9 Things You Must Do Before 2026 (Financially)

About this video

• Video Title: 9 Things You Must Do Before 2026 (Financially)
• Channel: Humphrey Yang
• Speakers: Humphrey Yang
• Duration: 15:37

Overview

This video outlines nine essential financial actions viewers should take before the end of the year to improve their financial standing and prepare for the upcoming year. The steps include assessing cash on hand, leveraging employer benefits, tallying debts and assets, optimizing major expenses, utilizing tax loss harvesting, reviewing and renegotiating bills, maximizing tax-advantaged accounts, understanding savings rates, and setting clear financial goals.

Key takeaways

• Take Stock of Your Cash: Assess your liquid assets (checking, money market, high-yield savings) to ensure you have adequate funds for emergencies and short-term savings goals.
• Take Advantage of Free Money: Maximize employer benefits like 401k matches and Employee Stock Purchase Plans (ESPPs) which offer discounted stock purchase.
• Debt/Asset Tally: Calculate your total liabilities and assets to determine your net worth. Prioritize paying off high-interest debt.
• Optimize The Big 3 Expenses: Review and potentially reduce spending on housing, transportation, and food, as these constitute the largest portion of most budgets.
• Tax Loss Harvest: Sell investments that have decreased in value to offset capital gains and reduce tax liability, being mindful of the wash sale rule.
• Review & Renegotiate Bills: Contact providers for cable, internet, insurance, and credit card companies to negotiate lower rates or secure promotional pricing.
• Tax-Free Money Opportunities: Maximize contributions to tax-advantaged accounts like Health Savings Accounts (HSAs) and Roth IRAs, understanding their respective benefits and contribution limits. Consider a backdoor Roth IRA if income limits apply.
• Know Your Savings Rate: Calculate your savings rate by comparing your income to your expenses to understand your financial efficiency and aim for a 15-20% savings rate, including retirement contributions.
• Set Financial Goals for 2026: Focus on one or two key financial goals for the upcoming year, assigning specific monetary values and outlining actionable steps to achieve them.