As we enter 2026, the prices of various products and services are expected to rise. We all need to prepare and update our household budgets to avoid falling into financial difficulties that could become overwhelming.
What can you do? How can you prepare? Here’s a list of practical recommendations to help you navigate the months ahead:
Build an Updated Budget: Create a detailed budget for the coming months that includes all your expense categories. Use data from your bank account statements and credit card app information. You can use budget calculator tools to track your expenses easily and stay on top of your finances.
Increase Your Income: Since expense categories are likely to grow, explore whether you can increase your income at work through a salary raise request, adding extra shifts, or taking on additional work. Look for temporary income opportunities that can help you navigate the upcoming period successfully.
Electricity and Utilities: Compare prices from different utility providers in your area. This simple step could reduce costs by approximately 7% or more, putting meaningful savings back in your pocket.
Banking and Account Management: Compare different account packages, negotiate with your bank to reduce fees or interest rates, and explore the possibility of switching to another bank where you might pay less. Taking control of your banking relationship can lead to significant savings.
Stay Vigilant: Regularly check your bank account to ensure there are no unauthorized charges or unfamiliar expenses, and verify that all bills have been paid on time. This proactive approach prevents surprises and keeps you in control.
Smart Credit Card Use: Try to consolidate your expenses onto one credit card, even if it’s through an app. This helps you maintain better control over your spending and gives you a clearer picture of where your money goes.
Payment Plans: Try to avoid paying in installments whenever possible to prevent overloading your monthly expenses. Splitting payments can create cumulative debt, create the illusion that purchases are cheaper than they actually are, and of course, cost you high and expensive fees, especially in the case of credit.
Loans, Part 1: Never take a loan with just one click without thoroughly checking the associated costs, interest rates, and fees you’ll be paying. Ask to know what the monthly repayment cost will be, not just the interest rate, and make absolutely sure you have the ability to repay it.
Loans, Part 2: If you do need to take a loan, research where it’s most advantageous by comparing banks or credit companies. Check the possibility of getting a loan from your employer or against your retirement savings or pension fund, or consider borrowing from family members who might offer more favorable terms.
Manage Your Savings: If you’re experiencing cash flow difficulties, consider pausing contributions to savings accounts temporarily. If you have liquid savings, consider withdrawing them. This is exactly the right time to use them instead of increasing your debts to banks with expensive interest rates.
Smart Shopping: Beware of sales and temptations, including online shopping. Shop safely and wisely for what you truly need, not necessarily what’s being offered to you. Not every sale is worthwhile. Always check cancellation and return policies before making purchases.
Food Shopping: Buy food according to your household size and actual needs. Research shows that we throw away approximately 30% of the food we purchase. It’s a waste to throw away money on food that ends up unused.
Subscriptions: Cancel or pause unnecessary subscriptions or those you’re not actively using. Review and compare prices from telecommunications providers to ensure you’re getting the best value.
Seek Professional Advice: Consult with financial professionals, ask questions, and gather information so you can make informed financial decisions that align with your goals and circumstances.
Remember, taking control of your finances now sets you up for success throughout the year. These steps may seem small individually, but together they create a solid foundation for financial wellbeing. You have the power to navigate these changes confidently and emerge stronger. Start today by choosing one or two actions from this list, and build from there. Your future self will thank you for the care and attention you’re giving to your financial health right now.
