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A new year brings new opportunities to take control of your finances. Whether you’re aiming to pay down debt, save for a big purchase, or plan for retirement, a financial reset can help you start fresh and stay on track. Here are seven practical tips — complete with examples — to make 2026 your best financial year yet.

1. Review Your Current Financial Picture

As the old saying goes, you must walk before you can run.  Start by gathering your bank statements, credit card bills, and any loan documents. Add up your monthly income and compare it to your expenses. Taking a few minutes for this now will give you a clear picture of where you currently stand financially.

Example: If you earn $4,000 per month and spend $3,800, you only have $200 left for savings. That’s a sign you may need to cut back on discretionary expenses like dining out or streaming subscriptions.

Pro Tip: Use Middlefield’s online and mobile banking tools to categorize your expenses and spot trends.

2. Set Clear, Achievable Goals

Setting goals is one thing, but without clarity and action those goals are more like wishful thinking. Make sure you set realistic goals and know how you can achieve them.

Example: Instead of saying “I want to save more,” set a goal like “Save $2,400 by December by putting aside $200 each month.” Breaking it down makes it easier to track progress.

Pro Tip: Write your goals down and keep them visible. It doesn't matter where, just somewhere to keep yourself aware of your goals and honest about your progress.

3. Create a Realistic Budget

Creating a budget may feel dull, but it's the key to your financial future. Start by listing all your fixed expenses like rent and utilities. Then list expenses that may change from month to month, like your groceries or entertainment expenses. Designate funds for savings before fun spending.

Example: If your monthly income is $4,000:

• Housing: $1,200
• Utilities: $200
• Groceries: $400
• Savings: $400
• Debt repayment: $300
• Entertainment: $200

Pro Tip: Use the 50/30/20 rule. That is, 50% for needs, 30% for wants, 20% for savings and debt.

4. Tackle High-Interest Debt First

High-interest debt, like credit cards, can be a big drain on your finances. Focus on paying these off first.

Example: If you have a credit card balance of $3,000 at 18% interest and a car loan at 5%, prioritize the credit card. Paying it down faster saves you hundreds in interest.

Pro Tip: Consider a balance transfer card or a personal loan from Middlefield Bank with a lower interest rate to consolidate debt.

5. Build or Replenish Your Emergency Fund

An emergency fund protects you from unexpected expenses like car repairs or medical bills. A good rule of thumb is to try to have three times your monthly expenses in savings.

Example: If your monthly expenses are $3,000, aim for $9,000 in savings. Even small amounts add up quickly! Saving $50 a week adds up to $2,600 over the span of a year.

Pro Tip: Keep your emergency fund separate from your checking account so you’re not tempted to dip into it.

6. Review Your Credit Report

Lenders use your credit score to determine whether you qualify for a loan, and the interest rate you’ll get on that loan. The higher your score, the better! Check your report for errors and take steps to improve your score.

Example: A great way to boost your score is to reduce your credit utilization. Dropping your utilization from 50% to around 30% can make a significant difference.

Pro Tip: You can request your annual free credit report from AnnualCreditReport.com.

7. Plan for the Future

Think beyond this year. Are you contributing enough to retirement accounts? Do you have adequate insurance coverage?

Example: If your employer matches 401(k) contributions up to 4%, make sure you’re contributing at least that amount — it’s free money toward your future.

Pro Tip: Schedule a meeting with a financial advisor to review your long-term goals.

Ready to Reset? We’re Here to Help

At Middlefield Bank, we offer tools and resources to help you achieve your financial goals. From savings accounts to personalized loan options, our team is ready to guide you every step of the way.

Stop by your local branch or contact our team today to start your financial reset.