Getting your money right before the end of the year

2 1 minute read

As the year draws to a close, it’s a crucial time to make smart financial moves to position yourself well for the upcoming year. Here are ten essential actions to consider:

Set New Financial Goals: Review and update your financial goals. It’s better to start this process before the new year for better planning and accountability.
Audit Your Bank Accounts and Reset Your Budget: Analyze your expenditures to identify areas where you can cut back. This might include evaluating subscriptions, insurance premiums, or any unnecessary fees.
Check Your Credit: Regularly reviewing your credit report is vital, especially if you plan to borrow money or make a significant purchase soon. This can help identify errors and improve your credit score.
Optimize Your Employee Benefits: During open enrollment, review your benefits package and make sure you’re taking full advantage of what’s offered, like health insurance, retirement plans, and FSAs.
Use Remaining FSA Money: If you have a medical FSA, remember it’s often “use it or lose it.” Plan to use any remaining funds before they expire at year’s end.
Plan for the Holidays: Set a budget for holiday spending to avoid financial strain. Include gifts, food, and travel in your plan.
Rebalance Your Investments: Adjust your investment portfolio to ensure it aligns with your risk tolerance and financial goals.
Reassess Insurance and Estate Plans: With changes in life circumstances, it’s prudent to review your life insurance, disability insurance, and estate planning documents to ensure they still meet your needs.
Review Past Year’s Income and Expenses: Analyze the entire year’s spending and earning patterns. This can help identify surprises and opportunities for improvement.
Record Your Net Worth: Tracking your net worth over time can be an effective way to gauge your financial progress. Compare it to the previous year to assess how your financial situation has evolved\.