REFLECT, REVISE, AND RISE: Your Year-End Financial Wrap-Up
As the year ends, it’s the perfect time to reflect on your financial journey. Looking back on your past performance not only helps you understand where you’re currently standing, but also aides in guiding your plan for the future.
Review and Analyze Your Finances:
>> Based on your reflections, set realistic and achievable financial goals for the new year. Ensure your goals are SMART: specific, measurable, achievable, relevant, and time-bound.
>> Examine the goals you set at the beginning of the year. How many did you accomplish? Which ones fell short? Taking a look at your unmet goals, identify what setbacks may have caused this, and take it as an opportunity to understand what parts of your plan need to be changed for the upcoming year.
>> Compare your actual income and expenses against your budget. Being aware of your spending patterns and trends can help you make more accurate financial plans moving forward.
>> Check the status of your emergency fund, to ensure that it’s adequate for any potential, unforeseen circumstances. This also involves the review of your retirement accounts and other savings goals to see if you are on track.
Assess Debt and Investments:
>> Create a list of your outstanding debts, along with their interest rates. After evaluating your progress, consider strategies for more effective debt reduction.
>> Analyze the performance of your investment portfolio and plan any necessary adjustments for the upcoming year.
Optimize Tax Strategies and Financial Habits:
>> Identify potential tax-saving opportunities before the year ends. Consider contributions to tax-advantaged accounts and gather all necessary documents for tax preparation.
>> Reflect on your spending and saving habits over the past year. Identify any habits that helped or hindered your financial progress, and plan to reinforce positive habits and change negative ones.
Set New Financial Goals and Create an Action Plan:
>> Develop a step-by-step action plan to achieve your new financial goals. Set monthly or quarterly milestones to track your progress, and adjust your budget to align with your action plan.
Seek Professional Advice:
>> Consider consulting with a financial advisor or planner for personalized advice. A professional can help you to optimize your financial strategy and keep you informed on the best practices.
>> Our financial fitness partner BALANCE is a great resource to support you on your financial wellness journey. Call at 1-888-456-2227 or visit their website today!
Resources:
>> Check out these great tools and resources that can support you in your personal finance review, as well as in creating your action plan for the upcoming year!
>> BALANCE
Reflecting on your financial progress and planning ahead is crucial for achieving long-term financial success. By taking proactive steps and setting clear goals, you can ensure a prosperous and financially secure new year.