How to Build Better Money Habits in 2026

5:08Sean Pyles:We would not be here without you.

5:10Elizabeth Ayoola:All right, Sean. Tell me, now that I've put all my business out there, what are your goals for the year?

5:15Sean Pyles:I feel like I'm in financial recovery mode after a really expensive fall. You know, I'm rebuilding my savings after my wedding and my honeymoon. And I'm really just in nest mode, too. I'm enjoying being home after being away. So I want to save up for some home projects. I want to build up my emergency fund, even though it's already robust. I just feel like the world is so shaky right now that I'd like to have a little more in there. And also, I'm planning on kind of like you, increasing my income in part by building my financial planning firm a little more than I did in 2025. Now that I have fewer things distracting me, like, you know, a whole wedding to plan.

5:50Elizabeth Ayoola:I'm actually here for how, well, your goals for the year. And also, I like the idea of starting the year off kind of slow. And that's what it sounds like you're doing. slow, staying at home, nesting, not spending too much and focusing on a few things. I like that. Yeah.

6:04Sean Pyles:When spring hits, I always am so busy in the garden. So I like to use the few winter months that we have in Portland where it's a little bit rainy, a little bit dark to just make my little schemes for the year and get things set up. So when things are nice and beautiful, again, I can go out and enjoy them and not worry about my money too much.

6:21Elizabeth Ayoola:How romantic.

6:22Sean Pyles:Thank you. I am kind of a romantic person. Well, it seems like a lot of folks have a lot of big plans for 2026. According to NerdWallet's 2026 Financial Outlook survey, over half of respondents, 57%, said they plan to take a potentially risky financial action this year, something like investing in crypto. 17 % of respondents said they plan to buy a new house in 2026, a figure which is almost certainly unrealistic. So best of luck to all of you who want to do that. And almost 20 % said they wanted to start a new business. So Elizabeth, maybe you and I can help folks out with that.

6:54Elizabeth Ayoola:Oh my gosh, definitely you, Sean, because look at me acting like I don't have a business. That's something I'm not sure about how I'm going to expand this year because I'm in a bit of a comfort zone, but definitely could expand there. And I will say that is a good idea. Well, my strong opinion is that it can be a good idea because it's a great way to get some extra income and without necessarily getting another job. And it provides you flexibility as well. Anyway, investing in crypto, everyone wants to invest in, well, not everyone, people in the survey want to invest in crypto. Are you invested in crypto?

7:20Sean Pyles:I have some Dogecoin that I bought before Dogecoin was what we think of it as it is now. But I think everyone is just embracing this world of scams and scheming and ripping people off. So it seems like it's going to be a great year for crypto.

7:35Elizabeth Ayoola:Oh, my gosh. Hey, but I also want to address before we move along your shady comment about it being unrealistic, shady but factual to buy a house in 2026. So I'm curious to see how that goes.

7:45Sean Pyles:I don't want to rain on anyone's parade, but the housing market is super tough. And a lot of people say they're going to buy a house every single year. But just the data that we've collected at Nerdball doesn't really bear out these great claims. So if you do want to buy a house this year, we at Nerdball are happy to help you figure out how to do that and talk about some ways that you can actually get a down payment and buy a house. But it's going to be tough because the market's so tough right now.

8:07Elizabeth Ayoola:It is. So I like your emphasis on realistic.

8:10Sean Pyles:Well, if we and our listeners want to accomplish any of our goals for this year, we need to know how to make it as easy for ourselves and for our brains as possible to accomplish these things. I think a lot of folks see the beginning of the year as a time where they have to kind of fight their natural instincts and force themselves to be better versions of themselves, often by doing things that they don't really enjoy or they don't really care about. And to me, that's really backwards. Instead, I think we should all be listening to our bodies and souls and center what we actually deeply care about.

8:40Sean Pyles:And then you can leverage the way your brain works to accomplish these goals.

8:43Elizabeth Ayoola:I love that. So exactly how can people do this, Sean?

8:47Sean Pyles:Okay, a really simple way is just focusing on your values. We talk a lot about values, your money values on smart money for good reason. So anchor your financial goals to what you care about in life. Maybe you really value going on vacations with your family, or you value being free from the burden of monthly debt payments like you, Elizabeth, paying off your car loan ahead of schedule. Or you also want to increase your sense of financial security like I was talking about earlier. These are all important values to think about as you're making your goals for the year. So, Elizabeth, what would you say are your values in life and in finances?

9:19Elizabeth Ayoola:I'm going to nerd out a little bit here because one of my favorite exercises over the years actually is to write out my values and to do a check-in with myself to see, you know, is the way that I'm living aligning with my values. So, of course, I can tell you off the top of my head that freedom, community, and adventure are at the top of my list, even though I have more. So freedom for me is just being able to do the things that bring me joy, which sometimes costs money. I like to do nothing sometimes, and that costs money too. Community is a big one for me. So that includes family, friends, and people outside of my inner circle too.

9:52Elizabeth Ayoola:And then adventure. Sean, you know that I am an adrenaline junkie. And I might want to go bungee jumping tomorrow. And that also costs money.

9:59Sean Pyles:Or ziplining. You went ziplining like five times last year.

10:02Elizabeth Ayoola:I did. And it was fun every single time. Who knows what I'm going to do this year. Dun, dun, dun.

10:07Sean Pyles:I know. I love following your crazy adventures. They're so fun. Thanks. I feel like I have two sets of values. I have kind of my more altruistic values and then perhaps my more like selfish or indulgent values. Altruistically, I really value family and personal financial resilience, community like you said, Elizabeth, and also helping uplift those who have been most marginalized and under assault in our society, especially over the past couple of years. Indulgently, I really like to buy nice things for myself and going out to delicious meals and traveling is important to me, too. So everyone listening, I would suggest you take a moment, maybe go for a nice walk.

10:44Sean Pyles:No headphones in, just your brain and nature or city noises around you. And think about what your values are. I mean, you don't have to be Mother Teresa, but just be honest with yourself and thinking about what you care about in life.

10:56Elizabeth Ayoola:And here's a special Smart Money Podcast value challenge for you this year. Listener, as we like to say. Find one value that connects to helping your local community. Now, we know that last year has been pretty hard for a lot of vulnerable people, and it looks like the coming year is not going to be any easier. So I want you to think about how you can make the world a better place and somewhere that's a little bit kinder, gentler, and maybe more generous.

11:20Sean Pyles:All right. And that brings me to the next step, connecting your values to concrete action. And here's what that looks like for me based on the values that I just outlined. So for financial resilience, that's going to be beefing at my emergency fund and also investing more. because I was pulling back on investments at the end of the year because my wedding was just sucking up all of my money. That's also going to mean helping vulnerable populations. So that'll be doing things like increasing charitable contributions, also volunteering at organizations that help the trans and immigrant populations where I live.

11:49Sean Pyles:And then indulgently, I'm going to go out to eat more. I want to make a list of the best local restaurants that I haven't been to yet. And I want to go to all of them because Portland is an amazing food city and I just can't wait to dive in more. So that's me. What about you, Elizabeth? What does this look like on your end, bringing your values to life?

12:05Elizabeth Ayoola:I was just going to say that you have to share your foodie list with me, but then I realized we don't live in the same city. So nevermind.

12:10Sean Pyles:You need to come to Portland.

12:11Elizabeth Ayoola:I do.

12:12Sean Pyles:You've never been, have you?

12:13Elizabeth Ayoola:I've never been to Portland.

12:15Sean Pyles:Well, come hang out with me and our producer, Tess, because we're here and we'll show you around and we'll take you to all the delicious food spots.

12:21Elizabeth Ayoola:I believe you, but you have to make sure I walk too, because, you know, the weight gain.

12:25Sean Pyles:Yeah, we'll do that. There are good hikes out here. Good nature.

12:27Elizabeth Ayoola:All right. So what does it look like on my end? I'm going to start with freedom. And for me, putting that into action looks like ensuring I'm on track to retire early or at least close enough by staying focused and maintaining a high savings rate. Yes, it is 2026. And yes, I'm still interested in FIRE. Community is the next one. And I plan to put this into action by finding new charities and causes to donate to and also maybe opening another account for giving. And that would also... There you go. By the end of the year, you're going to be like me

13:00Sean Pyles:with 10 savings accounts.

13:01Elizabeth Ayoola:No, no, no, no. I'm not going for 10, but maybe we'll go for in the middle, five.

13:05Sean Pyles:Okay, okay.

13:05Elizabeth Ayoola:But that account also would include, because I love to give to loved ones on their birthdays. I'm helping people who are in a bind, right? Just because gifts, because I've been trying to especially romanticize my friendships and just be, you know, those secret givers who pay it forward and pay for someone's groceries, just random things like that. Yeah.

13:22Sean Pyles:I like that. It's kind of like having a designated giving fund. It doesn't have to be for a big thing. You can just throw five, ten bucks at a cause you care about.

13:30Elizabeth Ayoola:Exactly. Or just supporting a local business, which I know is going to be important during these times as well. For the last one, adventure. It's really simple for me, just budgeting so I have enough income to do the things that give me an adrenaline rush solo and also with Ayo, my son. So yeah, we'll see what's next on my bucket list. I can be an impulse bender, so I want to know that I have a designated fund for that versus just being like, Hey, I'm flying to Japan tomorrow and blowing up my budget.

13:56Sean Pyles:We're all about having designated funds so you can be kind of loosey-goosey with your money, but responsibly. We're back in a minute. Stay tuned.

14:07Elizabeth Ayoola:Today's episode is sponsored by Spectrum Business.

14:10Sean Pyles:Picture this. You're running a business and the internet drops during business hours. Your to-do list instantly becomes, one, panic. Two, stare at the router like you're negotiating with it.

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14:51Elizabeth Ayoola:Our colleague Carrie is a Spectrum customer. Shout out to our social media team. And she told us that she chose Spectrum because people online kept recommending it as a reliable and affordable option for internet and phone service.

15:03Sean Pyles:Carrie told us she was actually a little hesitant to switch at first because she'd been using a different service for a while. But after a year with Spectrum, she's had a really good experience. Her phone gets strong, reliable service, and it automatically connects to Spectrum Wi-Fi everywhere.

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15:59Elizabeth Ayoola:Okay, so we know what a few good financial goals are now, thanks to Sean. We know how they reflect our values and what our values are. You guys will know that soon when you take your walk. Now, how do we actually make them happen?

16:13Sean Pyles:Okay, I'm so glad you asked, Elizabeth. And this gets me to goal implementation. As any certified financial planner, such as myself, will tell you, actually making your goals happen or implementing recommendations in a financial plan is one of the most difficult things for people to do. And that's not because it's actually hard to set up direct deposit into a high yield savings account or to pull back on how much you're spending on DoorDash in a given month. But inertia of just doing nothing is a really powerful force and making real changes to how you manage your money and thus how you live your life doesn't always feel great.

16:47Sean Pyles:You have to take actions that you're not used to doing and you have to be out of your regular mode of managing your finances. And that's just uncomfortable and doesn't feel great. So people don't want to do it. But following a framework for implementing goals can make this process a heck of a lot easier.

17:03Elizabeth Ayoola:I agree. I think in the years where I achieved the most, having a framework and really breaking everything down really helped me to stay on task and achieve that goal. And even when I fell short, I could clearly see why, because maybe I skipped a step.

17:15Sean Pyles:Yeah, so I would encourage folks to get comfortable being uncomfortable with what they're doing with their money. Making real growth and change involves doing things that are new and, again, aren't going to feel great at the beginning.

17:25Elizabeth Ayoola:So this is the point in this episode where we bring out an old friend of smart money. That's the SMART Goal Framework. This is an acronym for setting goals that are specific. That's the S. Measurable, attainable, relevant, and time-bound. Now, specific means you know precisely what you want to accomplish. So instead of saying this year, I want to save more for retirement, you could have a goal that would be this year, I want to max out my Roth IRA contributions. Can you see how specific that is? Now, measurable means you have a way to track your progress. For your Roth IRA contributions, the maximum you can contribute in 2026 if you're under 50 is$7 ,500.

18:06Elizabeth Ayoola:So on a monthly basis, if we broke that down, that would mean contributing$625. If you get paid twice a month like I do, that's$312.50 from each paycheck you would put into your Roth IRA.

18:20Sean Pyles:Very measurable. Another big benefit of making your goals measurable comes from the process of breaking your larger goal into smaller, more manageable pieces. Thinking back to my wedding last year, I knew that I wanted to save$20 ,000 over the course of five years for that event. So I had this big time horizon and a huge amount of money to save, but breaking it up over time, over each monthly paycheck, bimonthly paycheck, I was able to save about$333 a month on average. And that made this really ambitious goal a lot easier to attain over time.

18:50Elizabeth Ayoola:I love the breakdown of it. And I guess my biggest goal today is saving for early retirement. I know you're sick of hearing about it, but breaking it down to how much - Never sick. Breaking it down to how much I needed to save each year and each month made it a lot more attainable than just seeing this huge chunk of money that I needed to save. But yeah, attainable means it's actually feasible. And for a lot of people, contributing$625 a month to a Roth IRA might not be in their budget. But could you contribute$400 a month? That would be a way to get you an annual contribution of almost$5 ,000 a year.

19:25Sean Pyles:And for the R in SMART, we actually already went over relevant. That's where you put your personal values into your goals. Your goals need to be something that you really feel passionately about, not just something that you think you should be doing.

19:38Elizabeth Ayoola:And speaking of think, we're going to move on to the T in the acronym, and that stands for time bound. You have a specific time frame for when you're going to accomplish this goal. for maxing out your Roth IRA, carrying along that example, you could have the goal to save enough each month to max it out by December. So your goal has a clear beginning and an end date.

19:58Sean Pyles:Like you was paying off your car by the end of December.

20:00Elizabeth Ayoola:Exactly. There we go.

20:02Sean Pyles:So that's SMART goals. I really like them because it's an effective way to structure your goals. But I also like to add an extra R to the end. Anyone who's heard me talk about SMART goals should know this by now. And I make them SMARTER goals. This extra R stands for rewarded. Behavioral psychology tells us that the more we enjoy an activity, the more positive reinforcement it gives us, the more likely we are to do it. So with the Roth IRA example, each time you make that contribution to your account, maybe you treat yourself to a nice glass of Pinot or Chardonnay at the wine bar down the street.

20:33Sean Pyles:Or you take your dog out for a walk at the park that you haven't been to before. That's probably what I would do, but the reward has to be something that actually brings you joy and fulfillment and a sense of satisfaction for making progress. So Elizabeth, how do you like to treat yourself for the progress that you make on your financial goals?

20:49Elizabeth Ayoola:I'm sorry to admit, maybe I'm not sorry. I'm always treating myself, Sean. But seriously, if I had to think, a treat for me looks like buying a high ticket item that I've been putting off to prioritize saving. Last year, that was a wig. You know, I have a whole collection going or a piece of jewelry.

21:04Sean Pyles:I'm telling you, you have to name them.

21:06Elizabeth Ayoola:I have to give them names. But I do treat myself to solo fancy dinners too. Those are mine.

21:11Sean Pyles:Solo dinners are the best. Just bring along a book and just have whatever you want on the menu. And you have to worry about whatever someone else is getting.

21:20Elizabeth Ayoola:Exactly. And I like to dress up too because I'm extra. So it's fun. Okay.

21:24Sean Pyles:So Elizabeth, we know what our values and our goals are for the year. And we have the smarter framework to help us bring them to life. So we hope. But there are certainly going to be some curveballs in the year ahead. Do you foresee anything that might throw off your plans? And how do you think you'd recalibrate?

21:38Elizabeth Ayoola:Impulse spending for me is always lurking in the shadows. and honestly, unexpected financial bills. Or we did an episode on this last year, bills I didn't plan for. It's usually a car bill when it comes to repairing it or taking it for maintenance or a kid bill. Oh my God, summer's coming again.

21:57Sean Pyles:You better start saving for the summer camp or whatever it was last year that blew up your budget.

22:01Elizabeth Ayoola:I know, am I telling on myself? I'm not gonna tell you whether I have or haven't started saving for that goal, but yeah.

22:06Sean Pyles:Well, you better start saving right now and maybe you'll get another savings account just for that purpose?

22:12Elizabeth Ayoola:Well, listen, with how expensive summer camp is, it needs its own account, okay?

22:16Sean Pyles:There you go. Okay. Well, I think we've given folks a really solid foundation to kick off the new year. As a recap, spend some time thinking about your values in life. Then realize that money is just a tool to help you live your values.

22:28Elizabeth Ayoola:Next, connect your values and your goals to the Smarter Goal Framework so you can bring your goals to life and get what you want from your finances in 2026.

22:38Sean Pyles:And don't skimp on the rewards for yourself along the way. Seriously, enjoy what you're going to be doing with your money. And listeners, we'd love to hear what you're planning to accomplish with your finances in 2026. Text us or leave us a voicemail on the Nerd Hotline at 901-730-6373. That's 901-730-NERD.

22:57Elizabeth Ayoola:And I'm just going to add in there, if you need help making your goals smart, send us a money question and maybe we can talk through that live with you. You can also email us a podcast at nerdwallet.com. And while you're at it, think about where you want some help with your money. Maybe you need some guidance on how to jumpstart your financial goals, or you want help prioritizing conflicting goals. Whatever your money questions, we're here to help.

23:20Sean Pyles:And that's all we have for this episode. Join us next time as we continue our series about your money in 2026, where we'll help you refine your investing strategy for the new year. Allow smart money on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.

23:37Elizabeth Ayoola:Our brief disclaimer has followed us into the new year. We are not your financial or investment advisors. This nerdy information is provided for general educational and entertainment purposes, and it may not apply to your specific circumstances.

23:50Sean Pyles:This episode was produced by Tess Figlin, Hilary Georgie helped with editing, Nick Karisimi, Mixer Audio, and a big thank you to NerdWallet's editors for all their help.

23:59Elizabeth Ayoola:And with that said, happy new year. And until next time, turn to the nerds.

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