Your Smart Money Guide for 2026 #1084

Jan 5, 2026

Dive into a fresh financial strategy for 2026 as the hosts encourage crafting your own financial future. Explore the Money Gears framework, starting with establishing an emergency fund of $3,045 and prioritizing debt repayment. Learn the art of frugality, shifting from saving out of necessity to saving for enjoyment. Delve into the K-shaped economy, emphasizing individual trajectories and resilience. Lastly, enjoy personal anecdotes on goals, family, and the importance of community in budgeting.

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ADVICE

Set A Theme And Share Your Goals

Write down goals, set a theme for the year, and revisit them often to keep momentum.
Make goals concrete and share them with partners or friends for accountability.

INSIGHT

Frugality Is A Lifestyle Choice

Reframe frugality as a skill that enables enjoyment, not deprivation.
Make saving fun by shifting identity and enjoying low-cost alternatives like thrift hunting or cooking at home.

ADVICE

Build A Small, High-Yield Emergency Fund

Save $3,045 as a starter emergency fund in a high-yield savings account to cover everyday shocks.
Use online banks with higher rates and fewer fees rather than big banks.

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New year, new outlook, and a fresh strategy for your wallet. Welcome to 2026!

In this episode, we’re setting the table for the year ahead. After the unique challenges and "did that really just happen?" moments of 2025, it’s time to stop reacting and start orchestrating your own financial future. We’re stripping away the jargon to talk about what actually matters: building wealth slowly, steadily, and with a craft-beer-level appreciation for the process. To give you a taste of what we’re diving into:

The Money Gears: We’re walking through the specific steps to take your finances from "survival mode" to "total optionality." From why exactly you need $3,045 in the bank to the moment you can finally start crushing some Money Gear 7 goals.
Frugality vs. Deprivation: Why "living small" is actually the secret to living large, and how to make the shift from having to save to wanting to save.
The K-Shaped Reality: We discuss why the "average" economy doesn't exist and how a bare bones budget is going to help keep you afloat.
Our own personal goals for the year, and more!

Whether you’re looking to get your time back, ditch the paycheck-to-paycheck cycle, or finally understand where your money is actually going, this episode is your roadmap for the new year.

Want more How To Money in your life? Here are some additional ways to get ahead with your personal finances:

Credit card perks: Check out our favorite credit cards that we use to maximize rewards and optimize our spending.
Other money nerds: Find a thriving community of fellow money nerds by joining the HTM Facebook group!
Newsletter: Sign up for the weekly HTM newsletter. It’s fun, free, & practical.
Money Gears: knowing what to do with your money is crucial to your personal finance journey.
MG7: and maybe you’re well on your way to financial independence but you’re looking for some financial reassurance, that’s when heading over to HowToMoney.com/Advisor and getting matched with a highly vetted financial advisor makes sense.

During this episode we enjoyed an If Only To Be Thoughtless Once More by Burial! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!

Best friends out!

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