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ABP Live Your Money Your Life: How The First Quarter Of 2026 Will Shape Your Money Decisions

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The new year often feels like a financial reset, arriving at a time when personal planning overlaps with the final quarter. Budgets are drawn up, goals are set, and there is a sense of control. For a short while, financial plans have been manageable. Then routine expenses, unexpected costs, and old habits begin to return. What many people overlook is that the choices made in the first three months quietly shape the rest of the year. In 2026, with borrowing costs, credit access, and household expenses under close watch, these early decisions matter more than ever.

Building Steady Spending And Saving Habits

The first quarter is when spending patterns begin to settle after year-end expenses. This makes it the right time to bring structure back to monthly finances. A simple, realistic budget helps prevent small expenses from adding unnoticed. Minor adjustments, such
as increasing savings slightly or cutting back on non-essential spending, are easier to maintain when done early. Habits formed now tend to last longer than changes attempted later in the year.

Starting Tax Planning Before Pressure Builds

Tax planning works best when it is gradual. The early months provide clarity on income, fixed obligations, and likely bonuses. This allows individuals to choose the right tax structure and spread investments evenly throughout the year. When tax decisions are postponed, they often lead to rushed choices driven by deadlines rather than need. Planning early improves cash flow and reduces stress closer to filing season.

Letting Credit Discipline Set The Tone

Credit behaviour in the first few months often defines how lenders view borrowers for the rest of the year. Timely repayments, controlled credit card usage, and avoiding unnecessary credit applications help establish a stable profile. Early discipline makes it
easier to maintain consistency later. With lending decisions increasingly driven by behavioural data, these patterns influence both access and affordability of credit.

Giving Investments Time To Work

Investments benefit most from time, not timing. Beginning systematic investments early allows compounding to work quietly in the background. It also reduces the urge to react to short-term market movements later in the year. Clear asset allocation decisions made
early help investors stay focused on long-term goals rather than market noise.

Preparing For Surprises Before They Appear

Unexpected expenses rarely arrive with warning. Strengthening an emergency fund early provides a cushion before financial pressure builds. Reviewing insurance coverage during this period also helps, as decisions taken without urgency tend to be
more balanced. This preparation reduces reliance on high-cost borrowing later.

The first 90 days of the year are not about dramatic changes, but about calm planning and steady choices. Small decisions made early shape habits, priorities, and financial confidence for the rest of the year. A measured start often makes the remaining months easier to manage. In personal finance, consistency at the beginning usually delivers stability at the end.

(The author is Associate Analyst, Communications, BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)

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