5 Financial Resolutions For The New Year Worth Sticking To

Overview

• Build a budget you’ll actually use (and track it)
• Do a ‘subscription and bill audit’ to stop money leaks
• Improve your credit score with consistent basics
• Use a personal loan as a planned tool for a one-off expense
• Create an emergency fund with your savings
• Bonus resolution! Consolidate your debts
• Turn New Year’s resolutions into sustainable financial habits
• FAQ

Here’s a simple tip if you’re new to budgeting: make sure it reflects your real life, not just the “perfect” week. Start small, and adjust it as you see what actually happens with your income and expenses. 

Keep it simple, realistic, and easy to review

As you create your household budget, make sure you can easily maintain it and track it with small and consistent check-ins. Start by listing the essentials like food, utility bills, mortgage or rent payments, and then add any flexible expenses like transport or social events. Don’t forget to set aside some funds for those unexpected costs that often catch people out as well. MoneySmart’s budget planner can be a useful tool for your home. 

Ultimately, you want to be able to get a better understanding of your money flow and set yourself some clearer new year financial goals – without striving for unattainable perfection. Monitor your budget consistently – weekly or fortnightly, depending on your regular income cycle – and do a bigger tidy-up once a month if you need to.

We live in a subscription world these days, with multiple monthly payments for memberships, apps and streaming services coming out of our accounts. Most, if not all, are “set and forget” payments, which can be convenient. But if you’re not using the services you’re paying for, it’s money effectively going down the drain. 

This is where a quick audit of your subscriptions and bills can be particularly useful as we approach 2026. 

List, review, and streamline recurring payments

Start your audit by finding or downloading your bank statements – try for the last 12 months – and listing every subscription and recurring bill. Make sure to include renewals you might only see quarterly or annually. 

Group each of these subscriptions and bills into three key categories:

• Use and keep
• Pause or renegotiate
• Cancel

Doing this will give you clear and practical information that will help you update your budget and set clearer goals for the new year. You might find, after switching from Spotify to Apple Music months ago, that you’re still paying for both. Or you might realise that you’re still paying for a movie streaming service that you’ve not used in months. Going through your subscriptions is an easy way to free up funds to boost your savings, build an emergency fund, or pay down debt faster without changing everyday spending.

Most of us certainly don’t think about our credit ratings on a daily basis. However, there is still immense value in keeping your score strong and healthy, and the new year is a great time to start making those improvements. 

Concentrate on steady habits rather than quick fixes

If you’re considering financial resolutions for the new year, consider supporting your credit score by sticking to consistent and low-effort routines. 

Simple habits that can boost your credit score include paying your bills on time, keeping new loan applications to a minimum, and regularly checking your credit report for accuracy. It’s important to build simple habits of regularly checking key details on your report, keeping documents organised, and reviewing/reporting any unfamiliar entries.

This keeps you on top of your finances without the stress of constant monitoring.

Significant one-off expenses like medical bills or bond payments can throw off a household budget and undo progress on savings or other financial goals. 

A helpful 2026 resolution is to consider the way you fund larger purchases, possibly with a single cash loan rather than relying on a revolving line of credit or multiple smaller debts. Red Tree Finance offers a range of useful loan options to help in this matter.

Match the borrowing option to the purpose and timeline

Some people may choose to cover a particular time-bound expense, like major car repairs, with an online loan. They get the benefits of a set term and predictable repayments that can be easier to track than a credit card or some other form of revolving line of credit. 

A personal loan will help you to maintain clarity on what the money is for, what the repayments look like across the year, and how it fits your wider financial situation and income.

An emergency account is less about wealth or building a “rainy day” fund, and more about developing financial resilience. Though a Red Tree Finance emergency loan can certainly be helpful in urgent situations, even modest savings can soften the impact of unexpected costs and support better financial health over time.

Build a buffer that improves your financial health over time

Building savings with an emergency fund mindset can be particularly useful for those unexpected circumstances that strike with barely a moment’s notice; circumstances like car repairs, medical gaps, or sudden losses of income. 

To start, you don’t need to set a perfect target. It’s more important that you create breathing room that fosters long-term financial health and keeps other goals on track. 

Many people benefit from keeping their emergency savings separate from everyday spending. Making consistent contributions, whether they are weekly, fortnightly, or monthly, can also help. Monthly tracking of the funds in your emergency account can motivate you and help you keep up with your progress.

Juggling multiple loan repayments and lines of credit can be tiresome. Just the admin alone can feel like you’ve put in a hard day’s work. Debt consolidation can be an effective way to simplify your repayment obligations and minimise your financial stress. 

How a personal loan can simplify your repayments

When you have debt spread over numerous credit cards and loans, consolidating them can be an effective way to simplify your financial obligations in the new year. 

To get a clear and comprehensive picture of those financial obligations, start by listing all of your loan or credit card balances, your next payment due dates and any other notable costs. 

A Red Tree Finance debt consolidation loan up to $5000 can help you to pay off your existing debts, leaving you with potentially just one repayment, one interest rate, and one set of charges.  

Turn New Year’s resolutions into sustainable financial habits

Like any resolutions we make at the start of a new year, whether it’s going to the gym, reading more, or eating better, the best ones are those that you can ultimately stick to in the long term. The same applies to setting and achieving financial goals. 

If you’re approaching 2026 with the mindset of wanting greater financial control and freedom – and, let’s face it, don’t we all want that? – start with one change. 

Build a simple household budget, improve your credit score or consolidate your debt into a single instant loan. Don’t feel as though the only way to achieve financial health is to try and achieve all your goals at once. Start with one and build from there. Track your progress monthly, concentrate on long-term habits, make changes as your life changes (and it will change) and speak to Red Tree Finance if you need cash loans from $2250 up to $5000 in 2026.

What is one of the top 3 financial resolutions for the new year? 

One of the key resolutions to consider for the new year is paying down debt. You can do this by sticking to a consistent repayment schedule, making additional payments beyond the required monthly minimum, or consolidating your existing debts into one with a Red Tree Finance secured loan. 

What is the 70/30 rule?

The 70/30 rule suggests that you should use 70% of your regular income on daily living expenses and use the remaining 30% on savings and debt reduction. You might also hear it called the 70/20/10 rule, with 20% going towards savings and 10% as a discretionary fund, or the 60/30/10 rule.

How can I check my credit report for free in Australia?

In Australia, you’re legally entitled to a free credit report every three months. This report includes your credit score and other credit information, which Red Tree Finance may review as part of your instant loan assessment.  You can apply for your credit report from one of three credit reporting bodies, Equifax, Experian or Illion.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.