Your Complete Year-End Financial Checklist

As we approach the end of the year, it’s not just the festive decorations and holiday plans that should be on your mind—it’s time to ensure your finances are ready for the upcoming year. The transition between years provides an excellent opportunity to assess your financial health and set the stage for a prosperous future.

Take a moment to go through this year-end financial checklist so you can usher in the new year with plans and resolutions for financial improvement.

1. Review your budget

Is your current monthly budget working for you? How did you do with your holiday spending budget? Are you stretching some spending categories or finishing each month in the red? Reviewing where you spent this year’s money will help you make better choices for the new year.

While planning for the coming year, make sure to include a method for tracking your spending. You can do this on a spreadsheet or you can simply tag items in your financial account.

2. Top off your retirement plan

If you have a 401(k), check to see that you are taking full advantage of your employer’s matching contributions. If you haven’t contributed as much as you can, you have until the end of the year to catch up. Check out this 401(k) guide from the IRS for more info.

3. Check your progress on paying down debt

Review your outstanding debts from one year ago and hold up the amounts against what you now owe. Have you shed any debt from one year ago, or is your debt growing? If you’ve made no progress, or your debt has deepened, consider taking bigger steps toward paying it down in the new year.

4. Get a free copy of your annual credit report

The end of the year is a great time for an annual credit checkup. You can request a free copy of your credit report from all three credit reporting agencies once a year. Get your annual credit report here, and look for fraudulent charges and other signs of possible identity theft. 

5. Review your investments and asset allocation

You may need to make some adjustments to your mix of stocks, bonds, cash and other investments to better reflect your personal financial goals, as well as the current state of the economy and market. With high rates on even 6-month certificates, now is a great time to put funds into a certificate at Scott Credit Union.

6. Review your beneficiaries

Has your family situation changed during the past year? If it has, be sure to switch the beneficiaries on your accounts and life insurance policies to accommodate these changes.

7. Review your tax withholdings

Review your W-4 to see if the amount of tax withheld from each paycheck needs to be adjusted. You can always ask your accountant for help. 

These are just a few of the many ways you can prepare financially for the coming year. With a little attention to some often-overlooked details, a little perseverance and a little mindfulness throughout, you’ll start the new year with a strong financial foundation.

For more tips and advice on how to have a strong financial new year, check out Scott Credit Union’s financial literacy webpage and financial education playlist on YouTube.