As we approach the end of the year, it’s the perfect time to reflect on your financial journey and set the stage for a successful 2024 and beyond. In this handy little guide, we’ll explore key areas that deserve your attention as you wrap up 2023 and ring in 2024. 🎉
So let’s dive into the crucial aspects of your year-end financial review! 💰✨
Finances: Assessing Your Fiscal Health
Budget Review: Take a close look at your budget to evaluate your spending habits over the course of this year. Identify areas where you excelled and areas that may need adjustment for the upcoming year. 📊💡
Emergency Fund: Ensure that your emergency fund is adequately funded. This financial cushion is crucial for unexpected expenses and provides peace of mind. Don’t have an emergency fund yet? Don’t panic! I do recommend having 3-6 months of expenses in an emergency fund, but that can be a big, overwhelming figure. Just set your overall goal and a bunch of teeny ones along with it, then start sending a small percentage of your profits into that account. Even just 1% can build up over time, and as you see yourself getting closer to your goal, it will motivate you to increase your transfers into the account to get you there faster! (every journey starts with a single step, and all that jazz). 💪💸
Taxes: Prepare for a Seamless Filing Season
Gather Documentation: Start compiling all necessary tax-related documents, including income statements, expense receipts, and any tax-related correspondence. 📑🧾
Evaluate Deductions: Review potential deductions and credits that could lower your tax liability. Consider consulting with a tax professional to optimize your tax strategy. 💡💼
Retirement Savings: Secure Your Financial Future
Contribution Limits: Confirm that you’ve maximized contributions to retirement accounts such as 401(k)s or IRAs. Take advantage of catch-up contributions if you are eligible. And set goals for next year! Every little bit helps in the long run, so don’t worry if you can’t contribute the max just yet. It’s a good habit to build. 📈💰
Investment Portfolio: Assess the performance of your retirement investments and consider rebalancing your portfolio if needed. 📊
Charitable Giving: Make a Lasting Impact
Review Contributions: Review your charitable contributions for the year and ensure you have documentation for tax purposes. Remember, even though your tax preparer doesn’t NEED receipts to file your taxes, should you get audited, the IRS is going to want to see a receipt for EVERY. SINGLE. Expense you’ve claimed. If you can’t provide it, guess what? They’ll ding ya, and you’ll have to pay penalties. 📉🤔
Set Next Year’s Goals: Plan your charitable giving strategy for the upcoming year. Consider causes that resonate with you and align with your values. Just as with your emergency fund, can you set a small goal that you can increase over time? 🌍🎯(Stay tuned for next week’s post where I REALLY get into Goal Setting…it’s a doozy of a post!)
As you embark on your year-end financial review, remember that each element plays a crucial role in your overall financial well-being. But also remember that where you are now is just that – where you are NOW. Beating yourself up for not being as far along as you “should” be, for not saving enough, for spending too much, is NOT going to be motivating going into the New Year. Just take the time to assess your finances, prepare for taxes, and set up your goals and some processes for the year ahead. If you have questions or need assistance with your year-end financial review, don’t hesitate to reach out. Here’s to a prosperous and financially sound future! 🚀🌟