The financial landscape is shifting fast. Interest rates are easing, AI is moving from buzzword to everyday tool, and new tax rules are on the horizon. Even the side-hustle economy is getting a tech upgrade. These changes could open doors—if you know where to look.
Here are 4 trends to watch and practical steps to make them work for you.
1. AI moves from buzz to bottom line
What’s changing: AI isn’t just powering chatbots anymore. It’s increasingly embedded in everyday money tools: budgeting apps that predict spending, robo-advisors that help tailor portfolios, and bank apps that surface fee alerts, optimize cash, and flag fraud earlier. By 2026, conversational AI, embedded finance, and biometric security are expected to be standard features.1
Why it matters:
- Smarter automation can help plug hidden leaks like late fees, unused subscriptions, and idle cash.
- Personalized nudges may be able to help keep your finances on track. One example could be automatically routing extra cash to help pay off debts or get invested.
- AI-driven fraud detection and biometric authentication could help make your accounts more secure.
Consider:
- Exploring planning tools (like Fidelity’s digital tools) that help you track spending, set goals, and stay on course. Fidelity’s digital tools use advanced algorithms and AI-driven features to help simplify investing and enhance security.
- Using a robo advisor that provides low-cost, professional investment management, like Fidelity Go®. At Fidelity, AI insights are combined with human judgment, even in our robo advisor. In the case of Fidelity Go, we combine our digital offering with access to 1-on-1 financial planning and coaching via telephone for clients that invest at least $25,000 in a Fidelity Go account.
- Strengthening your security by enabling passkeys, biometrics, and account alerts for financial accounts. Fidelity’s systems use advanced anomaly detection to help spot unusual activity early. Read more about security at Fidelity.
2. Interest rates may move lower
What’s changing: After the Fed’s 2025 cuts, forecasts point to gradually lower rates into 2026, with 30-year mortgage rates projected to end 2026 around 5.9%, down from recent highs in the 6%–7% range.2 Short-term yields are also expected to decline if the easing cycle continues. That means today’s best cash yields may not last.
Why it matters:
- Savings yields may slip: Rates on savings accounts, CDs, and money market funds typically fall after Fed cuts.
- Borrowing costs may ease: Lower mortgage and loan rates could create opportunities to refinance or buy with confidence.
- Be aware of the risks associated with changing interest rates: Falling rates can increase reinvestment risk and impact bond returns.
Consider:
- Locking in today’s yields: Consider a CD or bond ladder to help balance liquidity and yield. Read Fidelity Viewpoints: 7 ways to earn more on your cash
- Running the numbers on refinancing: If your mortgage or other loans carry high interest rates, explore whether refinancing could lower your monthly costs. Read Fidelity Viewpoints: 4 moves to consider when rates drop
- Revisiting your bond strategy: Clarifying what role you want bonds to play in your portfolio may help you position yourself for future interest rate uncertainty. Read Fidelity Viewpoints: A fresh outlook for fixed income
3. Side-hustle economy 2.0
What’s changing: Starting a side hustle may be getting easier. AI-powered tools can handle invoicing, proposals, and even marketing—that may mean less hassle to launch your business and get paid.3
For example, apps like Monarch Money and Fiscal.ai3 use generative AI to help individuals track spending, categorize expenses, and even run investment scenarios—all through conversational prompts.
Why it matters:
- Lower bar to getting started: Built-in checkout, instant payouts, and AI-generated contracts may help you launch quickly.
- AI leverage: Automate tasks like bookkeeping or image editing to boost productivity.
Consider:
- Picking a side hustle: Consulting, design, tutoring, and freelancing are among the popular side hustles that can be relevant across many areas of expertise. Read Fidelity Smart Money: 20 side-hustle ideas that could bring in cash
- Automating the boring stuff: Explore tools that could help with invoicing, expense tracking, and taxes so you can focus on the things you like to do.
- Fortifying your finances: Start by setting aside a fixed percentage for taxes—about 30% is a commonly cited estimate for freelancers. Next, ensure that you’re prioritizing saving and investing for the future as you build your business.
- Save for health care: If you have access to a health savings account, consider saving at least enough to cover expected qualified medical expenses.
- Save for emergencies: Freelance income can be uneven, so aim to keep at least 3–6 months of essential expenses in a liquid account. Try to save at least $1,000 to start.
- Bolster retirement savings: Consider tax-advantaged options like a 401(k), SEP IRA, or Solo 401(k) if you qualify, or contribute to an IRA. These accounts can help reduce current taxable income and keep your money potentially growing for the long term. Fidelity suggests saving at least 15% of pre-tax income for retirement, including any employer match you may have.
- Invest for growth potential: Once taxes and savings are covered, consider allocating any remaining funds toward investments aligned with your goals and risk tolerance. Even small, consistent contributions can compound over time.
Tip: Keeping business and personal accounts separate makes it easier to track expenses and substantiate deductions.
4. New tax rules: Small changes, real money
What’s changing: The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, makes many 2017 tax provisions permanent and introduces several changes, effective in 2026:
- Charitable giving floor: The OBBBA set a new floor of 0.5% of the taxpayer’s contribution base (which is, generally, adjusted gross income, AGI) which must be reached before itemized charitable gifts become deductible. That means a formerly fully deductible charitable contribution now must be reduced by 0.5% of an individual’s contribution base for the tax year.4
- Itemization cap for high earners: A new cap on the tax value of itemized deductions for top earners takes effect in 2026. The new legislation caps the tax benefits of itemized charitable deductions at 35% for those in the 37% marginal tax bracket.
- Charitable deductions for non-itemizers: Starting in 2026, even if you take the standard deduction, you can claim up to $1,000 (single filers) or $2,000 (joint filers) for cash gifts to qualified charities.
For an in-depth look at the new rules, read Fidelity Viewpoints: 3 big changes to charitable giving
Why it matters:
- Some donors in middle income levels could lose deductibility benefits under the new AGI floor.
- High earners may receive reduced benefits due to the new itemization cap for those in the highest marginal tax bracket.
- People who take the standard deduction may now qualify for a deduction for charitable contributions.
Consider:
- Updating your giving plan: If you itemize, talk to your tax professional about accelerating gifts into 2025 or frontloading via a donor-advised fund before the new floor and caps apply. A donor-advised fund can accept accelerated gifts while giving you the opportunity to grant in subsequent years, preserving the tax benefit available in the 2025 tax year while potentially aligning with your existing giving strategy.
- Reviewing your W-4: With all the upcoming tax changes, your itemization strategy may shift. Revisiting your W-4 could help ensure that you don’t over-withhold. That could give you more money to save and spend throughout the year (and a smaller refund at tax time). Read Fidelity Viewpoints: Guide to the W-4
Make 2026 work for you
Now is the time to position yourself for the year ahead. Consider locking in today’s higher yields before they fade, finding ways to put AI to work where it can save time or money, and turning any extra income into long-term investments. It’s also smart to review your tax strategy before new rules take effect. Small steps now can add up to big advantages later—your future self will thank you.