‘Tis the season to be financially savvy! As the year draws to a close, it’s easy to get caught up in the hustle and bustle of the holiday season. However, amidst the merriment and eggnog, taking a little time to tackle some personal finance housekeeping can set you up for a smooth financial ride into the next year and beyond. So, grab your calendar and set aside 1-2 hours to breeze through this year-end personal finance checklist. Your future self will thank you as you step into 2025 with a sense of financial peace!
- Spend “Use it or Lose it” FSA Funds
Don’t let your hard-earned FSA funds go to waste. Check with your employer to see if you have any unspent funds that need to be used before the year ends. Treat yourself to qualified medical expenses like OTC medications, feminine hygiene products, telehealth services, and more to make the most of your FSA contributions. -
Make your Deductible Charitable Contribution
‘Tis the season of giving! For those who itemize deductions, now is the perfect time to make charitable contributions and hold onto those donation receipts. Not only will you be helping those in need, but you may also be eligible for tax deductions. -
Adjust Employer-Sponsored Retirement Plan Contributions for 2025
Take a moment to review your retirement contributions for the year. Consider increasing your contributions if possible to take advantage of tax benefits and prepare for a secure financial future. -
Make 529 Plan Contributions
For those with 529 plans, ensure you make your annual contributions by December 31 to maximize tax advantages. Some states offer deductions for 529 contributions, so don’t miss out! -
Use Up & Refresh Expiring Credit Card & Travel Rewards Points and Benefits
Don’t let your hard-earned rewards go to waste. Keep track of expiration dates and make the most of your credit card and travel rewards before they expire. -
Review your Tax Withholding Situation
Take a look at your income and review your tax withholding to ensure you’re set up correctly for the next year. Use the IRS W-4 form to make any necessary changes before the year ends. -
Re-shop Your Insurance Policies
With insurance rates changing annually, it’s a good time to review your policies and shop around for the best rates. Don’t be afraid to switch insurers to get the best deal for your needs. -
Review your Spending Over the Last 12 Months and Trim the Fat
Take a deep dive into your spending habits over the past year. Identify areas where you can cut back and trim unnecessary expenses to keep your budget in check. -
Set Financial Goals for Next Year
As the year comes to a close, set some financial goals for the next year. Whether it’s saving for a vacation, paying off debt, or investing in your future, having clear financial objectives can help you stay on track. -
Make ACA Marketplace Enrollment Changes & Sign Up for Next Year
For those enrolled in ACA marketplace plans, review your options and make any necessary changes before the open enrollment deadline. Explore new plans to ensure you’re getting the best coverage for your needs.
As you wrap up the year, don’t forget to rebalance investments, consider tax loss harvesting, negotiate better interest rates on debt, top off HSA contributions, and review your credit reports for errors. Take control of your finances and start the next year on a strong financial footing. Happy financial planning!
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