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Financial Checklist to Review Before the Year Ends

Take a look at these 8 essential points by SpotMe to review your past year and plan for the upcoming one.

It’s time to check financial achievements and lessons you’ve got this year!

As the year comes to an end, it is time for checkups and checklists. Make an appointment with your doctor to check up your health. And make a financial checklist to see how you’re doing this year, if you’ve passed any financial milestones, and use it as a benchmark to plan your finance for the next twelve months. This list below will help you review your annual finance progress. Check it out.

Review your long-term goals
Since you’ve been making money for some time, you sure have a long-term financial goal – buying a house, early retirement, being a landlord, and many more. Look back and see what moves towards your goals you’ve made this year, and plan what the next steps should be. If you don’t have long-term goals yet, it is the best time of the year to make one, isn’t it?

Review your short-term plans
Did any big change happen this year? Maybe you moved to a new place, went back to school, got married, or even separated from your partner. These changes can affect your journey to reach your financial goals. Adjust your short-term plans accordingly, so that you can achieve them without strangling yourself.

As you tick your short-term goals off the list, one by one, you are surely getting closer to your long-term goals.

Evaluate your expenses
How much have you been spending monthly? How much do you have to pay for your credit card? Review your spending and find ways to decrease your monthly expenses next year. You can start by unsubscribing that magazine you never read, cutting that landline phone that you never use, or start working out at home instead of the gym.

How is your emergency fund doing?
If you have enough emergency fund to cover three months of living expenses, slowly save more until you hit six months. If you don’t have an emergency fund, well, start making one now.

How is your insurance?
Health, life, home insurances – do you have them all? Review your policies to make sure they cover your needs and see if they need upgrading or downgrading. Don’t forget to check if any of your insurances needs renewal because you will need to make decision between renewing with the same plan or switching to another.

Superannuation and retirement
How much have you been contributing to your super? Calculate how much more you can add to your contribution next year, and how much you can save on a separate retirement savings.

Investments and debts
These are two very different things that you really need to pay attention to. See how much your investments have profited you this year. If it doesn’t meet your target, maybe it’s time to switch to other types of investment. As for the debts, how much do you have left and how many months will it take for you to repay them?

Update your documents
It’s important to make sure all your documents are updated. From bank accounts to will, and from mortgage to car loan. You have to update your address if you move houses. You also need to update your will if there are any changes in your life this year. Updating your documents also helps you protect your personal data from identity thefts.

Not only new year resolutions, end of year is also a perfect time to look back to all your achievements and failures – both financially and on other aspects in life. Have a wonderful new year!

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