Tips for an End of the Year Financial Review

Schedule an annual financial wellness checkup with your partner or yourself! I don’t know about you but this year was EXPENSIVE (everything from lumber to milk!) It’s time to make a financial plan for the new year but before you do that you need to know where you are at currently and what your monthly expenses & income is. Start your end of the year financial review asap.End of the Year Financial Review with Commit30

  • Review your budget and overall spending. Make a budget for the new year if you don’t already have one, or update your budget based on your current situation and inflation.
  • Review and/or calculate your net worth. Assets – debts = net worth. 
  • Review insurance policies – shop around for better, less expensive coverage
  • Review your annual subscriptions and see where you can trim back.
  • Check your credit score and make sure your credit history is intact.
  • Check home values and assets and make sure you have sufficient insurance coverage.
  • Create an annual giving plan.
  • Check year end financial & investments statements. 
  • Review any tax changes.
  • Evaluate and plan for any upcoming expenses or changes in income. If you don’t already have a 6 month emergency fund, put together a plan to have one asap. Aim to build an emergency fund of $1000 to start and then at least 3-6x your monthly budget, including fixed housing expenses.
  • Commit to tracking your spending (track what’s going in and what’s going out). There are lots of apps out there but I like to use a good old fashioned paper and pen (our Money Journal) or a google doc.
  • Commit to mindful spending – ask yourself do you need it? Is it something I will use often? Is it necessary? Try to aim to control impulse purchases. Sit on it for a few days.
  • Contribute as much as you can each to your retirement savings – the power of compound interest is real! And the younger you start the better.
  • Make sure you have life insurance and a will. 
  • Make a plan to become debt-free – add up all of your current debts, cut costs and set an estimated debt payoff date.
  • Educate yourself about money – read books (see below for some of our favorites), listen to money podcasts (see below for my favorites) and follow people on social media that are a part of the #debtfreecommunity for inspiration.
  • Stay healthy to avoid extra health care costs – drink water, move your body, eat healthy, take your vitamins and wash your hands!! 
  • Consider ordering your groceries online (this is a great way to stay on budget, avoid impulse purchases, plan your meals and use digital coupons).
  • Reduce your utility spending by turning down the heat, using less water and using energy-efficient light bulbs.
  • I aim to repair stuff first before sending it to the landfill. Try to reduce your plastic purchases.
  • Have a monthly or weekly budget meeting with your family. Instead of saying to our kids we can’t afford it – we say that’s not the best use of our hard-earned dollars right now. 
  • I support my friends businesses when gift-giving. And young entrepreneurs – sign me up for two. I prioritize small business & local business spending in our budget. Jeff Bezos doesn’t need any more $ or any more yachts. 
  • Consider ways to increase your income (try to negotiate a raise, start a side hustle, sell some items you don’t need anymore).
  • Use your local library – borrow books, movies, games and they often offer free educational programs
  • Write out a list of your top 3 money goals for the new year.

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