10 Steps to Finish the Year Financially Strong
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December 16, 2025
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Banking Tips
1. Take Inventory
Review your major life events from the past year and upcoming changes that affect your finances.
- Did you buy a home or car?
- Is someone in your household starting college or entering repayment for student loans?
- Have you merged finances through marriage or cohabitation?
Examine your income, monthly payments, and create a budget that reflects any factors affecting taxes and your overall financial picture.
2. Maximize Retirement Accounts
Take full advantage of employer contributions to your 401(k) or similar plans.
- The 401(k) contribution deadline is usually December 31.
- IRA contributions can typically be made until Tax Day.
Contributing now helps you reach retirement goals and may reduce your current-year tax bill.
3. Tackle Debt
Once the holiday season winds down, focus on paying down high-interest credit cards or loans.
- Consider transferring balances to a zero- or low-interest card to pay off debt faster (note: fees may apply).
- Even small payments toward high-interest debt can save money over time.
4. Review Your Credit Report
Check your credit report for errors or fraudulent activity.
- Each bureau (Experian, Equifax, TransUnion) provides one free report per year.
- Monitoring your credit regularly can help you catch mistakes and track improvements.
5. Enroll in Health Insurance
Make sure you select a plan during the open enrollment period:
- For 2024 coverage, enrollment runs November 1, 2024 – January 15, 2025.
- Enrolling by December 15 ensures coverage starts January 1.
- Enrollment after December 15 means coverage begins February 1.
Don’t risk going without coverage.
6. Use Your Flexible Spending Accounts (FSAs)
Check your FSA balance before the year ends, unused funds are typically lost.
- Schedule medical appointments, preventive screenings, or dental cleanings.
- Even small contributions and use of benefits can save money and support your health.
7. Review Estate Planning
Life changes including marriage, divorce, birth, or death can impact your estate plans.
- Verify beneficiaries and trustees are up to date.
- Draft or update a will to ensure your loved ones are protected.
8. Build an Emergency Fund
Only 44% of Americans have enough savings to cover three months of expenses.
- Even small automatic deposits into a dedicated savings account can help.
- An emergency fund provides stability against unexpected costs, from inflation to home repairs.
9. Set New Financial Goals
Reflect on your spending habits and upcoming plans:
- Are there areas where you can cut back?
- Any big purchases or family vacations you want to budget for?
- Set clear, achievable financial goals for the new year.
Taking these steps now can help you end the year on solid financial footing, and set you up for a confident, empowered start to the new year.