As the new year of 2026 gathers pace, many people are setting ambitious financial resolutions, only to find the process overwhelming. However, a significant shift in approach is emerging, particularly among younger adults, who are finding empowerment not in grand gestures but in manageable, daily actions.
The Power of Incremental Progress
Research from People’s Pension indicates that young adults are actively seeking ways to reset and gain control over their finances this year. Crucially, the study found that 70% of respondents reported that small, everyday achievements, rather than sweeping life changes, made them feel more positive and in command.
To understand this trend, we spoke to Roxie Nafousi, a best-selling author and self-development coach. She explains that the human brain is naturally wired to avoid feeling overwhelmed. "When a goal feels too large, instead of moving forward we actually just freeze," Nafousi states. "It feels so huge that suddenly all our fears, doubts or insecurities surface."
She uses a powerful analogy: "I often think about goals as like going on a hike. When you see the top of the mountain, you think 'there's no way I'll get there,' and you want to turn back. But by taking one step at a time, you eventually look back and realise how far you've come."
Applying this to finances, Nafousi emphasises that small steps lower the threat response, making action feel safe and doable. "Marking small moments and acknowledging your progress builds self-worth, momentum, and confidence," she adds. "People start to see themselves as someone capable of managing their money."
Why Gen Z is Embracing a New Mindset
Nafousi observes that younger generations, particularly Gen Z, are leading this change in perspective. "There is more awareness of the importance of actually enjoying life as it is," she notes. "When I was growing up, there was an idea that life is hard and work should be hard. We didn't focus on how to make day-to-day life feel better."
"Now, there's more information available on how to have goals while also cultivating gratitude and daily practices that enhance wellbeing—whether that's mental, emotional, physical, or financial," Nafousi explains. This holistic approach is reshaping how people, especially the young, engage with their financial health.
Practical Small Steps for Financial Health
Nafousi recommends several actionable strategies for those looking to build sustainable financial habits in 2026.
Firstly, work backwards from an annual target. "Think about how much you want to save by the end of the year," she advises. "Then break it down: ask yourself how much you need to save each month to reach that goal. Keep it simple."
Secondly, schedule regular financial reviews. Setting up a quarterly or half-yearly check-in allows you to assess any income changes and adjust contributions to savings or pensions accordingly.
A third, highly effective step is a subscription audit. "This is especially helpful for Gen Z," Nafousi suggests. "Go through all your subscriptions and recurring payments. So many of my friends were paying for two Netflix accounts without realising. I was paying for a cooking app I never used for three years."
Eliminating these unnoticed drains can free up significant funds. "Now I've saved that extra £50 a month, maybe I could add it to my pension or annual savings," she says.
Rewiring Your Relationship with Money
Underpinning all these actions, Nafousi stresses the critical need to examine our core beliefs about money. "Our relationship to everything in life is important because the beliefs we hold change how we behave and feel," she says.
"If we believe that money is scarce, that we're not good with it, or that it's not available to us, we create self-fulfilling prophecies. It's vital to look at our belief systems in all areas, including how we view money."
By combining a conscious mindset shift with small, consistent actions, the path to financial control in 2026 becomes less daunting and more achievable, fostering a sense of confidence and lasting wellbeing.
