Year-End Financial Review For Individuals

Our Impact Team
Dec 10, 2024
3 min read

With the year wrapping up, now’s a great time to take a closer look at your finances. A year-end review helps you check where you stand, set goals that feel doable for next year, and make smart choices for your future. From savings to investments, here's how you can take a meaningful look at your financial health and set yourself up for success.

Step 1: Take a Look at Your Spending

Start by checking out your budget and spending over the past year. Were there areas where you went a little overboard? Think about where you can cut back to free up money for more important goals, like paying off debt or boosting your savings for next year.

Helpful Tip: Try budgeting apps — they make it super easy to track where your money’s going and spot places to save!

Step 2: Assess Your Savings and Emergency Fund

How’s your emergency fund looking? Ideally, it should cover about 3-6 months of living expenses—just in case life throws a curveball. If it’s not quite there yet, no worries! Make it a goal to build it up this year, little by little.

Check Ramseysolutions to get an idea of how much you might need.

Step 3: Evaluate Your Investments

Take a moment to check how your investments are doing. Are they still in line with your risk comfort level and financial goals? The end of the year is a great time to rebalance your portfolio if things have shifted and you need to tweak your strategy.

Helpful Tip: If you're feeling unsure, chat with a financial advisor to get some guidance. Or, if you like the hands-off approach, tools like Betterment or Wealthfront can help automate the process and keep your portfolio on track.

Step 4: Review Your Debt

Make a list of all your debts – credit card balances, loans, mortgages, etc. Prioritize paying off high-interest debts and explore refinancing options to reduce interest rates on larger debts like mortgages.

Tool: Use apps like Unbury.Me to create a debt repayment plan that shows you the quickest or cheapest strategy for becoming debt-free.

Step 5: Plan for Retirement

No matter where you are in your retirement journey—whether it feels like a lifetime away or just around the corner—it’s worth taking a moment to check in on your plans. Are you putting enough into your 401(k), IRA, or other retirement accounts? If it looks like you might be falling behind, it could be a good time to bump up those contributions.

Check out Investopedia’s Retirement Planning to learn how much you need to retire comfortably.

Step 6: Understand Your Tax Situation

Identify potential tax deductions and credits you can claim, and make any last-minute contributions to retirement accounts or educational savings plans that offer tax advantages. Preparing now can simplify your tax filings and potentially reduce what you owe.

Check out our blog on 2024 Tax Planning Strategies for Individuals for helpful tips.

Step 7: Set Goals for the New Year

Based on your review, set clear, actionable goals for the next year. These could include increasing your emergency fund, starting an investment account, or paying down a specific debt.

Tool: Use goal-setting apps like GoalsOnTrack or Trello to keep your financial goals organized and trackable.

Step 8: Schedule Regular Check-Ins

Mark your calendar for regular financial reviews throughout the year. This will help you stay on top of your financial situation and adjust as needed to meet your goals.

Final Thoughts: A thorough year-end financial review is crucial for identifying where you stand financially and setting the stage for future success. By taking the time to review and plan now, you're putting yourself in a better position to achieve your financial goals and improve your overall financial health in the coming year.

Need help with your year-end financial review? Contact our Impact Team to get personalized assistance tailored to your specific needs.

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