Core Insights - Despite a turbulent year, 70% of Americans feel financially stable compared to last year, indicating a general sense of financial resilience [1] - Inflation remains a significant concern, with 45% of Americans worried about rising everyday prices, an increase from 37% the previous year [2] - Experts suggest that there may be signs of relief from inflation, with projections indicating slower increases in at-home food costs [3] Financial Planning - Creating a financial plan is essential for navigating potential challenges in the new year, helping to transform anxiety into actionable steps [4] - Fidelity recommends that individuals spend no more than 60% of their income on essential expenses, reserving the remainder for retirement, savings, nonessential expenses, and emergency funds [5] Emergency Preparedness - Approximately 31% of Americans are concerned about unexpected expenses, highlighting the importance of having an emergency fund [6] - It is advised to start with at least $1,000 in an emergency fund and aim to save enough to cover three to six months' worth of essential expenses [6][7] - Keeping emergency funds in a money market fund or high-yield savings account is recommended for better accessibility and potential earnings [7] Healthcare Costs - Healthcare and insurance costs are a major concern for 28% of Americans, who anticipate higher bills in 2026 [8] - Budgeting for healthcare costs can vary widely based on individual plans, but it is generally advised to set aside enough to cover deductibles or out-of-pocket maximums [8]