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BUDGETING AND SAVING

Give your money a fresh start in 2026

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How do you approach your finances? Some people have a plan for every dollar. Others would rather scrub the floor with a toothbrush than create a budget. Maybe you fall somewhere in between. Whatever your approach, a little financial planning can set you up for a calmer, more predictable year ahead. Here are some tips to get you started.

1. Start with your why.

Money isn’t only about numbers. It’s about you and the people you care about as well as your income, responsibilities, and goals.

Think about last year’s finances:

  • Were you anxious about money at any point?
  • Did an unexpected expense catch you off guard?
  • Was there a job loss, new job, or another big life change?
  • Did you say no to something important because you weren’t sure you could afford it?

Now, imagine a new reality for the coming year:

  • An emergency comes up, and you have the money to cover it.
  • An unexpected bill arrives that’s annoying, but not terrifying.
  • You sleep better at night because you have a plan.

Motivated now? Great. Let’s keep going.

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2. Take stock of where things are now.

There’s no judgement in this step. The past is in the past. It’s about finding your starting point—what’s working well, what you absolutely should never do again, and what financial tweaks could make a big difference.

Answer the questions below with estimates or exact numbers if they’re easy to find:

  • Does your paycheck cover all the bills and leave room for savings and a little fun? If not, do you need more income, smarter spending habits, or both?
  • Do you have an emergency fund? How much is in it?
  • Do you have a car loan, student loans, credit cards, or other debt? Are you making minimum payments or paying extra?
  • Are you saving for retirement through work or on your own?

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3. List the expenses you know about for the year.

Some financial surprises aren’t surprises at all. They’re expenses we didn’t (or forgot to) plan for. Grab your laptop or a piece of paper. Write down every month, then list the expenses you already know about.

For example:

  • Essentials: food, housing, utilities, transportation
  • Kids: sports fees, music lessons, school trips
  • Life events: weddings and graduations, whether you’re hosting or attending
  • Home: updates or remodeling plans
  • Gifts: birthdays, holidays, special occasions
  • Entertaining: holidays, family visits, celebrations.
  • Travel: vacations or trips to see loved ones
  • The unexpected: money in savings for when the fridge goes out before the big party

Seeing your expenses across the entire year can help you make smarter choices, like using that extra money in June to pay for tuition in August or holiday gifts in December.

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4. Decide what you want your money to do this year.

Instead of challenging yourself with a lofty goal, set one or two realistic goals for the year. It’s the small wins that motivate you to keep going.

A few examples:

  • Pay off one credit card or loan.
  • Save two months of expenses in a savings account. (Look for a high-yield savings account like Flagstar Performance Savings to grow your money faster.)
  • Save $3,000 toward a new car, appliance, education, or another near-term goal.

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5. Come up with a game plan.

Now that you know what you want your money to do, the next step is making a plan to get there. That could mean earning more, selling items you no longer use, cancelling subscriptions, or cooking more meals at home. There’s no one-size-fits-all approach.

If you like having a framework, try one of these popular options:

  • The 50/30/20 rule: 50% of your paycheck goes to needs, 30% to wants, and 20% to savings.
  • Dave Ramsey’s cash envelope system: Divide your monthly income into envelopes marked with spending categories. When an envelope is empty, spending in that category stops until the next month.
  • Zero-sum budgeting: Every dollar has a job, based on your priorities and goals.

Flagstar can help, too. Want personalized tips for improving your finances? Sign into your account and click on My Credit Score. Need an effortless way to save money? Set up automatic transfers from your checking account to your savings.

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Remember, you don’t have to do this alone

Flagstar is here to help you take the next step. Stop by a branch and speak with one of our experienced bankers to learn how we can support you along your financial journey.

Interested in current CD rates or a high-yield savings account?

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Earn up to 3.80% APY1 with a Certificate of Deposit (CD)

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Earn 3.20% APY2 with Flagstar Performance Savings

Grow your money with a great savings rate.

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Round Up with Flagstar®

Round your purchases up to the next dollar and put the difference into a savings account.
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Earn 3.20% APY2 with Flagstar Performance Savings

Grow your money with a great savings rate.
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Save yourself a step. Direct deposit sends your paycheck and other payments directly to your Flagstar account.

1Annual Percentage Yield (APY). 3.80% APY is accurate as of 6/22/2026 and available as a 12-month term. Fees could reduce earnings. Withdrawals may result in imposition of applicable early withdrawal penalties. $500 minimum opening deposit required. Maximum deposit is $10 million. 'New Money' is defined as funds that are not currently deposited in any account at Flagstar Bank. Not available for public units or Business CDs. Certain restrictions, including area restrictions, may apply. Offer subject to change or cancellation at any time without notice. Must present offer at account opening. Limited-time offer. Important information will be provided to you in the disclosures you receive during the account opening process. Please contact your local branch for more information.

Flagstar Performance Savings

2Annual Percentage Yield (APY) is accurate as of 6/22/2026. Tier 1 $0 – $9,999.99 features an annual percentage yield of 0.10%. Tier 2 $10,000.00 – $24,999.99 features an annual percentage yield of 0.10%. Tier 3 $25,000.00 – $49,999.99 features an annual percentage yield of 3.20%. Tier 4 $50,000.00 – $99,999.99 features an annual percentage yield of 3.20%. Tier 5 $100,000.00 – $499,999.99 features an annual percentage yield of 3.20%. Tier 6 $500,000.00+ features an annual percentage yield of 3.20%. The interest rate(s) and annual percentage yield(s) are variable and may change at any time before or after the account is opened. Initial minimum opening deposit to earn the higher interest rate on the Flagstar Performance Savings account is $25,000 and must be “new money,” which is defined as money that is not currently on deposit in any Flagstar Bank account (except maturing CDs). Additionally, (i) account must be funded within 90 days of the approval date, and (ii) early account closure fee may be imposed for accounts closed within 180 days. A maintenance service charge of $15 will be imposed every statement cycle if the average daily collected balance in the account is less than $10,000. The maintenance service charge will be waived if you are the tax reported owner on this account and you are an owner on a Flagstar personal checking account. Fees may reduce earnings. Personal accounts only. Limited time offer. Area restrictions may apply. If you are a Private Bank client, please contact your Private Client Group to enroll.