New year, new you: How to clean up your finances in 2026

[While Silvia is a qualified financial planner, this blog is intended as general information and not as financial advice.]

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The new year signals a fresh start and, for many of us, that includes wanting to get a better handle on our money. The quieter weeks of January can be the perfect time to pause, reflect and put a few simple habits in place to help set yourself up for a calmer and more manageable financial year ahead.

We spoke with Silvia Pothoven, National Manager for Corporate Benefits at Gallagher – which partners with Bank Australia to offer staff access to financial wellbeing program MoneyFit – to gather some practical and realistic ideas to help get your finances in order for 2026. 

Start with self-compassion and kindness

Before diving headfirst into bank statements and budgeting spreadsheets, Silvia recommends starting with a mindset shift. 

Reviewing and tidying up your finances can feel daunting, so it’s important to approach this exercise with self-compassion and without judgement. “Cost of living pressures are affecting everyday Australians,” Silvia says. 

It can be normal to feel overwhelmed or frustrated, especially if your financial situation has changed or you’re getting used to new expenses like increased rent or changes in interest rates. “Times do get tough, and often the biggest hurdle is giving yourself permission to acknowledge: ‘I’m in a really tough situation, and that’s okay for now’,” Silvia says. “Once you can accept that, you can start looking for what to change.”

Make reviewing your finances into a party

If you struggle to actually sit down and get stuck into life admin, gather a few friends for a side-by-side group project. Set up everyone around your dining table or on your couch, with their laptops, phones, cards and ID, any paper bills or other documents needed. 

Ask everyone to list their priorities for the couple of hours you’ll spend together: they might include updating contact details, reviewing their insurance or utility offers, cancelling direct debits or memberships, and completing the rest of the tips in this article!

Set a Pomodoro timer to allow some social breathers, put on some music, enjoy some snacks and beverages and let the power of body doubling help you and your loved ones beat admin procrastination. 

Review your last 3 months, not the next 12

While it can be tempting to dive straight into planning mode, Silvia believes the first step to tidying up your finances is really understanding where your money goes. For that, she suggests looking backwards, not forwards. “Look back on the three months that are the most expensive for you, which is usually the summer months,” she says. “Then look at all of your accounts – savings, credit cards, offsets. Categorise all of your spending in ways that make sense to you, things like fixed costs, groceries, entertainment and eating out.”

By doing this, most people uncover spending habits they weren’t fully aware of. “People realise they’ve spent far more than they thought on certain categories,” she says. “It gives you insight, and once you see it, you can address it.”

Understand your debts, and pay them down where possible

If debt has been weighing on your mind and your bank account, Silvia suggests the best way to get a handle on it is to focus on what’s achievable and start small. “Every single dollar you can contribute to paying down debt – whether that’s a credit card, home loan or personal loan – reduces the total amount,” she says. “It’s doing the little bit now that will have the longer-term impact. The compounding effect of that over time is exciting – for me, anyway! You’ve got more income once you’ve paid that off.”

If you have multiple credit cards, Silvia suggests consolidating your debt and getting rid of the rest. “Don’t keep them functioning,” she says. “Cut them up and close them down, so there’s no temptation.”

Review your “set and forget” expenses

If you’re feeling the cost-of-living pinch, Silvia says one of the most effective ways to take back control of your finances is to regularly review the expenses we tend to forget about. 

This includes:

• Streaming services (“Do you really need all of them all the time? Chop and change as you go,” she says.)
• Utilities and internet
• Car, health and life insurance
• Subscriptions and memberships (like gyms, newspaper subscriptions and cultural memberships e.g. museums and the zoo.)

Silvia suggests reviewing everything annually. “If you haven’t reviewed your insurance in the last five years, it’s likely you’re paying 20-30% more than you should be,” Silvia says. “Markets change, companies compete for your business. Look at what’s available to you and use that to your advantage.”

Streamline your charitable giving

Many people want to contribute to causes they care about, even when money is tight. To balance generosity and affordability, Silvia suggests treating this expense like any other: make a budget and stick to it.  

“There are so many charities now that are worthy of every dollar that sometimes you just want to donate to everything,” Silvia says. “But if you don’t have much disposable income to give, it can get hard. It needs to be affordable for you.”

Silvia’s tip? Choose one or two charities that are meaningful to you for regular giving, then set a budget for ad hoc donations (like workplace fundraisers or supporting charity events). She adds that smaller, regular gifts like monthly donations often work best for both the donor and charities. “It’s easier on your hip pocket to spread it out, and it gives the charity a reliable stream of income.”

Brush up on any employer benefits

If you’re considering your salary, Silvia knows it can be tempting to go straight to applying for higher paying jobs – but this may not always be the answer. “Sometimes leaving a job for another five or ten grand isn’t always greener on the other side,” she says. “Look at what support your employer already offers.” 

Some workplaces offer financial wellbeing programs (including Bank Australia, through Gallagher’s MoneyFit initiative) or other reward schemes like shopping discounts, savings on health-related memberships or education tools that can help relieve pressure without needing to switch jobs. Plus speaking with your employer about internal career development opportunities, or a pathway to them, can end in a win-win for you and your workplace: they retain valuable team skills and knowledge and you make positive steps in your career.  

Set small, achievable savings goals

Whether you’re saving for a holiday, building an emergency fund or salary sacrificing into your super, Silvia suggests breaking your goal down into smaller chunks. “Put a little bit in and get used to it, then increase and build from there,” Silvia says. If your goal is building an emergency fund, Silvia recommends aiming for three months income (the typical waiting period on many income-protection insurance policies).

Most importantly, acknowledge your effort for doing this work, mapping out your financial goals and achieving outcomes as you go. “Celebrate when you hit milestones,” Silvia says. “It helps you feel like you’re actually getting somewhere.”

While Silvia is a qualified financial planner, this blog is intended as general information and not as financial advice.