Year-End Financial Review Checklist

The end of the year is the best time to review your financial picture. Here is a comprehensive checklist to close out the year and set up the next one.

Net Worth Update

Update all account balances and calculate your year-end net worth. Compare to last year. How much did you grow? Did you hit your target?

Note any significant changes: new debts, paid off loans, investment gains or losses, major purchases.

Budget Review

Compare your actual spending to your budget for the year. Which categories came in under? Which went over? Were any surprises actually predictable patterns you should budget for next year?

Calculate your actual savings rate for the year. Income minus expenses divided by income.

Goal Assessment

Review each financial goal you set. Did you hit them? If not, why? Were the goals unrealistic, or did life intervene?

Set specific goals for next year. Make them measurable: save $X, pay off $Y debt, increase net worth by Z%.

Investment Review

Check your asset allocation. Did market movements push you away from your target? Rebalance if needed.

Review investment fees. Are you paying more than necessary? Consider lower-cost alternatives.

Maximize tax-advantaged contributions. Did you max your 401k, IRA, HSA? If not, can you increase contributions next year?

Tax Planning

Gather documents for tax filing: W-2s, 1099s, deduction receipts, charitable giving records.

Consider tax-loss harvesting before year end if you have investment losses to realize.

Review estimated tax payments if self-employed. Do you need to adjust?

Insurance Review

Review all insurance policies: health, auto, home, life, umbrella. Are coverage levels still appropriate? Are you paying for coverage you no longer need?

Shop for better rates if you have not recently. Loyalty rarely pays in insurance.

Beneficiary Check

Verify beneficiaries on retirement accounts, life insurance, and bank accounts. Are they current? Did major life events (marriage, divorce, birth, death) require updates?

Subscription Audit

List every recurring subscription. Do you use each one? Cancel anything forgotten or rarely used.

Check for price increases you did not notice. Many subscriptions raise prices quietly.

Credit Review

Pull your free annual credit report from each bureau. Check for errors and unauthorized accounts.

Review your credit utilization. High balances relative to limits hurt your score.

Emergency Fund Check

Is your emergency fund still adequate? Job changes, new expenses, or inflation may require adjustment.

Standard guidance: 3 to 6 months of expenses. More if income is variable or job market is uncertain.