As another year draws to a close, there is no better time to take a deep dive into your finances. An end-of-year financial review is more than just numbers on a spreadsheet — it is a chance to reset, refocus, and build a solid foundation for your future. Assessing your spending, preparing for tax season, and evaluating your financial goals ensures you enter the new year confident and in control.
The first step to financial wellness is understanding how and where you spent your money over the past year. Take some time to analyze your spending habits by reviewing bank statements or transaction records to see what had the greatest financial impact. Maybe your income or lifestyle has changed, and your budget needs an update. Were there unexpected expenses, or did you spend more in certain categories — like dining out or subscriptions — than you realized?
Reviewing your spending patterns will help you to course-correct any overspending. And if you have new goals like saving for a home, going on a dream vacation, or building an emergency fund, updating your budget will help you allocate funds to achieve those goals.
United Bank’s Budget Calculator is a great tool to help you build a new budget or update your old one with all your goals for the new year in mind.
It is easy to lose track of your finances when balancing too many accounts. Review all your financial accounts, including checking, savings, and credit card accounts. Take note of the balance on each and close any unused or duplicate accounts to simplify your finances and avoid unnecessary fees. Streamlining your accounts makes managing your finances easier and more efficient.
If you are wondering if your current accounts are right for you and your goals, a team member with United Bank can guide you through options for accounts that better fit your needs.
Hidden fees may seem small, but they can add up and can quietly chip away at your money. Comb through your accounts and take note of any recurring charges for things like subscriptions, memberships, and streaming services. Cancel any services you do not use, and for those you want to keep, see if bundling or switching to a cheaper alternative is possible.
Just as fees can add up, so can savings. Reviewing your frequent purchases and investigating less-expensive options is a great way to reduce your overall spending. Search for coupons, bulk and bundle options, and brand alternatives to decrease your regular expenses.
With the finish line approaching, it is the perfect time to reflect on your yearly goals. Whether you hit your targets or faced setbacks, assess where you stand and create fresh goals for the upcoming year. However, setting a goal is only as great as the plan to get there. Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals is a great way to give yourself a clear path forward. Instead of having the broad goal of “saving money,” make a specific plan. For example, you can plan to save $200 per month to have $2,400 saved up by the end of the year.
Automating your savings by setting up recurring transfers is a tremendous help; this takes the effort out of saving and ensures you are constantly working towards your goals. You can set up recurring transfers with your United Bank account and put your financial growth on autopilot.
If long-term goals are more of your focus for this coming year, United Bank has no shortage of resources. Whether you are planning for retirement or thinking about leaping into investing, a financial advisor with United Brokerage Services, Inc. can help you get started.
Debt can be a heavy burden, but with a solid plan, it is manageable. Take a close look at your outstanding debts, including loans and credit cards. Consider strategies such as debt consolidation, balance transfers, or adjusting your payment schedule to speed up your repayment timeline. An optimized debt strategy can free up funds for savings and alleviate financial stress, putting you in a stronger position as the year unfolds.
Before the year wraps up, gather all relevant tax documents and have them easily accessible to make filing as stress-free as possible. This includes not only records related to your income and expenses but also documents regarding charitable donations, student loans, health savings accounts, flexible spending accounts, retirement contributions, and other financial details that can impact your taxable income. Staying organized now will save you a headache come tax time and potentially unlock opportunities for deductions and credits.
Ready to kick off the new year with a fresh look at your finances? Take a look at this end-of-year financial checklist to get started. With your finances in order, the road ahead is bright — let’s make it your best year yet!