---
title: '9 Financial Moves to Make Before 2026'
source: 'https://youtube.com/watch?v=zwRoHcLC4O0'
video_id: 'zwRoHcLC4O0'
date: 2026-08-05
duration_sec: 937
---

# 9 Financial Moves to Make Before 2026

> Source: [9 Financial Moves to Make Before 2026](https://youtube.com/watch?v=zwRoHcLC4O0)

## Summary

The video presents nine actionable financial steps to take before the end of 2026 to set yourself up for success in the new year. It covers assessing cash reserves, maximizing employer matches, calculating net worth, reviewing big expenses, tax-loss harvesting, renegotiating bills, utilizing tax-advantaged accounts, knowing your savings rate, and setting focused financial goals.

### Key Points

- **Take Stock of Your Cash** [00:14] — At year-end, assess your liquid assets (money market funds, cash, high-yield savings) to ensure you have enough for emergencies and short-term goals. Calculate the right amount for your emergency fund plus any short-term savings goals, and consider creating separate bank accounts for these.
- **Maximize Employer Match** [01:33] — Ensure you contribute enough to your 401(k) to get the full employer match before the year ends. Many employers match dollar-for-dollar up to a certain percentage (e.g., 4% of salary). At least one-third of people don't take full advantage of this free money.
- **Consider Employee Stock Purchase Plan (ESPP)** [02:27] — If your employer offers an ESPP, you can buy company stock at a discount (e.g., 15% at Adobe). Be aware of restrictions like holding periods and tax treatment differences if you sell too soon.
- **Count Liabilities and Calculate Net Worth** [03:19] — List all liabilities (car loans, credit card debt, etc.) and sort by interest rate. Then list all assets (brokerage, retirement accounts, etc.). Subtract liabilities from assets to get your net worth. Track it at an interval that works for you (e.g., quarterly or annually).
- **Review Big Three Expenses** [05:22] — Housing, transportation, and food typically make up 60-70% of spending. Focus on optimizing these categories first, as small changes can lead to significant savings.
- **Tax-Loss Harvesting** [06:32] — Sell investments that have lost value to offset capital gains. For example, a $5,000 loss can offset a $7,000 gain, reducing net capital gains to $2,000. Be aware of the wash-sale rule, which prohibits repurchasing the same security within 30 days.
- **Review and Renegotiate Bills** [09:14] — Call service providers (internet, insurance, credit cards) to ask for discounts or promotional rates. Even saving $100 a month is worth a phone call.
- **Maximize Tax-Free Accounts (HSA, Roth IRA)** [10:08] — HSA contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Roth IRA contributions grow tax-free, but income limits apply; a backdoor Roth IRA can be used if you exceed them.
- **Know Your Savings Rate** [12:39] — Calculate your savings rate by subtracting monthly expenses from income and dividing by income. Aim for 15-20% savings rate, including retirement contributions.
- **Set Focused Financial Goals for 2026** [13:46] — Choose one or two primary financial goals for the year, attach a specific number (e.g., pay off $14,000 car loan), and work backwards to create a plan.

### Conclusion

The video emphasizes taking proactive, year-end financial steps to optimize savings, reduce taxes, and set clear goals for the upcoming year. By focusing on these nine actions, you can start 2026 with a stronger financial foundation.

## Transcript

perfect time to set yourself up for success heading into the new year. So, financial moves you can make today your finances and really start the new year off strong. All right, starting
with number one, taking stock of your cash. So, at the end of the year, it's a liquid assets you have. This can be money market funds, cash under your mattress, or cash in a high yield
want to know how much liquid cash you or an unexpected expense. And when I nature, I am thinking that these assets can be turned into cash within one to
figure out what proportion of your entire portfolio is in cash because sometimes you might have too little. So in a previous video I said that the accounts is the combination of your emergency fund plus any short-term
savings goals that you might have. So, for example, if your emergency fund is around the equivalent of $25,000 for six months and you're also saving towards a house down payment and you have $20,000 in there, then the right amount for you
might be 25K plus 20K, so $45,000. I think one of the most practical things that you can do today is to calculate exactly how much of an emergency fund that you actually need and then create some separate bank accounts for that
goals that you might have. By the time that your year ends, you should know like heading into the new year. So, make thing you want to do financially before this year ends is to make sure you have
your employer offers you. Many of you watching the channel know that you match. But, this is one of those things that actually must be done before the calendar year ends. You don't have to max out your 401k just yet. In fact,
many people don't even have enough money to max out their 401k. and some people think you would be kicking yourself a little bit if you at least didn't take employer match. Oftentimes, employer matches are dollar for-doll. So, this is
known as a full match. And the employer will match 100% of your contributions up to a certain limit. If you make, let's say, $100,000 per year, they might match, let's say, 100% of up to 4% of your salary. So, that means $4,000 of
your contributions they can match dollar for dollar. You would think that this is there is an article that I found that said at least one-third of people don't advantage of the full match. Now, let's say your employer doesn't offer any
matches. Another place where you can hypothetically get some free money is an employee stock purchase plan, or that's known as an ESP. This is where if you have a company that you work for that owns publicly traded stock, sometimes
stock at a discount. For example, I have a friend that works at Adobe and she gets a 15% discount on buying her stock through Adobe when it's done through her ESP plan. There will be some restrictions with these types of plans.
period requirement. And I've even heard of a tax treatment difference where if you sell the stock within a certain time frame, the discount that you get gets taxed as ordinary income rather than capital gains, further disincentivizing
you from just flipping the stock. However, if you are at a company where the future of that company and you're able to get a 15% or maybe even more of a version of free money that you can opt for and hopefully you can do that by the
should do before the year ends is to count how much in liabilities you have. car, perhaps you owe money on a credit loans, you just want to know what your total liability number is because
important as knowing how much you actually have in assets. Once you have you want to sort them by interest rate. And I would say if you do have any high would personally start looking at how I could pay those off first, especially as
done that, then you want to figure out how much in assets you have. So this is account that you might have. Then add up all of your investments within your brokerage account, Roth IRA, 401k, etc. Then also add in any assets you might
you have part of a business equity stake. You can add that in as well. I here. But once you have a list of your assets and then a list of your assets minus your liabilities and guess what you have? You actually have just
calculated your net worth. So, I've been tracking my net worth every single month since 2016. And I can tell you that a monthly tally of your net worth is a little bit counterproductive. I think just because my net worth uh can
investment values are. Earlier on in my life, I really wanted to track my net liked to know what that number was and see if it grew. But as investments have become more and more of a percentage of my overall net worth, I find that my net
worth can fluctuate wildly on any given month. That is pretty mentally taxing. So, what I'm doing starting in 2026 is to check my net worth once every quarter or maybe even just once a year. Whatever interval you choose, as long as you're
ahead of the game. Just choose an interval that actually works for your some of my comments and saw some really fun ones about people who have increased their net worth by watching this channel. So, if you feel comfortable,
worth and how long you've been watching the channel. I think it'd be really fun would be also really fun to see everyone else root each other on in the comments. The fourth thing I want you to take note of as this year ends are your big three
expenses. That would be housing, transportation, and food. And these are the three expenses that typically make up 60 to 70% of most people's spending. how much you're investing and saving, usually you want to look at these three
categories first. For example, if you're spending $3,000 a month on rent in a high cost of living city, but you could spend $2,000 or maybe $2,500 a month in a comparable apartment that's maybe a 20-minute commute away, you could save a
lot of money quite instantly. There is a bit of a lifestyle trade-off there, but I think that often times we get into an autopilot mode where we aren't really expenses that we can optimize. Some people get really focused on the weeds
your daily coffee habit, or perhaps your gym classes. As you go into this new expenses that you are spending your money on, such as housing, the biggest categories that can actually make a difference. If you find that
these categories, perhaps by the time it's December 31st, you can figure out yourself to live. The goal isn't to be as cheap as possible, but if you can be a little bit more intentional with the three biggest expenses of your life,
that should set you up for success in the new year. The fifth thing today is strategy where you would sell your investments that have gone down in value this year to lock in losses and then you can use that to offset any capital gains
that you had this year. People usually like to wait until 2 to 3 weeks before can do it anytime before the end of the calendar year. Let's say in February you bought Alaska Airlines stock at the high and now you are sitting on a pretty
significant loss of $5,000, but you're still holding the stock as of today. At which you bought in March, and you flipped it in November of this year for a realized profit of $7,000. That means you are sitting on a $7,000 capital
gain, and you would owe taxes on that $7,000 gain if you're not able to offset any of those gains. So tax loss harvesting is simply the idea that you can sell your Alaska Airlines stock to offset the gain that you have on the AMD
stock. So in this hypothetical, you sell your Alaska Airlines stock, you will take the $5,000 loss there, and then you will offset the $7,000 gain that you have by $5,000. Thus, your net capital gain for the year is now $2,000 total.
because then it kind of brings up this loophole of like, oh well, couldn't I just sell Alaska Airlines stock, take the loss, and then just buy it back the cannot because there is something called
allow you to repurchase the same security within 30 days of selling it. And it was created to prevent against this exact behavior of you offsetting your gains. The rule wants you to actually exit your position, not just
right back up. Now, I do want to clarify. You can actually physically buy say, lost money on it, but you wouldn't return. Another great thing about tax loss harvesting is that if you ever have
a huge loss on a stock, let's say you lose $100,000 this year on an energy stock, that $100,000 in losses can be used to offset gains over the current and future years until the full $100,000 loss is utilized. There is one caveat,
which is that if you want to deduct losses against your income, you can only take up to a maximum of $3,000 in losses against your income tax every year. So, let's say you did lose this $100,000 on an energy stock, but you had $20,000 in
gains from another stock like AMD. You could use the $20,000 in losses to offset those gains. So, you would have no capital gains tax, but you can't then use the remaining $80,000 in losses that you have to reduce your income tax. You
can take $3,000 in losses against your income tax. That's totally fine. And then you have the remaining losses that you can carry forward to future years. I All right. Coming in at number six today, the sixth thing that you should
review and renegotiate any bills that bills pretty often. So, I will call the provider at the end of the year and I usually just say something along the lines of, "Hey, do I qualify for any
discounts this year or am I able to get promotional pricing again if I sign on will have some sort of discount or some sort of promotional rate that you can lock in as long as you perhaps sign a contract extension. Insurance is another
your health insurance provider, your home provider, or perhaps your auto save some money just by talking to them or even just comparing insurance offers the end of the year, you can also call
they aren't a provider in the traditional sense, you can call them to negotiate a lower interest rate or perhaps inquire about any promotional on interest and fees. If you can even just save, let's say, a $100 a month by
making a phone call, I think that is a pretty good deal in my book. Coming in at number seven today is to maximize any tax-free money opportunities you might have, like the Roth IRA or the HSA. For the HSA, which is the health savings
account, this is an account set up to incentivize you to save for health related expenses, but it's really one of the most taxefficient savings vehicles Number one, contributions are taxdeductible, which means that will
lower the total amount of income tax you pay in any given year as long as you contribute to it. Number two, the growth of the account is taxfree, just like the Roth IRA. And third, withdrawals for qualified medical expenses are also
tax-free. The one thing you need to make sure of if you do have an HSA is that you are actually investing the funds within the HSA itself. Too many people that money. So, make sure you are putting that money to good use. invest
in lowcost index funds and that way you will take advantage of the HSA's tax be put on the screen right here, but it's typically around $4,300 for yourself or up to $87.50 for a family. When it comes to the Roth IRA, this is
you can contribute funds to the account, earnings in that account grow taxfree upon withdrawal. The limits for this screen, but under the age of 50, it's around $7,000. over the age of 50,
there's a catch-up. So, it's around $8,000 per year. The Roth IRA also has much money for the Roth IRA, so that means you're an individual making over $165,000 per year, or you are a couple making over 246K per year, you're
technically not eligible for the Roth IRA. However, what you can do is just make a backdoor Roth IRA instead. I know that this sounds like some sort of crazy secret, but if you actually Google it, it's like the world's worstkept secret
like in finance. All you do is contribute to a traditional IRA first and then you convert the traditional IRA into a Roth IRA within the brokerage account. It sounds really kind of sketchy and shady, but I've done it
clicks. The only thing you want to be careful of is something called the pro rata rule if you are doing this. And that rule states that if you have both pre-tax and after tax funds in a traditional IRA, you cannot convert only
the after tax contributions without actually converting the pre-tax contributions as well. So if you are someone who has existing pre-tax funds ways to kind of get around this and I will leave some links down below with
relevant information on that situation specifically. The number eight thing to do this year for 2026 is probably the easiest one, but it may be very tedious. of the most fundamental questions you should know the answer to about your
were to come to you on the street and be like, "Excuse me, what's your savings what that is. An easy way to figure this out is to simply know how much you on average, and know how much you are bringing in on a monthly basis. take the
bring in versus how much you spend on an average monthly basis, that is your savings amount, and then you can get your savings percentage from that number. We here on the channel want to target a 15 to 20% savings rate if we
can. And that percentage will include retirement contributions, pension contributions, any ESPs that you might have, and even contributions to your brokerage account. So, fun fact, I ran this poll on the community post tab on
this channel just a week ago, and a large majority of you actually save over 25% of your income with retirement contributions. So, that is incredible already. The ninth thing you should do before this year ends is to set up your
target financial goals for 2026. I really want you to think about what your biggest goal is in 2026 and to singularly focus on that one goal or two goals that you might have. Some examples of financial goals might be setting up a
529 plan for your kids, setting up a custodial Roth IRA for your kids, starting your own Roth IRA, maxing out your 401k, buffing up that emergency fund, investing in index funds, checking in with a financial adviser, getting
paying off your mortgage, paying off your car, saving more, or even maybe spending more. The point is that you have been working hard on your finances this video too, you're probably already financially minded. But you should also
goals might not accomplish any of them at all. So I would much rather you focus on one or two financial goals for next year and make sure that you can hit those goals and actually execute on them. If you can attach a number to a
goal as well, I think that's really helpful. So let's say you are $14,000 in debt on a car loan and you just really want to pay that off in 2026. I would work backwards from $14,000. You can think about how am I going to scrge up
an extra $14,000 over the course of the full year? Will it require me to earn some sort of side income? Will it require me to be a little bit more actual ways to hit that goal that you really want to hit. And I think you will
below in the comments, I want to hear everything from you guys. I want to know Your savings rates, your net worth goals, etc. As long as you are comfortable sharing. I hope that your Q4 is going well. If you'd like to watch my
video on the 10 jaw-dropping money stats of the average person, I will leave that video up right here. I'll see you guys in a future video on the channel. Happy if you're watching this in the future. All right, peace.
All right, peace. [Music]