Want to save money this year? Here’s advice from a local expert
Did you make a New Year’s resolution to tighten up your budget?
5 EYEWITNESS NEWS sat down with a financial advisor on New Year’s Day for practical advice on saving money and building wealth in 2026.
“The first thing people should always make sure they have is a cash reserve,” said Bjorn Amundson of Quarry Hill Advisors in St. Paul. “I always recommend you have three to six months of your spending in a cash reserve. Normally, it’s best to be in a high-yield account, so you’re getting some interest on your cash reserve as well.”
Then, he recommends looking at the biggest changes you can make with your finances.
“A lot of people think that the way to wealth is to cut out the $6 coffee or something but I’m more the philosophy of looking at, what are the big things in your budget that really move the needle? What are the really big things you can change so you can have a nice amount of free cash flow? Sometimes that means a different apartment, sometimes that means paying off a car or paying off a credit card,” Amundson said.
Amundson also suggests setting up two checking accounts.
“Have your ‘core’ checking account that all of your essentials are going to come out of, so that would be your rent, your heating bill, maybe your life insurance payment. And then have that account shoot a certain amount into your ‘spending’ account every month,” Amundson explained. “A lot of the time when you have the ‘spend’ account separate, you’re going to start to notice those little things that are sucking up money from you. If that ‘spend’ account is building up a little bit, well, you can go on vacation. But if it’s drawing down, then you better not go out to eat and you better start getting a little bit tighter.”
Amundson also recommends slashing unnecessary subscriptions and negotiating phone or internet plans.
“I’ve had a lot of luck switching internet providers. If you switch between them every couple of years, you can normally get a new introductory rate that way,” said Amundson.
He also suggests writing down your net worth every month, including your checking account, savings account, 401k and home equity, and then tracking your net worth over the course of the year.
“So by next year, you can look back and see all the progress you’ve made, and it really is encouraging,” Amundson said.