12 Days of Year-End Financial Tasks

Wouldn’t it be great to start the new year on a path to financial wellness, knowing you have set yourself up for success with savings accounts, better interest rates, tax deductions, and more? We have created a checklist of some of the most pressing financial tasks that nearly everyone should consider before the end of the year.

1. Consider Tax Deductions

It’s tougher than it used to be to make tax deductions count (the standard deduction has become the go-to for most).

Deductions to Consider

But if you’re still itemizing, Alvin Carlos, CFA, CFP, a financial planner and managing partner with District Capital Management in Washington, D.C., recommends doing the following:

• Charitable Donations. Make the most of your charitable donations.
• Donor-Advised. Use a donor-advised fund to bunch donations and get a higher tax deduction.
• Medical Expenses. If this year’s medical expenses were higher than usual, see if you meet the threshold (7.5% of your adjusted gross income) for writing them off as well.

2. Rebalance Your Investments

With the stock market still near record highs, it’s time to check in on your investments. And if you are not in the habit of rebalancing your investments, now is the time. Why? Because when the markets race ahead, asset allocations — and the amount of risk you’re taking — get out of balance. Rebalancing means selling winners and plowing money back into categories that haven’t performed as well to bring your asset allocation back where you want it to be. That’s assurance that you have the appropriate mix of stocks and bonds for your age and needs. 

3. Make Sure You Get the Match

If you work for a company or agency that offers a 401(k) or similar retirement account, make sure you are contributing enough to get the full match. When you don’t, it’s like leaving money on the table every year. 

4. Check in on Your FSA

For those with Flexible Savings Accounts, check in to see how much money you have left.

• Use it or Lose it. Make sure to spend any remaining dollars so you don’t lose them.
• Ask About Your FSA Plan. Typically, you must use FSA funds within the plan year or risk losing the money, although some companies offer provisions to carry some of the money forward. Check with yours.
• Approved Spending. And if you’re looking for FSA-okay expenditures, try FSAstore.com.

5. Make Contributions

If you are eligible, consider contributing to a Roth IRA, says Carlos. It’s not due until tax day 2026, but if you start now, you can automate smaller contributions into the account so you’ve maxed out by the due date. 

6. Double Check Your Withholdings

Run a quick tax projection to make sure you have withheld enough money.

• End of Year Adjustments. Remember, a small adjustment in December can help you avoid a penalty, explains Carlos.
• Ask HR. If you are a W-2 employee, you can check in with your Human Resources (HR) department to figure this out. 

7. Calculate Health Insurance Premiums

Not all companies are transparent about health insurance premiums going up from year to year.

• Check at Open Enrollment. That’s why it’s important to review that data during open enrollment.
• Get Monthly Deduction Amounts. You can email your HR department and ask them to send you the monthly deduction amounts for the health insurance plan you selected.
• Check Other Expenses. While you are at it, review your deductibles and other out-of-pocket costs to better budget for the year ahead.

8. Check Your Credit Reports

If you don’t check in regularly on your credit reports, now is the time.

• Free Report. There’s no need to pay to see your credit reports. SavvyMoney users have access to their credit report through their online banking dashboard as often as they want to see it. 
• Review for Accuracy. Then, carefully review them to make sure there are no errors.
• Report Errors, Immediately. If you see something wrong, reach out to the credit bureau directly and let them know what the problem is. 

9. Know Your Credit Score

If you don’t keep track of the three-digit number that ranges from 300 to 850, there’s no time like now to pull off the Band-Aid and see your score.

Where to Get Your Score

While it’s not quite as easy to access as your free credit reports, there are several ways to get your credit scores:

• Credit Card Companies. Many credit card companies and other lenders provide you with free scores.
• Non-Profits. You can also get credit scores from nonprofit credit and housing counselors.
• Paid Service. Or, you can pay a credit service for your score, which may include credit monitoring.
• Online Banking. SavvyMoney customers have 24/7 access to their credit score, as well as credit monitoring and alerts.

10. Create or Update an Emergency Fund

If you haven’t been making regular deposits into a separate account for emergencies, now is the time.

Steps to Start an Emergency Fund

Need help getting started? We outline some steps for you to follow. 

• Separate Account. Open a new, separate savings account.
• Automate. Schedule a weekly or monthly withdrawal from your regular checking account into the new account.
• Set Your Goal. While the goal is to have three to six months’ worth of living expenses tucked away, you can first aim to save at least six weeks ‘ worth of earnings as you work your way up to a larger cash cushion. 

11. Find a Better Savings Account Interest Rate

When was the last time you checked on your savings account rate? In just a few minutes online, you can shop around for a better high-yield savings account to earn more than your current one. With the Fed lowering rates, banks are dropping their annual percentage yields (APYs) — which means now is the time to make sure you’re getting the best deal. And, opening a new account can take just a few minutes. Depending on your balance, you could earn hundreds or thousands more in the coming months. If you don’t want to leave your current financial institution, you can ask them to match the higher interest rate you found elsewhere.

12. Renegotiate Credit Card Terms or Other Debt

For the first time in a long time, we are finally seeing some movement in interest rates.

• Refinance. Don’t miss this opportunity to try to refinance any of your debts down to lower levels.
• Call Your Lenders. To do this, call your lender and ask them for a lower rate.
• Pay it Down. Then, focus on paying down your debts — especially the high-interest credit cards — so you can have a little more breathing room.  

With Reporting By Casandra Andrews