As your income changes, so do your unique financial needs. But that doesn’t mean some general guidelines may not be helpful in planning your monthly budgets for 2026.
Read on for advice from some money experts with general tips for financial growth at different income levels.
No Income or Unemployed and Seeking Employment
“Focus first on getting your immediate needs met,” said Annie Cole, money coach and founder of Money Essentials for Women. “Explore resources like unemployment benefits, SNAP food benefits and temporarily pausing payments on credit cards or negotiating payment terms for ongoing debts. Leverage free online resources at the library, workforce centers or your prior university to help with job seeking.”
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Under $81.6K Annual Income
The exact amount of $81,604 is the 2024 United States median household income, per the U.S. Census Bureau. At this level (or below), Cole said to focus on maximizing your budget, cutting unnecessary expenses and enjoying life to the fullest with low-cost activities.
“Consider negotiating your interest rates or monthly payments on debts, save on groceries by meal prepping and shopping seasonal foods and consider career growth opportunities,” she added. “Leverage community resources as needed.”
$81.6K to $120K Annual Income
When your income exceeds your monthly needs, according to Cole, it’s time to focus on sustainability for the future. This should be the case for annual incomes of $81,604 to $120,000. First, she said to set aside a small amount monthly until you have enough for an emergency — experts suggest having one to three times your monthly expenses in savings for emergencies.
Then (or concurrently), focus on retirement investing. The goal, Cole said, is to set aside up to 15% of your monthly income into a retirement account (401k plan, Roth account, etcetera). If you’re maxing out your retirement account, consider opening a brokerage account for additional investments. Set aside extra money to reach big-picture goals like a down payment or trip abroad.
$120K or Higher Annual Income
If you’re meeting your monthly needs, maxing out your investment opportunities and saving towards big-picture goals, Cole said to consider the following additional steps.
- Set up a will or trust to protect your growing assets.
- Consider diversifying your investments through real estate, business and other investments,
- Consider donating your time or money to a cause that’s meaningful to you.
- Consider additional investment vehicles like a child’s education fund.
All Income Levels
“The framework that works across all income levels is this — pay yourself first and automate savings, eliminate high-interest debt — anything over 7%, build your emergency fund for three to six months and then invest the rest. In that order. Always,” said Andrew Lokenauth, from Fluent in Finance.
“One more thing most advisors won’t tell you is that your budget should shift every three to six months. Life changes, costs change and income changes. I review mine every quarter. The budget that worked in March won’t work in September,” Lokenauth added.
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This article originally appeared on GOBankingRates.com: What Different Income Levels Should Prioritize in Monthly Budgets in 2026
