How to Set Up Your Finances for a Strong Start in 2026

Realistic Tips for Managing Holiday Stress, Planning Ahead & Getting Your Budget Back on Track

The holidays are supposed to be the most wonderful time of the year, but for many people, they’re also the most expensive. If you’re heading into the new year feeling financially drained, overwhelmed by bills, or unsure how you’ll make it through January, you're not alone.

The good news? There’s still time to turn things around.

At Sunset Finance, we believe in meeting people where they are. Whether you’re recovering from holiday spending or just ready to take control of your money in the new year, here are realistic, non-judgmental tips to help you reset, reduce stress, and make 2026 your most financially confident year yet.

Step 1: Take Inventory of Where You Stand

Before you plan ahead, pause and assess:

• How much did you spend this holiday season?
  
  
• Do you have any pending bills or upcoming expenses in January?
  
  
• Are you carrying any new credit card debt or buy-now-pay-later debt into the new year?

What you can do:
Take 30 minutes to write down all your current expenses, due dates, and balances—no shame, just awareness. This becomes your launchpad for better decisions going forward.

Helpful tips: Use a free budgeting app like Mint, Goodbudget, or even a simple notebook or spreadsheet to stay organized.

Step 2: Cut Back Gently (Not Drastically)

You don’t have to go into “deprivation mode” in January, but small, thoughtful cutbacks can free up money without sacrificing your lifestyle.

Try this:

• Pause one or two subscriptions you’re not using
• Plan meals to reduce food waste (and takeout costs)
• Delay any non-essential shopping for 30 days
• Do a no-spend weekend to reset spending habits

Goal: Free up $100 to $300 this month to put toward bills, savings, or catching up.

Need breathing room? If you're still falling short after trimming expenses, a small personal loan from Sunset Finance could help manage leftover holiday costs with a predictable repayment plan.

Step 3: Organize for Tax Season Now (Yes, in December)

Even if you’re still in holiday mode, prepping for tax season now can save you time, stress, and money later.

Do this before January:

• Start collecting W-2s, 1099s, and any childcare, education, or healthcare expense records
• Make sure your personal info (address, bank account, dependents) is updated
• Decide how you want to file: in-person, online, or via a secure app like Taxes To Go
  
  

Pro tip: Filing early can help you get your refund faster, and help prevent tax-related identity theft. Sunset Finance offers tax prep services and the Taxes To Go mobile app, so you can file securely from home and get guidance from a local team that knows the process.

Step 4: Make a Plan for Your Tax Refund Before You Get It

Many people treat their tax refund like a surprise bonus, but having a plan for it now makes it much more powerful.

Smart uses for your refund:

• Catch up on past-due bills
• Pay off one credit card completely
• Start (or restart) a small emergency fund
• Make a big one-time payment toward a car loan, student loan, or medical bill

Need your refund sooner? A tax advance loan from Sunset Finance lets you access a portion of your expected refund early, so you can avoid late fees or payday loans while waiting for the IRS to process returns.

Step 5: Create a January-Only Budget (Don't Overthink It)

Big resolutions can feel overwhelming, so don’t make a 12-month financial plan. Start with one month: January.

Keep it simple:

• List your income for the month
  
  
• List your fixed expenses (rent, car, utilities)
  
  
• Estimate your variable expenses (groceries, gas)
  
  
• Prioritize the most urgent payments first
  
  
• Allocate anything left toward savings or debt
  
  

If you've never created a monthly budget before, the 50/30/20 rule is a simple, beginner-friendly framework that can help you divide your income into three basic categories:

50% = Needs

This half of your income should go toward the essentials you must pay to live and work. These include:

• Rent or mortgage
• Utility bills (electric, gas, water)
• Basic groceries
• Gas or public transportation
• Insurance (auto, health, renter’s)
• Minimum loan payments

Example: If your monthly take-home pay is $2,000, then around $1,000 should go to your needs.

30% = Wants

This category covers non-essential spending, things you enjoy but could technically live without. It’s important not to cut this to zero, because it helps make your budget sustainable.

This can include:

• Streaming services
• Eating out or delivery
• Shopping and gifts
• Entertainment or hobbies

Example: With a $2,000/month income, $600 can be allocated to wants, but if money is tight, you can temporarily adjust this category and shift some of it to needs or savings.

20% = Savings & Debt Reduction

The last 20% should go toward improving your financial future. This includes:

• Building an emergency fund
• Paying extra toward credit card or loan balances
• Contributing to a savings account or retirement
• Putting money aside for big goals (car, home, trip, etc.)

Example: If your goal is to pay down holiday debt, you could use $400/month (20% of a $2,000 monthly  income) toward an extra payment or into a high-interest savings account to avoid future borrowing.

Step 6: Set One Small, Achievable Financial Goal for January

Setting a massive goal like “get out of debt” or “build a huge savings account” is inspiring, but also easy to abandon. Instead, set one small, meaningful financial goal for January.

Examples:

• Make all your payments on time this month
• Pay $100 extra toward a credit card
• Put $25/week into a savings jar
• Track every dollar you spend using an app or calendar

The Goal: Build momentum and confidence. One small win leads to the next.

Real Talk: If You're Struggling, You’re Not Alone

At Sunset Finance, we’ve helped thousands of people in South Carolina and Georgia get through tough times with dignity and personalized support. We’re not here to sell you something you don’t need, we’re here to help you build a plan that works.

We offer:

• Holiday Loans: Perfect for holiday shopping, travel, or festive gatherings, and are tailored to fit your budget.
• Tax Advance Loans: Get up to $7,000 of your tax refund within 24 to 48 hours of IRS acceptance.*
• Refinancing Options: To help ease existing financial obligations.
• Convenient Tax Filing: Use our free Taxes-To-Go App to file taxes quickly and securely from anywhere.

You don’t have to have it all figured out. The key is to take one small, thoughtful step at a time. Whether that’s reviewing your budget, making a phone call, or filing your taxes early, you’re moving in the right direction.

Let’s finish this year with a plan and start 2026 strong. Start with these steps:

1. Find your nearest Sunset Finance location
2. Apply for a holiday or personal loan
3. Download the Taxes To Go app
4. Start your tax return early

Frequently Asked Questions