It’s easy to overlook important items during the holiday rush. A step-by-step approach helps you finish the year strong.
As the holidays approach, calendars fill up quickly — school events, family gatherings, last-minute shopping. Amid the excitement, important financial items can easily get lost in the shuffle.
But taking just a little time before December 31 may allow you to feel more prepared going into the new year. Here are 12 simple planning steps to help you wrap up the year with confidence and clarity.
1. Review Your Cash Flow
Before the year ends, take a quick look at where your money went. Not to be critical — just to understand your spending patterns.
Look over your bank or credit card statements for recurring expenses you no longer use. Canceling unused subscriptions, adjusting automatic payments, or redirecting a few small expenses can make a real difference heading into next year.
A clear picture of your cash flow can help you start January on steady footing.
2. Check Charitable Giving Plans
If you plan to give, make sure your donations are processed before December 31 so they count toward this tax year.
Some people may also want to consider donating appreciated stock or using a donor-advised fund — both can provide flexibility and potential tax advantages when done correctly. If you’re unsure which method makes sense, check with your tax professional.
Organized giving ensures your generosity has the greatest possible impact — both for the causes you care about and your financial plan.
3. Spend Remaining FSA Dollars
If you have a Flexible Spending Account (FSA), remember that most are “use it or lose it.” Check your balance and use those funds for eligible expenses such as eyeglasses, dental visits, or prescriptions before year-end.
Don’t let hard-earned dollars go to waste — a quick check can save you money you’ve already set aside.
4. Max Out Retirement Contributions
If you can, add to your 401(k), IRA, or other retirement accounts before December 31. Even small increases — one or two percent — can make a long-term difference.
These contributions may also reduce your taxable income for the year, depending on your situation and account type.
Paying yourself first builds future security while potentially lowering your current tax bill.
5. Check Required Minimum Distributions (RMDs)
If you’re age 73 or older, or if you inherited an IRA, make sure your required minimum distributions have been taken.
Missed RMDs can result in unnecessary penalties. Even if your custodian automates withdrawals, it’s worth verifying that everything processed correctly — especially if you have accounts at different institutions.
Avoid penalties and stay in good standing with the IRS.
6. Review Capital Gains and Losses
If you sold investments this year, take a look at realized gains and losses. In some cases, it may make sense to offset gains with losses (known as tax-loss harvesting), but it’s important to coordinate that with your tax professional.
Managing your gains and losses intentionally may help make your investment plan more tax-efficient.
7. Update Beneficiary Designations
Life changes — marriages, births, divorces, new family members — but beneficiary forms don’t update automatically.
Review designations on your 401(k), IRA, life insurance, and annuity accounts to ensure they reflect your current wishes.
A few minutes today can save your loved ones confusion later on.
8. Review Your Insurance Coverage
When was the last time you reviewed your insurance policies? Needs evolve — especially after big life events, home improvements, or new business investments.
Check your health, home, auto, and life insurance to make sure coverage still fits your situation. For small business owners, don’t forget to review liability and property coverage as well.
Protecting what you’ve built starts with knowing you’re properly covered.
9. Review Business Expenses and Deductions
For business owners, this is a great time to gather receipts and categorize expenses. Review major purchases and consider whether additional deductions — such as equipment, rent, or retirement contributions — might apply before year-end.
As always, work with your accountant to confirm what makes sense for your specific business.
Proactive planning now may help you feel more prepared for tax season later.
10. Revisit Your Emergency Fund
If you dipped into savings this year, plan to rebuild your emergency cushion. Aim for enough to cover several months of essential expenses.
An emergency fund brings flexibility when unexpected expenses arise.
11. Set Preliminary Goals for the New Year
You don’t need to have full resolutions yet — just a few priorities. Maybe it’s paying off debt, saving for a trip, or opening a college account for a grandchild.
Write them down. A few clear goals help guide decisions once January begins.
A little direction now potentially sets you up for more achievable goals in the future.
12. Schedule a Review
Finally, take time to meet with your financial advisor or accountant before year-end. A quick review may uncover opportunities, prevent oversights, and help align your plan with your goals for the coming year.
You’ll start January with clarity, direction, and a plan.
Finish the Year Strong
Financial planning doesn’t have to be overwhelming — especially when you take it step by step. Even tackling a few of these items can help you wrap up the year with more confidence.
If you’d like to schedule a review before the calendar turns, our team is here to help you finish strong.
Disclosure: This content was generated utilizing the help of AI research and is intended for informational purposes only. Please consult a qualified professional for personalized advice.