As the year is ending, it’s tempting to ignore the “financial” stuff and instead focus on the holidays. But the year-end is a great time to do a financial review and check-in to make sure your financial house is in order. This year-end financial checklist will help you save money, protect your family in the future and set you up for success to hit your financial goals.
Year-End Financial Check-In
The end of the year is a great time to check in on the state of your family’s finances. Block off 60 minutes to sit down with your spouse or partner (if applicable) and consider the following questions:
- Did we stay on budget this year? If not, where did we go over or under and why?
- Did we hit our savings goals for retirement, emergency savings and college funds?
- Where can we reduce expenses or increase income?
- What areas of our financial life feel stressful? Which ones feel good?
Use your answers to these questions to create a budget and spending plan for the new year. If there are areas for improvement, note these and make a specific plan to do things differently. For example, if you wanted to save $200 each month and only saved $100, can you sign up for automatic transfers from your paychecks to your savings account?
Make a Debt Payoff Plan
Debt can feel very scary and that’s why many people ignore dealing with it. But the end of the year is a good time to assess your current situation and make a plan moving forward. Start by listing out all of the debt you currently have, including the interest rate and deadlines if applicable. This includes your mortgage, autos, credit cards and student loans.
Then decide what you can afford to pay towards your debt every month. You can adjust this number to meet your debt paydown goals. Consider refinancing or consolidating high-interest debt, to reduce the amount of interest you will pay over time. Set a plan to pay each debt item down by a certain date, and make it a priority before spending money on non-essentials.
You may be able to save money in the long run by re-financing to a lower interest rate auto loan at FNB Community Bank! Feel free to apply online to see if you could save.
Make a Budget for the New Year
A realistic budget is the best way to ensure your family meets its financial goals. Start by looking at your spending for this year, and get honest about where you can cut back. Prioritize items such as retirement and emergency savings and debt paydown. But also don’t make your budget so restrictive that your family won’t stick to it. And don’t forget to build in a buffer for unexpected expenses!
