Many people begin thinking about next year’s finances in December. It’s a good idea to get a head start thinking about then, honestly. Here are some fantastic end of the year financial tasks that will make next year run smoother:
I’ll admit it. I find that my internal sense of security is very driven by my money situation. I’m not proud of it and I’m not saying it’s right… but if I’m worried about money then my mental health suffers.
Real bad, y’all.
So one way I try and keep all that under control is to make sure I’m as organized and have realistic numbers and plans in place.
While the new year has its own momentum to get things straight and organized at home, sometimes it’s good to spend a bit at the end of each year doing an inventory.
Thinking past what transpired in the past year, and thinking towards the new year.
Want to spend a few hours preparing for the WHOLE YEAR ahead? Yes, yes it’s possible. Print and plan away.
Plan for Your Upcoming Year’s Major Expenses
It’s a good idea to plan out major trips, doctors visits, home remodels, and other costly ventures a year ahead. That way, you don’t have financial burdens sneaking up on you.
- Make a budget for your family vacation,
- create a savings plan, and
- put it into action for the following year.
The same is true for any upcoming major expenses that you may have. This can rally take the stress off the family when the time comes.
Planning ahead for major expenses is a necessary end of the year financial task.
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Learn MoreTake a Look at Your Credit Cards
It can be beneficial to re-group and organize your credit cards (if you have them) from time to time. The end of the year is the perfect opportunity to do this.
- How are the rewards/points working for you?
- Are there any that should be discontinued?
- Do you want to make a plan to pay them off this year?
- Are your credit card’s terms as favorable as they can be?
- Is it time to consolidate?
It will feel great to go into the year with a clear plan and direction for your credit. Don’t leave anything on the table. Get the best deal you can.
Meal Planning, Pantry, Kitchen Troubleshooting, Morning Routine, Evening Routine, Daily To Do’s, Chores, Cleaning, Family Priorities, Monthly Goals, Financial Goals, Debt Payoff, Let It Go Inventory, and more!
Learn MoreCheck Your Credit Report
It’s beneficial to check your credit report. However, it can be a bit pricy. I think that the end of the year is a great time to get it done.
Did you know that you are entitled to one free credit report from each bureau, each year. You can find this information and more about checking your credit at The Federal Trade Commission.
This website outlines how to locate your credit report as well as contact each bureau.
Want to spend a few hours preparing for the WHOLE YEAR ahead? Yes, yes it’s possible. Print and plan away.
Check Debt Progress
The end of the year is a great time to step back- and check the process you’ve made on paying off debt.
No matter which way you find yourself at the end of the year, you can set a plan going forward. Even if it means cutting back a few things at the beginning of the year, you can start the new year off right. Here are some tips on paying odd debt faster:
- Pay more than the minimum.
- Make payments bi-monthly.
- Pay off the most expensive loan first.
- Shorten the length of your loan.
- Use the snowball debt method.
The snowball debt method is pretty simple. Basically, you pay minimums on all your loans except the smallest one… which you dump all extra money into. Then when it’s paid off, you target the next smallest one until they are all paid.
Meal Planning, Pantry, Kitchen Troubleshooting, Morning Routine, Evening Routine, Daily To Do’s, Chores, Cleaning, Family Priorities, Monthly Goals, Financial Goals, Debt Payoff, Let It Go Inventory, and more!
Learn MoreRe-Visit Your Insurance Policies
A lot can change in a year, or maybe it hasn’t at all. Either way, it’s beneficial to open up and look at your insurance policies going into the new year.
Review any existing policies that you may have. This may mean taking a look at your…
- life insurance
- homeowner’s insurance
- car Insurance, and
- health insurance.
Here are some questions to consider when looking at these policies:
- Does this policy cover the original need? Is that need still valid?
- Will you be needing more or less coverage this coming year?
- How are these policies meshing with your budget?
Open enrollment for many business policies happens during the 4th quarter, so you may want to prepare yourself for this opportunity.
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Learn MoreGive to a Charitable Cause or Organization
You can make a difference when you give during the holiday season. There are many organizations that host events to give during the end of the year.
Furthermore, giving as a family can be great moral support for the kids. I have seen people give to a non-profit in honor of someone as their Christmas gift, etc.
Don’t forget to hold onto the donation receipts for your taxes.
Want to spend a few hours preparing for the WHOLE YEAR ahead? Yes, yes it’s possible. Print and plan away.
Discuss Past Finances and Future Goals with Your Family
I am a believer in the power of communication. When dealing with finances, it’s critical. The end of the year is a great time to discuss, re-group, and plan for financial goals.
- Go over online statements, receipts, bills, savings, and bank account information.
- Discuss financial spending and expenses.
- Outline some goals or projects for the upcoming year.
- Make sure everyone is on the same page and in agreement when it comes to the family finances.
It’s good to talk to the kids about money. I’m not suggesting that we burden our children with topics that are “over their pay grade.” However it’s good to include them in knowledge of their family’s hard work and savings.
Teach your kids about spending habits, living within your means, and saving. It will go a long way towards their future financial endeavors.
FAQs
Modeling being responsible with your finances is a great place to start! Then, have age-appropriate conversations with your kids about finances as things come up, like them asking for a new toy at the store or talking about saving for a vacation. We have missions on financial life skills in Life School at Home if you would like more guidance in this area!
For the paper copies of insurance policies, paper receipts, etc. a filing system that includes files for each type of paperwork is helpful. Otherwise, spreadsheets like Excel or Google Sheets and other online bookkeeping programs work well! I like to create categories for each specific area so that nothing falls through the cracks.
Find a time where the kids are in bed or otherwise occupied to sit down and look over these things with your spouse. If you don’t have an extended amount of time, try creating a list of tasks and tackling an item or two after the kids are in bed for a week until you’re done.
Look through all of the financial goals you want to pursue in the New Year and prioritize them. Choose the one or two financial goals that will have the most impact for your family and pursue that in the coming year.
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