The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.<\/p>\n
NerdWallet has a weeklong challenge for you. We\u2019re guiding readers through one practical money task a day for seven days to help start off the new year strong.<\/p>\n
If you can finish the challenge, you\u2019ll be well on your way to more financial wellness in 2026.<\/p>\n
Day 1: Cancel subscriptions you don\u2019t need<\/p>\n
There are subscriptions for music streaming, audiobooks, retailers, food delivery, fitness and so on. How many services are you paying for? Are they all must-haves? Probably not.<\/p>\n
Here\u2019s how to pare down:<\/p>\n
Make a list of your subscriptions.\u00a0Check your credit card charges to find all of the services you have and how much they cost.\u00a0Decide which services aren\u2019t worth keeping. Maybe Netflix isn\u2019t so appealing now that you\u2019ve finished \u201cStranger Things,\u201d or your freezer\u2019s overflowing with steaks that you can\u2019t use up fast enough.\u00a0Sever those subscriptions.\u00a0Log in to your online account for each membership and look for a cancel option. You can Google \u201ccancel [service name]\u201d to find instructions. You can also use the NerdWallet app\u2019s subscription and bills feature to view and cancel subscriptions.<\/p>\n
Once you\u2019ve trimmed subscriptions, think about how you might put the money you\u2019ll save to better use. Pay down some holiday debt. Pad your emergency fund. Start saving for something else. The choice is yours.<\/p>\n
Day 2: Set up sinking funds<\/p>\n
A sinking fund is just a dedicated savings account that you contribute to all year long for a specific purpose. That way, the money is there for you when you need it. It\u2019s different from an emergency fund<\/a>, which is designed to handle unexpected costs like emergency car or home repairs.<\/p>\n Popular sinking fund purposes include summer camp, holiday spending and vacations.<\/p>\n Here\u2019s how to set up sinking funds for the year:<\/p>\n Review your upcoming expenses.\u00a0It might help to look back over the\u00a0previous year\u2019s spending<\/a>\u00a0to remind yourself of any big costs \u2014 especially ones that only come around once or twice a year. Any expenses that exceeded your budget or caused you to turn to debt in order to finance them could be good candidates for a sinking fund.Create a savings account \u2014 either within your existing financial institution or at a new one.\u00a0The ideal spot for a sinking fund is a\u00a0high-yield savings account<\/a>\u00a0that is easy to access and free of any minimums or fees.\u00a0Start your contributions.\u00a0Some sinking fund users like to set up automatic monthly transfers so the accounts slowly build throughout the year until you need them. You can also manually transfer money into the accounts after you receive extra payments like a tax refund or bonus.Day 3: Check your credit reports<\/p>\n Errors on credit reports can harm your credit score, and may be a sign of identity theft<\/a>.<\/p>\n Even if all of the information in your reports is correct, reviewing it is still worthwhile. If you plan to apply for a new credit card or loan this year, it\u2019s good to know what lenders will see.<\/p>\n Ready to check your reports? Let\u2019s get started.<\/p>\n Pull free copies of your credit reports.\u00a0You can\u00a0use AnnualCreditReport.com to request free credit reports<\/a>\u00a0from the three major credit bureaus \u2014 Equifax, Experian and TransUnion \u2014 online. You\u2019ll need to provide some personal information for verification.This option is the fastest, but you can also request reports by mail. NerdWallet offers a free weekly TransUnion credit report online.Read the details carefully.\u00a0Check the names, dates, addresses, accounts, balances and inquiries in each report. Review any negative information, such as collections or bankruptcies, too.Dispute anything that looks off.\u00a0Don\u2019t see anything wrong? Great! But if you do, make sure to\u00a0dispute the errors<\/a>\u00a0with the relevant bureau or bureaus.\u00a0<\/p>\n Checking your credit reports won\u2019t affect your credit scores, but it could help you protect them.<\/p>\n Day 4: Freeze your credit (or check your freeze status)<\/p>\n A credit freeze<\/a> \u2014 also called a security freeze \u2014 blocks lenders from accessing your credit reports. That means if someone tries to open a new account in your name, the lender won\u2019t be able to see your file, and the application will be denied.<\/p>\n Here\u2019s how to freeze your credit \u2014 it\u2019s free:<\/p>\n Gather your information:\u00a0You\u2019ll need your full name, date of birth, current address and Social Security number. Some credit bureaus may also ask for a copy of your ID (like a driver\u2019s license or passport) or a recent utility bill or bank statement.Contact each credit bureau:\u00a0Equifax, Experian and TransUnion each manage their own credit freeze process, so you\u2019ll need to make the request with all three. The quickest way to request a freeze is online by creating an account with each bureau, but you can also call or mail in your freeze request.\u00a0\u00a0Thaw only when needed:\u00a0Your credit will stay frozen until you decide to lift the freeze \u2014 for example, if you\u2019re applying for a mortgage, car loan or new credit card. You can temporarily unfreeze your credit for a set period (say, two weeks), and it will automatically refreeze afterward.<\/p>\n Not sure if your credit is already frozen<\/a>? Log in to your accounts at each bureau and look for the security freeze section. You\u2019ll see your status and can freeze or thaw as needed. You can also call to find out your freeze status.<\/p>\n Day 5: Review your beneficiaries<\/p>\n A beneficiary is simply the person (or people) you\u2019ve picked to receive your assets when you die. You generally name a beneficiary<\/a> on things like retirement accounts, life insurance policies, investment accounts and bank accounts.<\/p>\n Beneficiary choices override your will<\/a>. That means even if you\u2019ve updated your estate plan, your old beneficiary picks still stand.<\/p>\n How to update your selections:<\/p>\n List all of your accounts that have (or could have) beneficiaries. Note each individual retirement account, investment account, bank account, life insurance policy, 529 plan, annuity, and health savings account, flexible spending account and any other account that has a beneficiary election.\u00a0Log in to each account.\u00a0Look for account settings and beneficiary selections. If you can\u2019t find the right spot, give the company a call for direction.\u00a0Check your primary beneficiary.\u00a0If it\u2019s not the person you want (or no one is named), update information to reflect your current choice. You can have more than one primary beneficiary.Add a contingent (secondary) beneficiary.\u00a0Just as things can happen to you, things can happen to your primary beneficiary, so choose a backup (or backups).\u00a0Day 6: Boost your retirement savings<\/p>\n Let\u2019s talk about goals. According to a recent NerdWallet survey<\/a>, 19% of Americans plan to increase their retirement savings in 2026. Is that you?<\/p>\n \u201cWhatever you can do, just start now,\u201d says Fahmin Fardous, a certified financial planner based in Parsippany, New Jersey. \u201cThe perfect time doesn\u2019t come, and if it does come, it comes a little too late.\u201d<\/p>\n These questions can help you figure out where to start today:<\/p>\n Are you getting free money?\u00a0Does your employer offer to match a percentage of your 401(k) contribution? \u201cIf they are giving you a match and you\u2019re not contributing up to the match, you are essentially losing money,\u201d she says.Can you max out?\u00a0The IRS increased 2026\u00a0401(k) contribution limits<\/a>\u00a0to $24,500, up $1,000 from 2025. \u201cLet\u2019s take advantage of that,\u201d Fardous says. Consider upping your contribution to the max, she says. If you want to ease in, you can do an automatic increase of 1% every year, she says. And it\u2019s not like open enrollment. You can revisit and increase your contribution amount throughout the year.Do you have a Roth IRA?\u00a0If you\u2019re a\u00a0HENRY<\/a>, and you have a 401(k) at work, your income might be too high for you to get a tax deduction for contributing to a traditional IRA, Fardous says. Think about opening a Roth IRA and contributing for tax-free growth, she says. Single tax filers with a modified adjusted gross income of less than $153,000 can make a full Roth IRA contribution in 2026. (If you\u2019re married filing jointly, your MAGI must be less than $242,000 to make a full contribution.) You can contribute $7,500 in 2026 if you\u2019re younger than 50. If you\u2019re 50 or older, you can contribute $8,600.What else can you do?\u00a0If you make too much to contribute to a Roth IRA, you can think about contributing to a backdoor Roth IRA, Fardous says. If you\u2019ve done all of this and want to boost your retirement savings even more, you can see if your employer offers an after-tax 401(k) option. You can also open a brokerage account if you want to invest further. The sooner you bump up your retirement contributions, the more time you have for compound interest to work its magic, she says.Day 7: Accelerate debt payoff<\/p>\n The number of consumers carrying a credit card balance hit 174.8 million in the third quarter of 2025, according to a report from credit bureau TransUnion. Are you one of them? Like with exercise, the best way to make progress on debt is to start moving.<\/p>\n Pick up the pace and pay less interest over time. Here\u2019s how to do it:<\/p>\n Check your emergency fund:\u00a0If you don\u2019t have an emergency fund, you may need to build up some savings first. That can mean paying minimums on debt until you have at least a starter fund of $500 to $1,000. Even a small amount can save you from going deeper into debt in the event of an unforeseen expense.Pay more than the minimums:\u00a0If your emergency fund is set, increase the amount you put toward your loans to pay them off faster. You can make it manageable by paying more on one debt at a time. Keep up with the minimums on the rest.\u00a0\u00a0\u00a0Get a quick win to build steam:\u00a0Try the\u00a0debt snowball method<\/a>\u00a0if you find small victories motivating. Make a list of all your debts from the smallest balance to largest. Tackle the loan with the smallest balance first, then move to the next.Focus on high-interest loans to save more: To save more money in the long run, try the\u00a0debt avalanche method<\/a>. List out your debts from highest interest rate to lowest and pay extra on the most expensive loan first. For example, you\u2019d put extra money on a credit card with an exorbitant APR over a buy now, pay later plan that doesn\u2019t charge interest.Consider debt consolidation:\u00a0A 0% interest balance transfer credit card is one way to consolidate the debt if you have a credit score of 690 or above. Ideally, you\u2019ll pay off the total balance during the promotional period to cut down on interest and simplify your life.\u00a0<\/p>\n Maintain your momentum as the year goes on, and get financially fit.<\/p>\n Nerds Kate Ashford, Amanda Barroso, Pamela de la Fuente, Kimberly Palmer and Tommy Tindall contributed to this article.<\/p>\n More From NerdWallet<\/p>\n Lauren Schwahn writes for NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.<\/p>\n