Year-End Financial Checkup: Assessing Your Financial Health Before 2024

As we swiftly approach 2024, now is the perfect time for a Year-End Financial Checkup. It’s an opportunity to evaluate your current financial standing and reassess your overall financial objectives. Have you achieved the goals you set for yourself this year? If not, what level of progress have you made? Are you diligently moving toward your targets step by step? Can you see your end-of-year goals on the horizon? Considering the challenges that 2023 may have presented, you might have encountered obstacles that temporarily diverted your attention from your financial goals. However, don’t be disheartened! As we near the end of the year, it’s crucial to reexamine and recalibrate your annual financial plan. Before looking ahead, take a moment to reflect on your recent financial past.

Consider Your Annual Spending

Examine your finances and your spending habits. Reviewing your spending habits can assist you in setting more relevant and attainable goals for 2024. Examine your monthly expenses since the beginning of 2023. What happened to your money? Were the majority of your expenses necessary? Have your spending habits kept you from gradually paying off your debt? Use our calculator to list your expenses and determine how much you’re spending.

It is critical to discover opportunities for improvement in both your overall expenses and your debt levels. This is critical if you want to meet your financial goals for this year while also preparing for financial success in 2024.

Begin Making Plans for the New Year Right Away

Create your annual financial plan by incorporating what you learned this year to help set – or reset – reasonable goals for the coming year. You can create a sustainable budget after identifying all expenses that can be eliminated or reduced.

Consider all of the numerous ways you might pay off debt and save for the things that are most important to you. Be inventive! Consider the best ways to put your tax refund, end-of-year bonus, and other “extra” cash to use. While you continue using your monthly paychecks to satisfy your immediate financial needs, additional incoming monies can help you reach your long-term goals.

Examine Your Retirement Plan, Insurance Policies, and Other Investments

Whether retirement is years away or just around the corner, now is the time to assess where you stand in terms of fulfilling your objectives. A good place to start is to ensure that you fully utilize any matching fund plan your company may provide. Because your retirement contributions may reduce your taxable income, you should include your 2023 contributions in addition to your 2024 contributions. There may still be ways to lower the amount of taxes you pay this year.

It’s also a good opportunity to look at your other investments. It’s critical not to disregard your insurance needs and to evaluate how well your current insurance policies are protecting you and your loved ones.

Review Your Insurance Coverage

Insurance plays a vital role in protecting you against unforeseen events such as medical emergencies, property damage, or loss of life. Evaluate your insurance coverage to ensure you have adequate protection for your current needs and that you are not overpaying for coverage. Review your health, life, and property insurance policies regularly to ensure they align with your current circumstances and risk profile.

Additional Tips For a Comprehensive Financial Checkup

Along with the five key steps mentioned above, consider these additional tips for a comprehensive financial checkup:

  • Create a Budget: If you don’t already have one, create a budget to track your income and expenses. This will help you identify areas where you can cut back on spending and increase your savings. Budgeting is essential for managing your finances effectively and achieving your financial goals.
  • Build an Emergency Fund: An emergency fund can provide a safety net in case of unexpected expenses, such as job loss or medical emergencies. Aim to save at least three to six months’ worth of living expenses in an easily accessible account. Having an emergency fund can alleviate financial stress and provide peace of mind.
  • Seek Professional Guidance: When it comes to investing, it’s essential to consult with a Financial Advisor who can direct you toward assets with objectives that will help you achieve your financial goals. A smart financial strategy combined with appropriate financial guidance can result in a more manageable financial future in the coming year and beyond.

Regardless of how 2023 has affected your money, you’ll want to start the new year on the right foot. By reevaluating and adjusting your goals now, you will be able to stay on track to financial health and advance toward your objectives.  

Heritage Financial Credit Union: Your Partner in Financial Wellness

Heritage Financial Credit Union is dedicated to helping its members achieve financial wellness. They offer a wide range of financial products and services, including checking and savings accounts, loans, credit cards, and investment services. They also provide comprehensive financial education resources and personalized guidance to help you make informed financial decisions.

Whether you’re just starting or managing a complex financial portfolio, Heritage Financial Credit Union is here to help you achieve your financial goals. Contact them today to learn more about their products and services and schedule a personalized financial consultation.

Remember, a year-end financial checkup is not just about reviewing numbers; it’s about taking control of your financial well-being and setting yourself up for success in the new year. By assessing your financial situation and making informed decisions, you can embark on a path toward financial stability and long-term financial security. For more details, get in touch with Heritage Financial Credit Union today.