Year End Financial Checklist

The doors are closing on 2022 and it’s time to give your finances a full checkup. Use this checklist to make sure your funds are in order before the start of 2023.

Check your progress on paying down debt

Review your outstanding debts from one year ago and compare them to what you owe now. Have you shed any debt from one year ago, or is your debt growing? If you’ve made no progress, or your debt has deepened, consider taking bigger steps toward paying it down in 2023. A debt consolidation loan is a good first step toward tackling high-interest debt.

Revise your budget

Is your current monthly budget working for you? Are you stretching some spending categories or finishing each month in the red? Have you allocated more funds than necessary to a category? Take some time to review your budget and make any necessary changes.

Evaluate your employer benefits

  • 401(k) If you have a 401(k), check to see that you are taking full advantage of your employer’s matching contributions. You have until the end of the year to catch up, to a limit of $20,500.
  • Insurance The end of the year usually coincides with open enrollment for health insurance policies. This is your chance to select the employer benefits you want for the coming year. If you miss this window, you will be stuck with the benefits you chose last year or with no benefits at all.
  • FSA Does your employer offer a Flex Spending Account (FSA)? Money in an FSA typically must be spent in the year it is contributed or it is forfeited. If you have a large sum left at the end of the year, consider lowering your contribution amount for 2023.
  • W-4 Reviewing your W-4 annually is a good idea to see if the amount of tax being withheld from each paycheck needs to be changed. Changing up the numbers just a bit can make a significant difference in your tax bill at the end of the year. Or, if you usually get a large refund, adjusting the amount withheld can mean enjoying a larger paycheck throughout the year.

Adjust your investments and asset allocation

You may need to make some changes to your mix of stocks, bonds, cash, and other investments to better reflect the current state of the market. Has your family situation changed in the past year? If it has, be sure to update the beneficiaries on your accounts to accommodate these changes.

As 2022 draws to a close, take a moment to go through this year-end financial checklist to ensure your finances are in order before the start of the New Year.

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