Your Year-End Financial Checklist: Close 2024 Strong and Set Up for Success in 2025
1. Review Your Budget and Spending
Assess how well you stuck to your budget this year.
Identify areas where you overspent or underspent.
Use this insight to adjust your budget for 2025.
2. Maximize Retirement Contributions
Contribute the maximum allowed to your 401(k) or IRA.
If you’re 50 or older, don’t forget about catch-up contributions.
3. Optimize Your Tax Strategy
Gather receipts for deductible expenses, such as charitable donations.
Consider tax-loss harvesting to offset capital gains.
Review withholding amounts to avoid surprises at tax time.
4. Check Your Emergency Fund
Ensure you have 3–6 months’ worth of living expenses saved.
If you dipped into your emergency fund, create a plan to replenish it.
5. Review Your Investments
Rebalance your portfolio to maintain your target asset allocation.
Ensure your investments align with your risk tolerance and goals.
6. Use Up Flexible Spending Account (FSA) Funds
Check your FSA balance—many plans have a "use it or lose it" policy.
Spend remaining funds on eligible expenses like prescriptions or medical supplies.
7. Plan for Charitable Giving
Donate to charities before December 31 to claim deductions.
Explore options like donor-advised funds for long-term charitable goals.
8. Evaluate Insurance Coverage
Review your health, life, and property insurance to ensure adequate coverage.
Consider making adjustments based on life changes or increased needs.
9. Check Your Credit Report
Pull your free annual credit report from all three bureaus at AnnualCreditReport.com.
Dispute any errors and monitor for signs of identity theft.
10. Set Financial Goals for 2025
Reflect on your progress this year.
Write down clear, actionable goals for the coming year, such as saving for a major purchase, reducing debt, or increasing retirement contributions.