Heading into 2026, new trends and lifestyle pressures pose financial challenges for the middle class. Jeffrey Hensel warns against risky money moves, like relying on variable-rate loans as interest rates fluctuate. Inflation stability could lead to unexpected rate hikes, throwing budgets off balance. It’s crucial to manage debt wisely and consider fixed-rate options.

Keeping cash in low-interest accounts can erode its value due to inflation. Investing in higher-yield savings or investments can combat this. Avoid high-risk, online investments that promise unrealistic returns. Stick to reputable platforms aligned with your long-term goals to protect savings. Don’t try to time the housing market based on short-term interest rate forecasts.

Using home equity for everyday expenses can leave you financially vulnerable if housing prices drop or rates rise. Reserve home equity borrowing for strategic, long-term purposes like renovations or debt consolidation. Accumulating liquidity, fixing liabilities, and owning assets that guard against inflation are key for financial stability. Strategic planning, not speculation, leads to financial security in the future.

Read more at Yahoo Finance: 5 Worst Money Moves the Middle Class Could Make in 2026