Another year has nearly gone by! As the year draws to a close, take a moment to go through this financial checklist to ensure your finances are in order before the start of the new year.
1. Review your budget
Is your current monthly budget working for you? Are you stretching some spending categories or finishing each month in the red? Take some time to review your budget and make any necessary changes.
2. Top off your retirement plan
If you have a 401(k), check to see that you are taking full advantage of your employer’s matching contributions. And, if you haven’t contributed much, you have until the end of the year to catch up. Also, you have until April 15 to scrape together the maximum contribution if you have an IRA.
3. Check your progress on paying down debt
Review your outstanding debts from one year ago and hold up the amounts against what you now owe. Have you shed any debt from one year ago, or is your debt growing? If you’ve made no progress or your debt has deepened, consider taking more significant steps toward paying it down in the new year.
4. Check on your credit score
The end of the year is an excellent time for a credit checkup. You can use our free tool, SavvyMoney, to check your credit with no harm to your score, or simply check it through one of the three main credit bureaus - Experian, TransUnion, and Equifax. Consider making a plan to boost your score in the new year.
5. Review your investments and asset allocation
You may need to adjust your mix of stocks, bonds, cash, and other investments to better reflect your financial goals and/or the current state of the economy and market.
6. Review your beneficiaries
Has your family situation changed during the past year? If it has, be sure to switch the beneficiaries on your accounts and life insurance policies to accommodate these changes.
7. Review your tax withholdings
Review your W-4 to see if the amount of tax withheld from each paycheck needs to be adjusted. If you’re not a numbers person, ask your accountant for help.
Now you know how to go through a year-end financial checklist. So, use this checklist to make sure your money matters are in order before the start of the new year.
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