If budgeting spreadsheets and lofty financial goals leave you stressed rather than inspired, consider another New Year’s ritual: an end-of-year money audit.
The word “audit” might not sound all that fun. But just like an accountant, it’s helpful to approach your money behavior as neutral and impersonal as possible.
“At the end of every year, people tend to jump straight into resolutions: cutting spending, tightening budgets, and promising themselves they’ll ‘finally get disciplined’ in the new year,” Jack Howard, Head of Money Wellness at Ally Bank, told Fast Company.
“But I think the most meaningful financial reset starts somewhere much quieter: with your emotions. One of the most overlooked parts of financial wellness is understanding the emotional habits behind our money choices.”
It’s not about creating a strict budget; it’s taking stock of the emotional habits behind your spending. When you understand what’s working (or not), you can make more intentional choices about what to amplify, adjust, or leave in 2025.
Before the holidays get rolling, it can be helpful to take a pause to conduct an emotional money audit. December is a great time to do this because you can go into the new year feeling confident about where you are financially and plan for the upcoming year.
Here’s how Howard recommends people approach their own audit, to start off 2026 on the right financial footing.
