With the start of the new year, many people are not just thinking about healthier habits or new hobbies; they’re also looking to focus on financial wellness.
According to Jesse Lineberry, assistant professor of practice and director of the Financial Planning Program in Virginia Tech’s Pamplin College of Business, the most important change people can make this year is being more intentional with their money.
“If someone only changes one financial behavior this year, it should be developing intentionality,” Lineberry says. “Taking the time to identify two or three financial goals and building a written budget to accomplish those goals can really help a family move the needle financially.”
When deciding which goals to prioritize, Lineberry recommends starting with the fundamentals: building an emergency fund, paying down high-interest debt, and ensuring adequate insurance coverage. “Once that foundation is in place, people can focus on longer-term goals like saving for retirement, a home purchase, or college,” he says.
To turn vague resolutions like “save more” into actionable plans, Lineberry suggests using the SMART goal framework — setting goals that are specific, measurable, attainable, realistic, and timely.
“Start by tracking your expenses and building a budget with realistic saving expectations,” he says. “Once the habit is established, it becomes much easier to increase your savings rate.”
Preparing for unexpected expenses is another key step. Lineberry recommends that families aim to save three to six months of expenses in an easily accessible account. “Even building up one month of expenses can go a long way in reducing stress when something unexpected happens,” he says.
Lineberry also encourages people to think long-term.
“Younger adults should focus on building strong habits now. ‘Lifestyle creep,’ which is our tendency to consume in proportion to our income, is real and can be a detriment to your financial future.”
For older people, Lineberry says they may benefit from working with a certified financial planner to navigate retirement, Social Security, and legacy planning.
Ultimately, Lineberry says the start of a new year can be a useful time to reset financially.
“It’s important to remember that building wealth requires consistency over a period of years rather than short bursts of resolve. As long as the momentum lasts and doesn’t get lost in the sea of New Year’s resolutions, January is the perfect time to sit down and lay out financial goals for 2026 and beyond.”
Virginia Tech
