As we approach the end of the year, making serious plans for the next one is a natural process. We often take a moment to reflect on the good we’ve achieved and the errors we’d like to rectify in the future. While AFPG can’t fix all your goals, liking writing that book or getting your handicap down to single figures or even being a more attentive parent, son/daughter or friend, what we can do is help you get your finances on track and put you on an achievable path to financial security and a fulfilling retirement. In this article, we provide a few simple ideas to kick-start your financial well-being in 2026.
Conduct a financial health check
Before the holidays begin and your money disappears, take a moment to audit your finances for 2025. Look for opportunities. Did I overspend here? Do I really need that subscription or membership? Did I pay down nagging debt? Do I use this regularly? Can I get this cheaper elsewhere? Can I live without this for 30 days? Was this purchase a habit or a choice? By asking yourself these questions and being honest with yourself, you can identify significant savings that can be incorporated into your 2026 budget.
Areas where savings are made
Life does move quickly, and assessing where savings are made can feel time-consuming; however, it can be done efficiently when you know where to look.
Subscriptions & memberships. These often renew automatically and quietly drain money.
- Unused streaming services, Netflix, Stan, Disney+, etc.
- Gym memberships are not being used
- App subscriptions, cloud storage, meditation apps, and premium games
- Subscription boxes, meal kits, beauty boxes
- Online news or magazine subscriptions
Banking and finance costs. Small fees add up quickly.
- Bank account fees
- Credit card annual fees
- ATM withdrawal fees
- Insurance premiums (shop around yearly)
Utility bills. There are usually savings available by switching providers or adjusting usage.
- Electricity and gas providers: compare plans
- Internet plans.
- With a mobile phone plan, you may not need an unlimited everything plan.
- Water usage habits
Food and groceries are one of the most considerable variable expenses.
- Plan meals and avoid spontaneous takeaway
- Check your pantry for duplicates before shopping
- Buy in bulk for staples
- Switch to home-brand alternatives
Entertainment and lifestyle: an easy place to trim without dramatic lifestyle changes.
- Eating out less frequently
- Reduce alcohol spending
- Cut back on impulse purchases
- Avoid full-price items, wait for sales
- Limit online shopping “browsing”
- Daily coffees or snacks
- Buying lunch instead of packing it
- Premium beauty products or grooming services
One-off or Irregular expenses: Takes a bit of planning
- Gifts (set a yearly budget)
- Holidays (book in advance, compare options)
- Budget for school-related expenses for children
- Home maintenance, budget monthly instead of reacting last-minute
- Cigarettes or vaping costs
- Lottery tickets/gambling
Download our user-friendly budget planner from our website to make this task a whole lot easier.
Small wins make a big difference: Use 2026 to pay down debt
Not all debt is bad, but nagging high-interest debt can be a significant drain on savings. Make a solid commitment and plan to pay down bad debt using the snowball effect.
The idea is simple: you pay off your debts from the smallest balance to the largest, regardless of the interest rate. Here’s how it works and why it’s effective.
List all your debts from smallest balance to largest, for example:
- Credit card A – $500
- Personal loan – $2,000
- Credit card B – $4,000
- Car loan – $8,000
Minimum payments are still made on every debt.
Focus all extra money on the smallest debt. You throw every extra dollar you can find at Debt #1 (in this case, $500). Why? Because it is the quickest win. When the smallest debt is paid off, roll its payment into the next debt. This is the “snowball” effect; your repayment power grows as each debt is paid off.
- Quick wins create motivation
- Psychological momentum builds discipline
- Each success reinforces the habit
- It reduces overwhelm
- Fewer open accounts mean less stress and better focus
- You stay consistent
Here’s an example
Say you pay off the $500 credit card.
You were paying $50/month on it. Now that $50 has been added to your next debt’s minimum payment.
- Minimum on the next debt: $40
- New payment: $40 + $50 = $90/month
Once that debt is gone, you apply all payments to the next debt, and so on. By the end, you’re throwing a large snowball of cash at one single remaining debt, wiping it out fast.
Continue until all debts are cleared. As each debt is eliminated, your available repayment amount increases, and the remaining debts fall more rapidly.
Why does this work even if interest rates differ?
Although mathematically the “best” method is usually to pay off the highest interest debt first, the “Debt Snowball” is often more effective for real people because:
A financial health check and the snowball effect - Gets you under control
With a small amount of effort and discipline, you can quickly get your finances under control. Our team is highly skilled in helping individuals and families at any life stage make innovative and achievable financial plans that can significantly reduce the anxiety and the overwhelming feelings of living week to week.
Make 2026 the year to start making your money work as hard as you do and clear away the financial weeds.
We can help
Step Up Financial Group, now AFPG, has the expertise to guide you in all aspects of your financial well-being. We’ve helped hundreds of Australians across the country make informed decisions that enable them to live a lifestyle of their choosing.
Contact us today for experienced, compassionate, and professional business protection advice.