While the saying, “Money can’t buy you happiness” may be true, financial security can set you up for peace of mind in the new year and peace of mind is invaluable. According to Fidelity, most Americans certainly feel this way as 64% are working toward making financial resolutions in 2026. Thankfully, our Local 26 members have a solid retirement plan in place through our Local 26 Pension Plan and Local 26 Individual Account Plan but what about creating a plan for general expenses you may incur in life, such as managing credit card debt, saving for college, weathering unplanned car or home repairs, or creating a vacation fund?
Of course, you can take stock of your finances, and change course if need be, at any time of year, but why wait? You can always adjust how you are allocating your money as the months go on but starting right away can not only help your money grow if you put it in the right investment vehicles; it could actually save you money right away if you start paying down debt sooner than later.
Once you’ve set your sights on strengthening your financial well-being, set aside some time to thoroughly inventory your finances. Take note of your salary, your expenses, your debt, and the interest rates you may be paying on carried debt. Get organized and get a clear picture of your finances and your financial obligations. Understand what your take-home pay is; know what your essential expenses are, such as housing, food, car payments, etc.; and really dig into how much you spend on non-essential things like entertainment and shopping. Here’s a critical expense to look into: interest rates on carried debt such as credit cards. Don’t forget that every month in which you carry debt on a credit card, you are throwing money out the window due to the interest you are paying. At 15%, 20% or more, that’s a lot of money that could be allocated elsewhere. Make paying down your debt a priority on your way to financial peace of mind.
There are some things that are simply inevitable, that you just can’t predict, but yet you know will happen at some point, like a car or home repair. You should expect the unexpected and have an emergency fund set aside for such costs. Start small and set a target, perhaps $1000. A money market fund or high-interest savings account would be great places to save this money.
Finally, take note of what you may be paying in interest on such things as credit cards, car loans, or home equity loans, for example, and focus on paying down any debt that has an interest rate higher than 6% first. Paying off more than the minimum payment each month will not only help reduce the amount you owe; it will reduce the amount you are paying in interest as the principal will be lower. If you have multiple areas of debt with high interest payments, be sur
e to pay at least the minimum balance on each account but try to pay more than the minimum on the debt with the highest interest rate. The sooner you can wipe out your high-interest debt, the sooner you can put that money into productive savings accounts.
For more information about our Pension Plan and Individual Account Plan, visit the EWTF website at ewtf.org to view the Plans’ Summary Plan Descriptions. Also, Fidelity advisors are available at 866-84-UNION Monday through Friday 8 a.m. to midnight or at any brick-and-mortar location all around the country, many right here in Local 26’s jurisdiction.