Episode 130 Show Notes

Episode 130 Show Notes

T HE 1ST SHOW OF THE NEW YEAR

1- Well were at it again, a New Year, New promises to ourselves to do better with our health, our money, our jobs, our relationships, getting to the gym and so on. You all know exactly what I mean. So here we go!

About 40-50% of people make New Year’s resolutions, but very few stick with them long-term; some research shows only 9% succeed, while others find 46-75% quit within months, with top goals being financial (saving, budgeting) and health (exercise, diet)

. While specific spending figures vary, many resolutions involve financial goals like saving more, spending less, or paying off debt, with people investing in related apps, gym memberships, or financial planning tools, though actual spending data isn’t clearly defined in these results. How Many Make Resolutions

• Around 40-50% of Americans set New Year’s resolutions annually.
• Common goals include better money management, weight loss, exercise, and quitting smoking. 

How Many Keep Them

• Success rates are low; some sources suggest as few as 9% achieve them.
• Progress drops quickly: about 75% last the first week, 71% the first two weeks, and 64% after a month, with only 46% remaining after six months.
• By the end of the year, many abandon them, with some reports showing 70-89% failure rates, especially among younger generations. 

How Much Money Is Spent

• Financial resolutions are very popular, with over half focusing on saving more, spending less, or paying off debt, driven by inflation concerns.
• People spend on related tools like financial apps, gym memberships, and insurance, but specific total spending amounts aren’t detailed in these results.
• Goals shift: vacations and short-term milestones often top savings goals, especially for younger adults. 
• Gym memberships typically spike by

30% to over 50% every January compared to other months, due to New Year’s resolutions related to health and fitness. 

Key Statistics on the New Year’s Spike

• Membership Sales Increase: Around 12% of all new gym memberships for the entire year are sold in January.
• Attendance Surge: Gyms see a 30-50% increase in actual visits during the first two weeks of January compared to December.
• Top Resolution: Improving health and fitness consistently ranks as one of the most popular New Year’s goals, with nearly half of Americans setting such resolutions. 

The Drop-Off

Despite the large initial spike, the enthusiasm often wanes quickly: 

• Attendance begins to drop mid-February.
• By the end of March, many new members have stopped attending.
• Only a small percentage, around 8%, of people successfully maintain their resolutions throughout the year. 

Gyms capitalize on this predictable cycle by offering various promotions in January, such as waived enrollment fees or discounted trial periods, to attract the influx of “resolutionists”. 

Yes, banks generally see an increase in activity and new savings account openings at the beginning of the year, a trend sometimes referred to as the “

January Effect“. 

This seasonal trend is driven by several factors:

• New Year’s Resolutions: Many individuals make financial resolutions to improve their savings habits, leading them to research and open new accounts in January.
• Marketing Incentives: Banks and credit unions often launch aggressive marketing campaigns and offer attractive cash bonuses and promotions for new savings and checking accounts at the start of the year to capture this wave of motivated customers.
• Deposit Flows: There is a general seasonal outflow of deposits from the banking system in January and February, so banks actively compete for new funds by increasing rates and offering incentives to attract new customers.
• Tax Planning: Activity also picks up in March and April as people manage their finances around tax deadlines. 

TOP 3 CHANGES FOR THIS YEAR

The top three significant changes for

2026 primarily relate to the new federal tax law, often referred to as the “One Big Beautiful Bill Act” (OBBBA), and annual inflation adjustments. 

The key changes include:

• Increased Standard Deductions: The standard deduction amounts have been significantly raised. For the 2026 tax year (filed in early 2027), the amounts are $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household.
• New Deductions for Specific Income: The new legislation introduces several new, targeted deductions:
  • An additional $6,000 tax deduction for eligible seniors (age 65 or older).
  • A deduction for qualified tip income up to $25,000.
  • A deduction for qualified overtime pay up to $12,500 per person.
  • A deduction for up to $10,000 in interest paid on loans for new, U.S.-assembled vehicles.
• Expanded Child Tax Credit and SALT Cap Increase: The maximum Child Tax Credit has increased to $2,200 per qualifying child. Additionally, the federal cap on the State and Local Tax (SALT) deduction has been temporarily raised from $10,000 to $40,000 for many taxpayers. 

These changes aim to provide tax relief for many Americans, though the IRS has also announced that the free Direct File electronic filing system will not be available for the 2026 season. For detailed information on all tax changes, you can consult official IRS guidance on IRS.gov.