A new year is the best time to step back and make sure your financial life is pointed in the right direction. For North Texas families — many of whom are managing growing incomes, new homes, and rapidly changing life circumstances — a structured annual financial review can make an enormous difference over time. Here's the checklist we recommend every NTX household work through at the start of 2026.
1. Review and Update Your Budget
If you bought a home in Prosper, Celina, or Frisco in the past year, your monthly expenses have changed significantly. Property taxes, HOA fees, utilities, and mortgage payments all need to be reflected in an updated monthly budget. A good budget isn't about restriction — it's about making sure your spending aligns with your actual priorities. Start by tracking what you spent in 2025 and identify any categories that drifted beyond what you intended.
2. Max Out Tax-Advantaged Accounts Early
For 2026, the 401(k) contribution limit is $23,500 ($31,000 if you're 50 or older). IRA contribution limits are $7,000 ($8,000 if 50+). If your employer offers a match, make sure you're contributing at least enough to capture the full match — that's an immediate 50–100% return on those dollars. If you're self-employed or run a small business in Collin County, a SEP-IRA or Solo 401(k) can allow significantly higher contributions.
3. Review Your Insurance Coverage
Life changes fast in North Texas. If you've had a child, bought a home, changed jobs, or seen your income grow substantially, your life insurance coverage may no longer be adequate. As a general guideline, most financial planners recommend coverage of 10–12 times your annual income. Review your beneficiary designations at the same time — these override your will and are often overlooked after major life events.
4. Check Your Emergency Fund
Three to six months of living expenses in a liquid, accessible savings account is the standard target. For NTX homeowners, "living expenses" should include your full mortgage payment, property taxes, and any HOA fees — these are obligations that don't pause during an emergency. High-yield savings accounts are currently paying meaningful rates, so make sure your emergency fund is actually earning something while it sits.
5. Review Your Investment Allocation
After strong market years, portfolios often drift away from their intended allocation. A portfolio that started the year at 70% stocks may now be at 78% — more risk than you originally intended. An annual rebalance brings things back into alignment and can be done in a tax-efficient way inside retirement accounts to avoid triggering capital gains.
6. Set One Specific Financial Goal for 2026
Beyond the checklist, the families that make the most financial progress each year are the ones who set one clear, specific goal and work toward it consistently. It might be paying off a car, saving for a specific vacation, building a college fund to a certain balance, or meeting with a financial advisor for the first time. Pick one thing and put it on the calendar.
If you'd like help working through any of these areas for your specific situation, NTX Financial Advisor connects North Texas families with trusted local advisors who can guide you through each step.
NTX Financial Advisor connects North Texas families and professionals with trusted, local financial advisors. Schedule your free consultation today.