How to set financial goals you’ll stick to in 2026

With Christmas just around the corner, you might already be thinking about what you want to achieve in 2026 and how you can make life better for you and your loved ones.

According to a YouGov poll in December 2024, more than a quarter of UK adults planned to make new year resolutions for 2025.

While health improvements such as ‘exercise more’ and ‘lose weight’ were common, the most popular goal was to ‘save more and spend less’. In fact, of those who made new year resolutions, 29% set some kind of financial objective.

However, findings published by Psychology Today reveal that around 80% of people give up on their resolutions before the end of January.

Thankfully, there are steps you can take to give yourself the best chance of success. Keep reading to learn how to set meaningful and achievable financial goals you’ll actually stick to throughout next year.

1. Focus on what matters to you

In today’s world of mobile phones, social media and 24-hour news, it’s almost impossible to avoid the influence of societal expectations, trends and the lives of others.

Perhaps you’re chasing the ‘dream retirement lifestyle’ your friends have, or maybe you’re keen to follow the latest investment trend for fear of missing out?

It’s human nature to want to fit in and ‘keep up with the Joneses’. However, this ‘herd mentality’ could lead you to set goals based on what you feel you should do, rather than what really matters to you.

Unfortunately, if your new year resolutions focus on external rewards, such as societal approval, you’re much less likely to stick to them. In contrast, the Yale School of Management reports that ‘intrinsically motivated’ goals – those you pursue for personal enjoyment and satisfaction – are much more powerful and enduring.

As such, it’s crucial that you align your 2026 goals with your core values and bigger, long-term objectives – be they to retire early or leave a lasting legacy for your loved ones.

It might help to ask yourself:

• How will achieving this goal make me feel?
• Will hitting this goal get me closer to the future life I want?

2. Get to know your numbers

Understanding your current financial situation is a crucial step towards setting goals that are both challenging and realistic.

Establishing a baseline will also allow you to chart your progress throughout the year so you can learn from mistakes and celebrate your wins.

If your finances are complicated and you find it hard to get an accurate overview of where you are currently and what this might mean for the future, your financial planner can help by:

• Listening carefully and asking key questions to draw out essential information
• Analysing and evaluating your finances to give you a clear picture of your current position
• Helping you understand your attitude to and capacity for risk
• Supporting you in defining meaningful financial goals.

A key element of this process is cashflow modelling, which allows us to provide a visual guide of your current and future finances. Often, our clients are better off than they thought!

Once you know your numbers inside out, you’ll be well placed to set meaningful and achievable goals for 2026.

Read more: Cashflow planning: What is it and how could it help you retire with confidence?

3. Be SMART about setting financial goals

Setting vague or unrealistic goals is generally a recipe for failure. You could avoid this mistake by following the SMART framework. This means creating goals that are:

• Specific – Have a laser focus on what you want to achieve so you know what success looks like.
• Measurable – Make sure there is an objective way to gauge your progress. Including numbers in your goal might help.
• Achievable – Set yourself challenging goals that could lead to meaningful change, but ensure they’re also realistic given the resources available.
• Relevant – Your 2026 goals should align with your values and move you closer to your longer-term, ‘big picture’ goals.
• Time-bound – Create a timeline of progress milestones and a final deadline for achieving your goal.

A good example of a SMART financial goal is: ‘I will save 10% more into my pension each month to keep me on track for retiring at 55.’

4. Build a strong support team around you

Money remains a taboo subject in many households, but talking to your partner and loved ones about your financial goals could ensure you have the support and motivation you need to succeed.

Saying your goals out loud to people you trust might also make you more accountable for sticking to your plan.

While it might not seem like a festive conversation topic, the Christmas break could be an ideal time to have important money conversations with your family; most people have more free time and are feeling relaxed.

If you have a partner, creating shared financial goals allows you to pool your knowledge and skills to build the lifestyle you both want, now and in the future. You can encourage and motivate one another to keep going if you face challenges or feel tempted to give up.

You might also benefit from speaking to your financial planner. They can provide an objective perspective and use sophisticated tools such as cashflow modelling software to help you visualise how your 2026 goals could impact your long-term finances.

Indeed, checking in with your financial planner throughout the year might be a powerful strategy for keeping you on track and helping you adjust your goals in line with changing circumstances.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.