5 Things I Won't Do With My Money in 2026

0:00Somewhere along the way, the act of saving quietly became the goal itself. I wasn't buying freedom or funding a specific future, although obviously that's a real byproduct of responsible accumulation. No, I was hoarding what I like to call financial virtue points, like an anxious squirrel preparing for a retirement that might never come, or that it might not live to enjoy. Hello friends, this is Tyler Gardner welcoming you to another episode of Your Money Guide on the Side, where it is my job to simplify what seems complex, add nuance to what seems simple, and learn from and alongside some of the brightest minds in money, finance, and investing.

0:39So let's get started and get you one step closer to where you need to be. There's something oddly therapeutic about sitting down at the end of a year and deciding what not to do with your money next year, like a financial New Year's resolution, but with far less kale and only slightly more self-awareness. Because every December, I start seeing those lists. I'm sure you do too. Heck, I start creating some of those lists on social media. The five things millionaires always do with their money. The seven habits of highly successful crypto bros. And sure, some are fine. But what's often missing is the other side of the ledger.

1:23The conscious absolutely knots. the guardrails that keep you from drifting into oncoming complexity. So today, I want to talk about five things I'm not doing with my money in 2026. Some of them are practical, some are, as per usual, more philosophical, and all are rooted in the idea that real wealth isn't necessarily about doing more. It might just be about doing less, better. Well, at least that's how I've always justified laziness and frugality to myself. And this is the point where I also remind you that I am not you. My goals are not yours. And just because I don't do something with my money doesn't make it inherently bad, nor does it mean you shouldn't do it with yours.

2:10But as always with these shows, I will do my best to make my reasoning as objective as possible. And I will tell you directly when I'm making a personal choice that might justify some of our inherited financial truths. And yes, I'm putting that in air quotes as I talk. And before we jump in, as always, if this show has helped you at all, maybe it gave you a way to think about money that doesn't make you want to throw your phone into the closest river. It would mean a lot if you left a quick review on Apple or Spotify. It helps others find the show, it keeps growing our community, and it continues to give me hope that we might reach a point where access to all of this type of information, you know, the highly practical and useful stuff we didn't learn in that thing called school, is free and digestible for as many as possible.

2:58All right, without further ado, here is my New Year's resolution list of five things I will not be doing with my money in 2026. Number one, I will not be paying down my mortgage early, and you will never be able to convince me otherwise. This one always riles people up. I'll get emails from folks saying things like, Tyler, paying off your mortgage is the ultimate freedom. Sure, so is quitting your job to go live in a yurt. It doesn't mean it's the smartest use of your resources right now, nor does it mean it's the right move. For me, this one is about the math. My mortgage rate is currently 3.25 % 30-year fixed.

3:45I know, you hate me right now. Today, I can earn more than that, guaranteed, in something as boring as a money market fund. And yeah, that's net fees, net taxes. So if I paid off my mortgage early, I'd actually be giving up the chance to earn that spread. That's called opportunity cost, the value of the next best thing you could have done with your money. And for years, I had never thought of money as something you could really buy, but that's exactly what debt is. You're buying money at a certain price. the interest rate. And for a while, we could buy money pretty cheaply. Now, unfortunately for borrowers, it's more expensive.

4:29But fortunately for lenders, it's more lucrative. So if you happen to own some cheap money right now, I don't know, like a 3.25 30-year fixed mortgage, that's an asset in and of itself. One that, once we consider opportunity cost, can in fact earn you money elsewhere with zero risk. Think of it like this. If you've got a loan that costs you 3.25%, but you can safely earn 4.5 % elsewhere, your money could be working harder than your debt would be costing you. You don't have to be a hedge fund manager receiving inside information just moments before an earnings report to appreciate that kind of arbitrage, aka free guaranteed money.

5:15Now, I obviously get the emotional component here. Well, what if you lose your job? What if the market tanks? Shouldn't you just pay it off for peace of mind if you can? No, you shouldn't. I said I get it, not that I endorse it or that you should do it. Because many of you have written to me when I reflect on this topic and told me that you'd rather pay it off now and then be able to invest all the money you're saving down the road. You're missing the math here that whatever you could do down the road could be done now and give you a higher guaranteed return. If you had been steadily putting those same dollars into something earning a higher rate starting today, then technically you'd have even more money to pay down the mortgage later if you chose to do so.

6:02And even though I know and appreciate that personal finance is personal, so as always, you do what works for you, I would just ask you to press pause on your actions before you go around killing all your liabilities. This portion of the personal finance program is about understanding your spread. If you can borrow at 3 % and earn 5%, you're winning. But if you can't sleep at night knowing you owe anything at all, well, that's not a math problem. That, as always, is a therapy problem. And for me, as I mentioned last episode, money always has kind of been therapy. So there's that. I'd rather hold on to cheap debt, keep the optionality and invest the difference in something that grows at a rate more than 3.25 % because while peace of mind is nice, I found a pretty good substitute for it in faster compound interest.

6:53But just to make sure I'm also always rounding out the equation, Morgan Housel, one of my absolute role models, love the guy, love his work, and if you haven't read Psychology of Money, hit pause right now, go buy that book immediately, as he's way smarter than I'll ever be. And after he explains what I just explained above in all of its mathematical glory, he goes on to tell the reader, sorry to ruin one of his final punchlines, that he and his family decided to pay down their house early, because for them, the peace of mind was worth more than the spread to which I refer. So good news, Next time you decide you want to battle with someone in the online comments about why they're a complete ding-dong for paying down cheap debt, you're right.

7:38But guess what? So were they. Here is one of the best parts about spending my time creating content for you. Hearing what's actually on your mind on a daily basis. The wins, the worries, all of it. And so many people tell me that one of the things they struggle with most right now is paying rent because it feels like you're just funding someone else's mortgage. I get it. I used to feel the exact same way. But what if I told you there's a way to pay rent where it won't feel quite as bad? BILT is the loyalty program for renters that rewards you for your biggest monthly expense. And here's how it works.

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9:13number two i'm still not going to endorse high yield savings accounts for most purposes if you know me you know me and if you've been listening to the show you know i don't love or endorse emergency funds for the sake of saving thousands of dollars for an event yet to be named in the 2028 draft but that's not my point today and you've all heard me reflect on that one already So here's something new I want you to consider that I trust will add some depth to your thinking about the real value of high-yield savings accounts. Now, again, I'm not anti-HYSA. They're fine. And you know that if you've ever had a spouse or child tell you they're fine, you know dang well fine doesn't mean fine.

9:57It means, uh-oh, tread lightly. And that's my message for you all today with high-yield savings accounts. And I've been preaching this since these things came into existence all of, you know, a few years ago. Because somehow these accounts have become the default financial flex of our generation. People proudly posting screenshots of their 4.8 % APY like they've discovered compound interest for the first time. The problem? That number isn't carved in stone. Not even close. It's written in sand and the tide's coming in in the form of lower interest rates, or whatever the heck that fintech company wants to do with their rates.

10:39So when someone asks me on social media, what are my favorite HYSAs? None of them. Here's what most people don't realize. Those shiny fintech companies, and note, so many of these companies aren't even banks in the literal sense. Well, these fintech companies can and do drop rates whenever they want. You need to know that you're not investing your money when you put cash in a high-yield savings account. So it doesn't matter what the short-term interest rates are. The bank or fintech company or credit union takes your money and invests it in whatever they want and can pay you whatever they want.

11:17you are effectively lending them your cash so they can go earn a higher return with the newfound pooled risk of a larger asset base. And if the Fed cuts rates and it affects that company's investments, guess who's the first to feel it? Hint, not to them. Or if the bank just chooses to cut rates after that shiny headline APY lured you in for the first six months, guess who's the first to feel it? This time I'll be more literal. You, you, 100 % you. I'd rather have my liquidity in a money market fund, or if I want to add a little juice, a short-term or intermediate bond fund filled with high-grade corporates.

12:01Again, that's only if I wanted short-term liquidity. Because while everyone else is obsessing over which app is offering 4.6 % this holiday season, and for the record, it probably is quite literally only offered throughout this holiday season, I'd rather have a more predictable rate that responds as the Fed tells us what they will or won't do with rates in the future. Now, even though my point is to be weary of high-yield savings accounts and find liquidity potentially elsewhere, I did see one very popular financial influencer recently tell his community that a great alternative is certificates of deposit, or CDs.

12:41Well, CDs, although yes, they can lock in a current rate for slightly longer than either a high-yield savings or a money market, which in a falling rate environment can be a good thing, well, those CDs are also the financial equivalent of a short-term timeshare. Sounds good until you try to get your money back when you need or want it. CDs, by definition, are not actually liquid, as if you need it today before it matures. You will not get the expected interest and you will most likely be penalized for pulling your cash early and often lose any gains you made along the way. So if you're thinking about a CD, you might be better off using the CD ladder strategy similar to a bond ladder so you have expected dates for when you could use that money again.

13:32But me personally, I would still 100 % have money in a money market fund that I could access at any time without said penalties and feelings of guilt and financial illiteracy. So for me, high yield savings accounts are a decent parking spot for incredibly short term parking with clear terms about expected rates, but not the garage I want to leave my car in even for a few weeks long trip, especially in a lowering rate environment. I want liquidity, stability, and a return that's not dependent on a startup's marketing strategy. So if you're sitting on cash you might need soon, I'd go for money markets as your money's actually invested in short-term treasuries.

14:10And so long as the Fed doesn't decide inflation is a myth anytime soon, you can be relatively sure of what rates we might expect going forward. And if you're building reserves you won't touch for six to 12 months, consider either those short-term bond funds, or yes, you guessed it, this is where I just start playing the averages and putting it in the broad market in a low-cost index fund. I just don't want any of you to experience the oops, we dropped your APY again for no reason drama, and P.S., we're not actually a bank, we just play one on TV. Number three, in 2026, and oh boy, is this a hard one for me, I'm not, or at least I'm telling myself I'm not, saving or investing just for the sake of it.

14:55Whew, feels good just to say that out loud. Here's one that took me far too long to admit, and even longer to unlearn. Well, I haven't actually unlearned it yet. For years, I was saving because I thought that's what responsible people did and investing because, well, that's what smart and financially savvy people did. And listen, both practices have served me incredibly well over time. I'm not here to bash the concept of building wealth. But at some point, I realized I'd replaced purpose with percentage points, or far more accurately, I'd conflated the two, as if hitting 25 % savings rate was itself a life goal worthy of celebration.

15:36And when I started making content talking about how much I was saving and investing simply for the sake of watching those numbers grow, and how I felt like I'd be a terrible spender, which, let's be honest, I was and continue to be, I was genuinely surprised by the response. Hundreds to thousands of you came out of the woodwork saying, Oh my god, me too. We're all out here white-knuckling our way through prosperity, terrified to actually enjoy any of it. And I've had the spreadsheets, beautiful color-coded spreadsheets, telling me exactly how much to save, how much to invest, how much to shelter from taxes.

16:12And not one cell in there has ever asked me, but why do you want to get to that number? Or what would you actually spend this on once you're there? Somewhere along the way, the act of saving quietly became the goal itself. I wasn't buying freedom or funding a specific future, although obviously that's a real byproduct of responsible accumulation. No, I was hoarding what I like to call financial virtue points, like an anxious squirrel preparing for a retirement that might never come, or that it might not live to enjoy. Here's the thing. According to Vanguard's 2024 data, the average 401k balance for people age 65 plus is around$272 ,000.

16:56Sounds great, right? Except many of these folks spent their whole lives denying themselves experiences, and now they're dealing with health issues, mobility challenges, or they've simply lost the energy or desire to do the things they once dreamed about. They won the game, but forgot to enjoy playing it. Many of us have been there. That reflex to max out every deduction, every write-off, every tax-advantaged account. Why? Because it feels like progress. It feels like we're doing something right. But here's what I've learned along the way. Saving for the sake of saving is just motion disguised as meaning.

17:33And the same goes for investing. If you're not clear about what the money is actually for, even if in the distant future, you're just going to keep moving the goalposts. And you're going to feel guilty, like deeply irrationally guilty, every single time you choose to spend money on something you actually enjoy right now. So for me, 2026 is about breaking out of the loop. It's about putting my money where my mouth is, or at least putting it towards somewhere other than into yet another pre-tax or post-tax retirement fund where it sits, untouched, growing dutifully while I eat sad desk lunches to hit my arbitrary savings target.

18:15I want 2026 to be about investing for outcomes I can actually name, buying back even more time, funding even more autonomy, buying for more bloodhounds, don't tell my wife, creating memories with people I love, do tell my wife, maybe even splurging on a slightly nicer pen for my morning reflections. And hey, don't knock it until you've tried some morning reflections yourself. I'll even read you my reflection from this morning. Tyler, you need to be nicer to financial advisors who still charge 1 % of people's assets. It's not their fault they inherited a borderline criminal system from their mentors.

18:50And yes, I still do love a good tax deduction, not a reflection anymore. Who doesn't? But I've learned to ask myself an incredibly valuable question. Is this tax efficient or am I just tax obsessed? Because there's a massive difference between minimizing taxes intelligently and contorting your entire financial life around it. I'll get to that in my next one. The truth is, and you all know this, we've been sold this narrative that more money equals more happiness and that the path to happiness is through relentless accumulation. But study after study after study shows that once you hit a certain income threshold, recent Princeton research updated to about a half a million a year for peak emotional well-being, though it's obviously lower for basic contentment, the correlation between money and happiness starts to flatten dramatically.

19:39Past that point, it's not about having more. It's about using what you have with intention. So in 2026, I'm giving myself permission to stop chasing numbers for their own sake. I'm going to ask what for before I ask how much. And I'm going to remember that the whole point of building wealth isn't to die with the biggest pile. It's to live the richest life. And if that doesn't work, I'll just start writing sappy lines like that on custom-made greeting cards and selling them on Etsy for a few bucks apiece. All right, let's talk about something that's been keeping me up at night lately. And no, it's not my bloodhounds pawing me in the face at five in the morning until she gets breakfast.

20:20Taxes. I've been running my own business for over a year now. And here's the thing nobody tells you. The hardest part about running your own business, especially as a solopreneur, is not committing to a plan or creating a team. It's figuring out taxes when you're self-employed for the first time. Should I be an S-corp? What the heck are quarterly estimates and why do I have to do them now? What's actually a write-off versus what's going to get me audited? And conveniently, nobody explains this stuff until after you've messed it up. That's why I started looking into companies like Gelt, a modern CPA firm that specializes in small business owners and entrepreneurs like me, not people filing basic W-2 returns.

21:09Business owners running LLCs, S-Corps, people who need actual tax strategy. But what I like most about Gelt is that they're proactive. They can help restructure your business setup, maximize deductions like QBI and retirement contributions, and explain what you should be doing throughout the year so it's not a hot mess come March and you're scrambling just to get to the annual finish line that's going to start all over the very next day. If managing taxes feels like running a second business, I would highly encourage you to schedule a free consultation with Gelt. And if you sign up by January 31st, they'll handle your taxes due by April 15th without the scrambling and the hot mess part.

21:57Head to joingelt.com slash Tyler to see if they're a fit for you and your business. That's J-O-I-N-G-E-L-T dot com slash Tyler.

22:12Number four. Now on the flippy flip. In 2026, I'm also not going to be spending for the sake of spending. Now, I know what you're thinking. Wait a minute. Didn't you just tell us you're done over saving? Make up your mind, please, so we can make up ours. But here's the plot twist, my friends. there is an equally destructive pattern on the other side of the coin, and it's one that plagues small business owners in particular. It's this weird psychological trap where we convince ourselves that spending money we don't need to spend is somehow financially smart so long as it's deductible. Let me explain.

22:53In the last year, as some of you know, I became a full-time content creator. I've been doing it for just over a year now, and it's going pretty well. Thus, I've had the good fortune of being in a position where I need to think about how to reinvest some business revenue to keep things growing. And for all my fellow small business owners out there, you know exactly what I'm talking about. You'll look at your books, you consider current overhead, projected expenses, and then if you've got some funds left over, you start to get this itch, this little voice that whispers, you know what? I should probably spend some of this money on the business before year end.

23:30Think of all those delicious tax write-offs. It's like a siren song. And for people like me who love optimization, it's almost irresistible. Almost. But last year, I saw the greatest CPA video I think I'll ever see in my life. This CPA looked straight into the camera and said, you want to know the single best way to save money on taxes this year? don't spend money in the first place if you don't need to. Absolutely perfect. And then she broke it down so simply. Even with a 50 % effective tax rate, which, let's be real, most of us are nowhere near, if you don't actually need the equipment, the software subscription, the consultant, or the additional higher.

24:18You haven't just saved 50%, you've lost 50%. Let me say that again. If you don't need it, you've lost 50%. It's like when someone comes home excited because they saved 50 % at Kohl's on a new pair of shoes. No, Karen, you didn't save anything. You just spent 50 % of money you didn't need to spend because you already have 200 pairs of shoes sitting in your closet with the tags still on them. But we do this to ourselves all the time in business. We see the words tax deductible and our brains do this weird mental gymnastics routine where suddenly a$5 ,000 piece of equipment we'll use twice becomes basically free money.

25:01A study from the National Federation of Independent Business found that small business owners consistently overestimate the value of tax deductions. Uh, guilty. They think of a deduction as money saved when really it's just a slight discount on money spent. So if you've got a 25 % effective tax rate and you spend a thousand bucks on something deductible, you didn't just save 250 bucks. You spent 750 you might not have needed to spend at all. And don't even get me started on the end of year scramble. December rolls around, you panic about your tax bill and suddenly you're buying standing desks camera equipment, subscribing to 17 software platforms you'll forget exist by February, all because TurboTax asked you on the last screen available, are you sure you really maximized all your deductions for this year?

25:50I've been there. I've bought the business coaching program I never finished. Well, that's a complete lie. I didn't do that, but I couldn't not include that line in here somewhere. I did buy the premium analytics tool that I checked twice and from which I just unsubscribed yesterday. I did do that. That's truth. The conference ticket to a four-day event that I left three and a half days early because, hey, it was deductible and I might network. Note, I definitely did do that. And also note, I'm way too introverted to network, thus I left. But hey, discounted car to and from the airport. Here's what I've learned.

26:25The IRS doesn't care if you're a savvy tax strategist or a bad spender in disguise. They're getting their cut either way. But you should care because every dollar you spend on something you don't need, even if it saves you 30 cents in taxes, is a dollar that's no longer in your pocket. There's also this weird status game we play as entrepreneurs, like spending money on the business makes us look more legitimate, more serious. Again, guilty. We want the fancy equipment, the premium tools, the expensive branding, not necessarily because we need them, but because we think that's what real businesses have.

27:00And yes, it does feel good to be at a restaurant and tell your friends, don't worry, this one's on the business. IRS, if you're listening, don't worry. My friends also happen to be my legal team and my tax team, and they also happen to be my siblings. But some of the most profitable businesses I know run lean. They spend money where it matters, on things that generate revenue or genuinely improve quality of life. And they're ruthlessly efficient everywhere else. So here's what I will not do in 2026. I will not hunt for business deductions simply because I can. I will not get that little dopamine hit of thinking, Ooh, I just bought this random product or service I don't really need.