If budgeting spreadsheets and lofty financial goals leave you stressed rather than inspired, consider another New Year’s ritual: an end-of-year money audit. The word “audit” might not sound all that fun. But just like an accountant, it’s helpful to approach your money behavior as neutral and impersonal as possible. “At the end of every year, people tend to jump straight into resolutions: cutting spending, tightening budgets, and promising themselves they’ll ‘finally get disciplined’ in the new year,” Jack Howard, Head of Money Wellness at Ally Bank, told Fast Company . “But I think the most meaningful financial reset starts somewhere much quieter: with your emotions.

One of the most overlooked parts of financial wellness is understanding the emotional habits behind our money choices.” It’s not about creating a strict budget; it’s taking stock of the emotional habits behind your spending.

When you understand what’s working (or not), you can make more intentional choices about what to amplify, adjust, or leave in 2025. Before the holidays get rolling, it can be helpful to take a pause to conduct an emotional money audit. December is a great time to do this because you can go into the new year feeling confident about where you are financially and plan for the upcoming year. Here’s how Howard recommends people approach their own audit, to start off 2026 on the right financial footing.

Start with reflection, not restriction “Look back at the year through the lens of how your spending made you feel—secure, stressed, impulsive, proud?” Howard says. “Notice patterns without judgment. Ask yourself which habits supported your financial well-being and which ones held you back.” More than one in five American adults (22%) said they’d had to dip into their savings to cover their expenses in the past year.

And as traditional milestones, like starting a family and homeownership, feel further out of reach for many, “treat culture,” the habit of indulging in small luxuries has taken grip. Examine the habits beneath your behaviors And yet much of our adult spending behavior started long before we were old enough to even make our own money. “I call these our ‘money roots,’” Howard says. “Take a moment to understand what triggers certain financial choices and which habits you want to start, continue, or stop heading into 2026.” Get a clear, full picture of your finances According to the Federal Reserve Bank of New York, Americans owe more debt than at any point in history—more than $18.5 trillion in total.

In such circumstances, it can be easier to bury your head in the sand or throw caution to the wind and book that three-week trip to Europe. “When you don’t have a clear picture of what’s coming in and going out, everyday decisions can feel overwhelming,” Howard says. “Start by listing out your current income, expenses, savings, and debt.” Be specific so you can see where your money is actually going.

Create a realistic, values-based spending plan for 2026 “Money wellness isn’t about always saying ‘no’ to spending,” says Howard. “It’s just as much about saying “yes” intentionally—to the things that you truly value.” Figure out your core values, and invest in them.

Is it an expensive gym membership or overpriced fitness class? Is it that coffee you buy on the way to work everyday that puts a smile on your face?

Budget for the purchases that bring you joy and cut costs elsewhere. The goal is never perfection—it’s progress The power of compounding is not limited to investments. “Focus on creating positive financial wellness momentum to propel you into the new year,” says Howard. “Set clear, manageable milestones and outline small, steady steps to build traction, like setting a weekly money check-in, automating tiny transfers towards your goals, or reviewing one spending category at a time.”