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Your Financial Checklist for the End of the Year
December 6, 2024
by Partner Colorado Credit Union
As the year winds down, it’s the perfect time to take stock of your financial situation and plan for the year ahead. An end-of-year financial checklist ensures you stay on top of your finances, maximize savings, and position yourself for a strong start in the new year. Here’s a complete guide to help you wrap up the year financially secure and get ready for next year.
The end of the year is a great time to review your spending habits and update your budget. Ask yourself these questions.
• Did you stick to your budget this year?
• Are there spending categories where you consistently overspend?
• Can you distribute your funds to better meet your financial goals?
Analyzing your expenses can highlight patterns and reveal opportunities for saving or cutting unnecessary costs.
Monitoring your credit is crucial to your financial health. You can get free credit reports weekly from each of the three major bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. Verify the accuracy of the information and dispute any errors, as they can impact your credit score.
If you have a 401(k), IRA, or other retirement accounts, confirm you’re contributing as much as possible. For 2024, the 401(k)-contribution limit is $23,000 (or $30,500 if you’re 50 or older), and for IRAs, the limit is $7,000 (or $8,000 if you’re 50 or older).
Contributing the maximum allowed or as much as you can afford not only grows your retirement savings, but it also may provide tax benefits.*
Now is the time to organize for tax season. Here are some things you can do to get ready.
• Gather receipts for deductible expenses like medical costs, charitable donations, or business expenses.
• Estimate your tax liability and make adjustments to withholdings or set aside funds for payments.
• Consider contributing to a Health Savings Account (HSA) if eligible, as this type of account can offer tax advantages.*
Review your savings accounts to ensure they align with your goals. Consider automating contributions to reach these goals faster.
• Emergency Fund: Aim for three to six months’ worth of living expenses.
• Short-term Goals: Are you saving for a vacation or education expenses?
• Long-term Goals: Ensure progress towards buying a home or retiring.
Evaluate your life, health, auto, and homeowner’s insurance policies. Make sure your coverage is adequate and aligns with your current needs. Shopping around for quotes may help you find savings on premiums.
Finally, outline your financial goals for the upcoming year. Whether it’s paying off debt, increasing savings, or starting a new investment strategy, setting clear and actionable goals will keep you focused and motivated.
Our free online personal financial management tool, My Financial Partner, can help you create budgets, track your spending and set financial goals.
Taking the time to complete a year-end financial checklist can make a significant difference in your overall financial wellness. By staying organized and proactive, you’ll end the year on a positive note and set yourself up for a prosperous new year.
*Consult a tax professional for more details.
Review Your Budget
The end of the year is a great time to review your spending habits and update your budget. Ask yourself these questions.• Did you stick to your budget this year?
• Are there spending categories where you consistently overspend?
• Can you distribute your funds to better meet your financial goals?
Analyzing your expenses can highlight patterns and reveal opportunities for saving or cutting unnecessary costs.
Check Your Credit Report
Monitoring your credit is crucial to your financial health. You can get free credit reports weekly from each of the three major bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. Verify the accuracy of the information and dispute any errors, as they can impact your credit score.
Maximize Retirement Contributions
If you have a 401(k), IRA, or other retirement accounts, confirm you’re contributing as much as possible. For 2024, the 401(k)-contribution limit is $23,000 (or $30,500 if you’re 50 or older), and for IRAs, the limit is $7,000 (or $8,000 if you’re 50 or older).Contributing the maximum allowed or as much as you can afford not only grows your retirement savings, but it also may provide tax benefits.*
Plan for Taxes
Now is the time to organize for tax season. Here are some things you can do to get ready.• Gather receipts for deductible expenses like medical costs, charitable donations, or business expenses.
• Estimate your tax liability and make adjustments to withholdings or set aside funds for payments.
• Consider contributing to a Health Savings Account (HSA) if eligible, as this type of account can offer tax advantages.*
Evaluate Your Savings Goals
Review your savings accounts to ensure they align with your goals. Consider automating contributions to reach these goals faster.• Emergency Fund: Aim for three to six months’ worth of living expenses.
• Short-term Goals: Are you saving for a vacation or education expenses?
• Long-term Goals: Ensure progress towards buying a home or retiring.
Review Insurance Policies
Evaluate your life, health, auto, and homeowner’s insurance policies. Make sure your coverage is adequate and aligns with your current needs. Shopping around for quotes may help you find savings on premiums.
Set Financial Goals for the New Year
Finally, outline your financial goals for the upcoming year. Whether it’s paying off debt, increasing savings, or starting a new investment strategy, setting clear and actionable goals will keep you focused and motivated.Our free online personal financial management tool, My Financial Partner, can help you create budgets, track your spending and set financial goals.
Taking the time to complete a year-end financial checklist can make a significant difference in your overall financial wellness. By staying organized and proactive, you’ll end the year on a positive note and set yourself up for a prosperous new year.
*Consult a tax professional for more details.