We’re heading toward the end of the year, and while you may have spent this weekend spending a lot of money on holiday presents, the days after the holidays will be a good time to get your financial house back in order!
Take a moment to go through this year-end 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? You may have gotten off course this month, but look at the general arc of the year: 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. If you haven’t contributed as much as you can, you have until the end of the year to catch up, so check in with your human resources department. If you have an IRA, you have until April 15 to scrape together the maximum contribution.
3. Check your progress on paying down debt
Review your outstanding debts from a 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 bigger steps toward paying it down in 2025. (CommonWealth One will be hosting a variety of webinars and giving you resources in the new year to do this!)
4. Get a free copy of your annual credit report
The end of the year is a great time for an annual credit checkup. You can only request a free copy of your credit report from all three credit reporting agencies once a year. Get your annual credit report here, and look for fraudulent charges and other signs of possible identity theft.
5. Review your investments and asset allocation
You may need to make some adjustments to your mix of stocks, bonds, cash and other investments to better reflect your personal 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 advice on how much your withholding should be. (Do this especially if you owed a large amount in taxes back in April, or if you got a big refund!)
Remember, CommonWealth One is here for you, for life. If you have questions about any of these steps, we’ll be ready and willing to help. Just stop by a branch or give us a call to set up an appointment with one of our certified financial counselors.
We hope you have a safe and happy holiday!
