The end of the year is the perfect time to review your budget, spending, investments, or any recent financial decisions. Doing this annually ensures you’re on track to meet goals and to determine if adjustments are needed. From checking your spending to reviewing your credit report, it’s important to ensure you’ve covered every base when carrying out an annual personal finance review.

  1. Review Your Credit Report – It is important to stay on top of your credit report to ensure accuracy. Unknown credit inquiries or new accounts can be the first sign of identity theft. Members are entitled to a free credit report annually at annualcreditreport.com. If you find any errors, correct them immediately by contacting the initiating institution.
  2. Review Your Budget – Checking your budget regularly is critical for financial success.Analyze where your money went – did you spend more than you made? Was there a savings goal, and was it met? Understanding the inflow and outflow of cash helps you review financial lessons you may have learned throughout the year. Be honest with yourself so you can improve for next year.
  3. Cut out Unnecessary Expenses – Review your budget versus spending, and remove anything you may not necessarily need. Cutting out excessive (and unneeded) expenditures ensures you have more spending cash for the new year and allows you to save for bigger, necessary expenses.
  4. Check Recurring Expenses – Review your everyday lifestyle expenses. This is especially critical during high-inflation periods. Gradual cost increases can make a dent on your monthly spending without you noticing. Reviewing these expenses against your budget allows you to build a buffer for unexpected expenditures.
  5. Review Your Liquid Savings – Do you have enough liquid cash for an emergency? We recommend members have at least 3 months’ income saved for an emergency. After assessing your budget and expenses, build a plan to increase your savings to your desired emergency balance.
  6. Review Charitable Contributions – Review what contributions you have made throughout the year. This gives you the opportunity to make adjustments on your annual giving, which directly impacts your upcoming tax bill. Charitable contributions are not only great for one’s community, but also provide some great tax benefits for high-income earners.
  7. Review Options for Retirement Plan Contributions – Take advantage of the IRS’ allowable contributions to your retirement savings plans. Have you “maxed out” your allowable contributions? Have you contributed enough to get your company match? Saving early and often is critical for long-term success in retirement. These include 401(k), IRAs, or even HSAs (Health Savings Accounts).
  8. Review Your Estate Plan (if applicable) – You may have had significant life changes throughout the year—a new baby, a marriage or a move to a new state. This means your estate plan needs to change too. Review any assets you may have and create or update any documents including your will or trust. Also, check your beneficiaries on any assets, including bank accounts. Also, if you don’t already have a power of attorney in place, be sure to address that too. This ensures your finances are protected in case of an emergency.