The leaves are falling, holiday music is playing at local stores and weather forecasters are starting to mention snow.
It’s the perfect time of year to cozy up on the couch with a warm blanket and your computer — and take a few minutes to review this year-end checklist to ensure your finances are in order.
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. Check up on your retirement plan
If you have a 401(k) or another retirement program through work, check to see that you are taking full advantage of your employer’s matching contributions. If you haven’t contributed as much as you could, you have until the end of the year to catch up, to a limit of $22,500. If you have an IRA, you have until April 15, 2024 to make the maximum contribution of $6,500, with an additional $1,000 if you are 50 years or older.
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 are not happy with your progress or if your debt has deepened, consider taking bigger steps toward paying it down in 2024. (You can start out by resolving to make an appointment with a certified financial counselor at CommonWealth One, who can help you come up with a new budget and debt solutions that will work for you!)
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 request a free copy of your credit report from all three credit reporting agencies once a year. When you review your report, check for fraudulent charges and any other signs of possible identity theft. If you find any issues, you can then make the necessary phone calls to get any errors corrected.
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. This isn’t something you should do alone! Make an appointment with our CommonWealth One Financial Network Financial Consultant, Timothy States, to talk about your goals, needs and how to invest to cover both.
6. Review your beneficiaries
Has your family situation changed during the past year? If it has, be sure to update the beneficiaries on your financial accounts and life insurance policies.
7. Review your tax withholdings
Think back to last spring! Did you owe taxes, or did you get an unexpected refund? Review your W-4 or your quarterly tax payments to see if the amount you are paying in taxes needs to be adjusted. If you’re not a numbers person, ask your accountant or bookkeeper for help.
We know you’re busy and there’s a lot to do before the end of the year at work and at home —but a quick year-end check up can help you feel better about your finances and help you enter 2024 with a clear financial picture of your goals.
If you need help with any of these steps, don’t hesitate to contact us! We’re here for you, for life!
