new?
Nothing from anyone about her. I am good at sleuthing but don't know her or Tommy's last names to do so to teach out in other ways. Insurance is the worst. My son basically has no health insurance as it's major medical, so everything is out of pocket before absolute catastrophe. And it's still a fortune even with Minnesota having some investment in public marketplace.
DeleteIt sounds like you have exactly the right mindset for this. there will always be inflation and things we cannot control - but there can also be creative thinking and choices! I should sit down with my expenses and do the same thing - decide how to proceed while I still have the choice to do so!
ReplyDeleteCreative thinking is the way to manage, and lowering expectations as to what is considered a need and compromising on wants. December was a huge spend month following a month of vacation. Buy, Jan- March I have modest needs and wants ( as big expense of trip is already paid for). I think a single seltzer at trivia, homemade foods for book clubs,streaming movies, bundled walks, simple meals will be the norm and with a thankful heart I have them all. Fingers crossed I can keep that attitude and not feel deprived.
DeleteYour balance on earning & spending goals seem really reasonable & doable. We will be here to cheer you on! - Hawaii Planner
ReplyDeleteThanks, HP. This community has really helped me navigate several stages of life. Frugal retirement is just the current one.
DeleteSounds like you have good plans in place! I'm so glad that you have been able to enjoy some travel during retirement. I'm sure you will be able to increase your emergency fund to 6 months, and that will offer more peace of mind.
ReplyDeleteHealth insurance costs keep going up, otherwise we would be looking at retiring earlier. Hopefully there will be some changes during the midterm elections.
Wishing you the best in 2026.
It shouldn't be work until you're too tired or have other health issues to do what you want with the last 25-30% of life. This administration truly has no plans other than for rich to get richer and poor to die earlier and for racism and bigotry to be acceptable. I truly hope something changes and those that FAFO realize it and make better decisions.
DeleteI review expenses every January and cut any subscriptions that I'm not using. I do a "No Spending January" where I don't buy "things." I buy groceries, cleaning supplies and entertainment, but not clothes) or things on sale that I don't really need. Some years I'm more thoughtful and track snacks out with friends. This year I'm also going to track what I spend on groceries for a baseline.
ReplyDeleteI'm aiming for low spend, trip aside and daughters birthday aside, to April. Then slowly see if there's room for a fall trip. Basically, aligning with your self no spend rules. Tracking will be a must for me.
DeleteI’ve also got some anxiety as well -had a couple of big expenditures this year and will need to be more budget minded. I am turning 70 and held off taking Social Security until then because my husband is 7 years older and I was able to increase my monthly amount substantially by waiting. I’m hoping to rebuild our savings a bit as we have been living on my husband’s monthly retirement and Social Security income as well as savings for big expenses. Our financial advisor has suggested that we start taking money out of my 401k/IRA account to avoid higher taxes when RMDs kick in for me. I have bag lady syndrome and get anxious about taking money out even though I saved diligently throughout my professional career.
ReplyDeleteI believe without changes, if I hold off to 70 I'll have quite a significant bump switching from my late husband's to mine. My pension from my last job starts in full at 66. So that's 6-10 years of belt tightening but also when I'm probably going to be the most agile. I watch my accounts like a hawk and hope the gains stay even withdrawals, but that I have cash to ride out down turns.
DeleteI get that. There's something about putting things to paper that I enjoy as well. Here's to you hitting goals and pivots as/when needed.
ReplyDeleteIt'll be an interesting year, but knowing at least that I am putting needs first should help me not get stretched should something important come up.
Delete❤️
DeleteGood for you though, keeping mindful of things is the way to make things happen or at least not let things get out of hand.
ReplyDeleteYes, not get out of hand. I'm aiming for a low spend quarter 1, then will reevaluate.
DeleteI echo Ur-spo's comment! xxx
ReplyDeleteNeed to keep trying for the travel budget too.
DeleteWow this is wonderful! Thank you for sharing these tips and inspiration!
ReplyDeleteNot very original, and tips from other more accomplished savers. I appreciate your comment.
DeleteI'm aiming for minimal grocery spending for as long as possible. The freezers and cupboards are groaning with food and it's a ridiculous situation. You can tell I rarely cook or eat proper meals and my daughter buys stuff without checking what she already has!
ReplyDeleteThat's easy to fonin the moment at the store. I get lured by deals, but at a certain point need to use what's here.
DeleteI am aiming for low/no spend January as well. Money just seems to disappear so quickly! I think starting out with a mindful outlook for the year is going to do wonders for you. I saw pasta on sale at a local store, and the limit is 6 packages so I may end up trying to go to two different locations to stock up on a few months worth of pasta!
ReplyDeletePasta seems to go on sale semi regularly here, but every penny saved helps. I think most of us are aiming to start 2026 with a mindset that we have no control of prices, but do have control how we spend.
Delete