An End-of-Year Financial Checklist

As the end of the year approaches, it’s time to start thinking about what comes next for you in the New Year. Reviewing your financial situation can help you evaluate your financial health and set the stage for wealth growth in the coming year. Here is an end-of-year financial checklist to work through as you pursue being on top of your financial game.

1. Review your budget.

The first step in your end-of-year review should be assessing your current budget. Did you stick to your planned budget throughout the year? If not, identify areas where you overspent or underspent, then make necessary adjustments for the coming year. For example, did you underspend on your retirement savings contributions? If so, adjust your contribution amount now.

It’s essential to analyze your current debt situation during your budget review. Understanding how much you owe and what interest rates you’re paying can help you quickly prioritize which high-interest loans to pay off first and then next as you decrease your debts.

2. Update your goals.

Your goals need periodic reviews and updates. These could include paying off a particular debt, saving more for retirement, or building an emergency fund. Reflect on your progress towards these goals and revise them as necessary.

3. Check your credit score.

Another critical aspect of the end-of-year financial review is checking your credit score. Improved credit scores could lead to lower interest rates on loans, so monitoring your credit score is crucial. Monitoring your credit score also helps you check for fraud or if your Social Security number has been compromised. Make checking your score at least a bi-annual event.

4. Consider tax planning.

Tax planning is essential to financial management. With tax laws constantly changing, it’s important to be aware of any changes that may affect your tax situation. Consult with a tax professional to help you understand if there are any actions you can take now before the year-end to help lower your tax liability.

5. Review your investment strategies.

It is essential to understand how your investments performed over the year. If your investments aren’t performing as you expected, or your goals have changed, it may be time to reconsider your strategies.

6. Assess your insurance needs.

Our insurance needs may change as we go through life. Take time to assess if your current insurance policies are still adequate; if not, you may need to increase your coverage or purchase more insurance. An insurance review with financial and insurance professionals can help you determine suitable coverage amounts for your situation.

7. Set up automatic savings contributions.

Automatic savings contributions can help you save more each month as you work toward your savings goal. By automating, you can ‘set it and forget it,’ making saving more accessible.

8. Review your plan for retirement.

Planning for retirement is essential, no matter your age. Work with financial and insurance professionals to review your current retirement savings strategies, goals, and future retirement income needs, and make necessary adjustments to your plan now. Regular review provides a framework as you work toward an independent retirement.

An end-of-year financial review might seem overwhelming, but it is essential for maintaining an accurate picture of your financial health and goals. Follow this checklist and speak with a financial or insurance professional if you have any questions or concerns. They can help you navigate your situation and needs and provide personalized recommendations.

SWG3878283-0924C Disclosure: This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

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