Year-End Financial Checklist

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Before the year comes to a close, there are some things you need to do before you kiss 2023 goodbye.  Doing some year-end planning can prevent you from wasting money…and help set you up for success next year.  Here are some year-end financial tasks to add to your to-do list.

Review your budget

This year, some people have lost jobs, gotten higher paying positions or permanently work remotely now.  As a result, your spending habits may have changed.  Look at where your money is going and see what adjustments need to be made to your budget.  If you never had a budget, now is a good time to create one.  This will make it easier to save money and achieve your financial goals.

Set your goals for next year

There’s no need to wait until January to set your goals for the new year.  Whether you want to start a small business, build your emergency fund or buy your first house, you’re going to need a good plan.  Experts suggest setting SMART goals.  That means your goals must be Specific, Measurable, Attainable, Relevant and Time-based.  In other words, be specific about what you want to achieve, have a way to track your progress, be realistic about what you can accomplish, make sure the goal is worthwhile and set a deadline for making it happen.

Check your FSA balance

If you have a flexible spending account (FSA), check your balance before the year ends.  You may lose any funds that aren’t spent by December 31^st.  Some employers give you a 2 ½ month grace period or allow you to carry over up to $610 of your unspent FSA.  But they aren’t required to be so generous so double check the rules. If you aren’t able to rollover the funds, make sure you spend the money before the year is over.

Review your credit report

Monitoring your credit is an important part of managing your finances.  You want to make sure that you’re in good standing so that when you apply for a loan, you’re offered the best interest rates. The lower the interest rates, the more money you’ll save. Reviewing your credit report gives you a glimpse of what lenders see, prevents identity theft and help you identify and dispute mistakes.  If it’s been a while since you checked yours, do it now.  You can now get free weekly online credit reports from Equifax, TransUnion and Experian at AnnualCreditReport.com.

Update the beneficiaries on your accounts

Death can happen anytime and it’s usually when you least expect it.  If your family dynamics have recently changed, update the beneficiaries on your accounts so your assets go to the right people.  Do this for your bank accounts, retirement accounts, life insurance policies and annuities.

Get health coverage for 2024

No health insurance?  Now is the time to get coverage for 2024. The Health Insurance Marketplace open enrollment period ends January 15, 2024.  However, you must enroll by December 15, 2023 for coverage starting January 1^st. Those who enroll between December 16th and January 15th will be covered beginning February 1st. To apply for Marketplace coverage, visit HealthCare.gov or 1-800-318-2596.

Devise a plan to pay off your debt

The average American has $6,365 in credit card debt.  If you are a part of this group, it’s time to create a plan to turn your financial life around. The first step is to stop borrowing. No more swiping your credit card or taking out new loans. Next, you want to track your spending and look for ways to trim your expenses. Once you have a clear idea of where your money is going, you can decide how you’ll pay off your debt. Some people use the snowball method which focuses on the smallest debts firsts, while others prefer avalanche method which focuses on the highest interest rate. Do what works for you. Finally, if you have a high-interest card with a manageable balance, see if you can transfer your debt to a card with a 0% introductory rate.  This will help you pay off your balance faster.  Just be sure to read the fine print because there’s typically a balance transfer fee attached, and the rate will go up once the introductory period is over.

Get organized for the upcoming tax season

Missing receipts can cost you valuable tax breaks.  Use our tax prep checklist to start getting organized for the upcoming tax season now.  Having everything you need readily available will save you time, stress and make it easier to claim the appropriate tax credits and deductions. 

File your taxes fast, ez and stress-free.