Year-End Financial Check List
As we reach the end of the year, it’s the perfect time to make sure your finances are in tip-top shape before the clock strikes midnight on December 31st. Whether you're looking to save on taxes, maximize your savings, or set yourself up for a successful 2025, we’ve got you covered. it.
First up, let’s review those goals you set back at the beginning of 2024. Do you remember them? Whether you set big, audacious goals or kept it simple, this is the time to check in.
Maybe you planned to pay down debt, build an emergency fund, or start saving for that dream vacation or new home. Whatever it was, let’s take stock. Ask yourself these questions:
Did you achieve the financial goals you set?
If not, why? What obstacles did you face, and are they things you can overcome in the next few months?
Are there smaller wins you can celebrate, even if you didn’t reach the finish line?
If you’re a very organized person and are diligent about tracking your progress throughout the year, this may be a breeze. And if you haven’t, no worries—it’s not too late! Set aside some time in the coming days to gather all your financial statements including your checking account, credit card bills, and any loans and see where you stand. Knowing where you are now is the key to creating a realistic action plan for next year.
Quick tip: If you’ve fallen short of a savings goal, consider automating a larger portion of your paycheck into a savings account if you can. Don’t forget even small changes now can make a difference by year-end.
Next on the list—let’s talk taxes. I know, I know. It’s not the most exciting topic, but doing a quick tax checkup before year-end can save you a lot of money come April.
There are a few key things to think about here:
Retirement contributions: Have you maxed out your 401(k) or IRA contributions? For 2024, the maximum you can contribute to your 401(k) is $23,000 if you’re under 50, and if you’re 50 or older, that goes up to $30,500 thanks to catch-up contributions. For an IRA, the limit is $7,000 if you’re under 50, and $8,000 if you’re 50 or older. Contributing more to these accounts not only boosts your retirement savings, but it could reduce your taxable income.
Charitable donations: We talked about these in our previous blog. Did you know that any charitable donations you make by December 31st are eligible for a tax deduction? Even smaller donations can add up, and if you itemize your deductions, this could be a great way to lower your tax bill while giving back. Just make sure to keep all receipts or proof of donations for when you file your return.
FSA spending: If you have a flexible spending account (FSA) for healthcare or dependent care, now’s the time to check your balance. Remember, FSAs are typically “use-it-or-lose-it,” meaning if you don’t spend that money by year’s end, it could disappear. You might have a grace period or the ability to roll over a small amount into next year, but check with your provider so you don’t lose out on any pre-tax dollars.
As always, it’s a good idea to consult with a tax professional, especially if your financial situation is a bit more complex. Making sure you’ve taken advantage of every deduction and contribution opportunity before December 31st could add up to big savings!
Now let’s talk investments, When it comes to investments, one smart year-end move is to increase your contributions to investment accounts, especially if you’re in a position to do so. If you’ve had a good year financially, you might want to funnel extra money into tax-advantaged accounts like your 401(k), IRA, or even a Health Savings Account (HSA).
For example:
401(k): Many employers offer matching contributions, so if you’re not already maxing out your contributions to take full advantage of that free money, now’s the time. Even boosting your contribution by 1% can make a huge difference over time, thanks to compound growth.
IRAs and Roth IRAs: Depending on your income and eligibility, these accounts offer great tax advantages, either by reducing your taxable income today, that’s with a traditional IRA or offering tax-free withdrawals in retirement, that’s a Roth IRA.
HSAs: If you have a high-deductible health plan, contributing to an HSA is a triple win—you get a tax deduction for the contribution, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free too.
Even a small bump in contributions before December 31st can help grow your nest egg and give you a little extra tax break when it comes time to file. The key is consistency. Small increases each year can build significant wealth over time.
Now let’s move on to a critical piece of your financial puzzle—debt and credit. With interest rates fluctuating, it’s more important than ever to stay on top of your debt strategy.
Here are a few things to do before the year wraps up:
Check your credit report: You’re entitled to one free credit report from each of the major credit bureaus—Equifax, Experian, and TransUnion—every 12 months. Head over to AnnualCreditReport.com and pull yours. This helps you spot any errors, fraud, or areas for improvement and get those cleared up or create a plan to clear them up.
Pay off high-interest debt: If you have any credit card balances or loans with high interest rates, try to pay down as much as you can before the year ends. Even an extra payment can help reduce the interest you’ll pay over time, and getting rid of debt is one of the best gifts you can give yourself for 2025.
Consider consolidating or refinancing: If you’re dealing with multiple debts or high-interest rates, consider consolidating or refinancing. Talk to your credit union about options to see if it fits or is a good idea for your situation. There may be an option that could help you save money over time.
Keeping your debt in check now means less stress heading into the new year.
Finally, let’s take a moment to look forward. The end of the year isn’t just about tying up loose ends from 2024; it’s about setting yourself up for success in 2025.
Here are some questions to ask yourself as you prepare for the new year:
What are your big financial goals for 2025? Do you want to save more, invest more, or pay off a significant chunk of debt?
Is there a major life event coming up, like a wedding, a new baby, or buying a home? If so, how can you plan your finances accordingly?
What’s your plan for improving your financial education? Maybe you want to read more books, listen to more podcasts (like ours!), or even meet with a financial advisor.
Think of this as your roadmap for the future. Setting clear financial goals now will make it easier to create a plan of action when January rolls around.
Bonus Tip
It’s actually something that often gets overlooked and that’s to review your insurance coverage. As life changes throughout the year, so do your insurance needs. This is a great time to make sure you’re still adequately covered. This can be health insurance, auto insurance, home insurance, or even life insurance.
Let’s run through those quickly.
Health insurance: Often, open enrollment happens around this time of year, so double-check your health plan to see if it still meets your needs. Are there changes in your medical needs or those of your family that require a different plan or more comprehensive coverage? Take a look and make any necessary changes.
Home and auto insurance: Look for any discounts you might qualify for and make sure your coverage matches the current value of your property or your car. You may have made some renovations or bought a new vehicle this year, so make sure your policies are up to date.
Life insurance: If your family situation has changed—such as getting married, having children, or buying a home—then now’s the time to take a look at your life insurance policy to ensure your loved ones are protected.
By making sure you’re properly insured, you’re not only protecting your financial future but also giving yourself peace of mind heading into the new year. It’s just one more way to wrap up 2024 feeling secure and prepared!
That’s a wrap on our end-of-year financial checklist. We hope we have given you practical tips and tools to finish the year strong and head into 2025 feeling confident about your finances. Remember, you don’t have to tackle everything at once—take it step by step.
As always, we are here to help. Whether you have questions about your accounts, need help with a loan or maybe need a hand setting up a new budget for 2025, we’re just a call or a visit away.