As we near the end of the year, it’s always a great time to take a step back and re-evaluate where we are with our personal finances. With the year 2020 being as unprecedented as it was, many of us may have overlooked some important financial steps that need to be taken before the end of the year. Here’s a year-end personal finance checklist that will help you stay on top of your finances and set you up for success in the coming year.
1. Review and Re-Balance your Portfolio
Re-evaluate your investments and make sure that your portfolio is aligned with your long-term financial goals. Consider whether any significant changes have occurred in your life that requires a shift in your investment strategy. Reviewing your portfolio annually is an essential step in ensuring that your financial plan is still on track.
2. Maximize Your Retirement Contributions
If you have not yet maximize your contributions to your retirement plan, now is the time to do so. Contributing the maximum amount to your retirement plan can not only lower your taxable income, but it can also ensure that you are on the right track for retirement.
3. Review Your Insurance Coverage
Your life circumstances and needs can change over time, so it’s essential to make sure your insurance coverage still meets your needs. Review your life, health, and disability insurance coverage to ensure that you are adequately protected in case of any unfortunate events.
4. Make Charitable Donations
If you are inclined to donate to charities, it’s important to make your contributions before the end of the year to qualify for tax-deductible contributions for that year. Make sure to do your research before donating to a charity to ensure that it aligns with your values and goals.
5. Review Your Budget and Expenses
As we all know, creating and sticking to a budget is critical to financial success. Re-evaluate your budget and expenses to make sure you are investing in your future instead of wasting money on non-essential expenditures.
In conclusion, taking these financial steps can help you stay financially healthy and on track to attaining your long-term goals. By reviewing your portfolio, maximizing your retirement contributions, reviewing insurance coverage, making charitable donations, and reviewing your budget and expenses, you can set yourself up for financial success in the coming year.
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