A new year brings new possibilities, and starting the year off right with a smart financial plan sets you up for a more secure financial future. Use this annual financial review checklist to identify your priority areas, along with tips to help you kickstart your progress.
Reflect On Last Year’s Goals
Review your financial goals from last year. Celebrate your achievements and work to understand why some goals weren’t met. Adjust your goals for the new year to be specific, realistic, and aligned with your long-term vision.
Review Your Spending
Track your expenses and create a realistic budget that includes essentials, savings, and discretionary spending. Create a plan to pay off high-interest debt and save for long-term goals.
Evaluate Your Savings
Check your emergency fund, retirement contributions, and other savings. Make sure you’re saving enough for both short-term and long-term goals. A healthy emergency fund will cover 3–6 months of expenses. If possible, contribute enough to your retirement accounts to maximize employer matches and tax advantages.
Review Debt
Take inventory of all outstanding debts, including credit cards, student loans, and mortgages. Prioritize high-interest debts for faster repayment and consider refinancing to reduce interest rates or monthly payments. Lingering debt can make it tougher to achieve other financial goals.
Check Your Tax Withholdings
Did you recently get married, welcome a new baby, buy a home, or experience changes to your household income? Major life changes may require updating your federal income tax withholding. Use the IRS Tax Withholding Estimator to avoid surprises next tax season.
Compare Insurance
You could be overpaying for insurance. Take time to compare policies and consider switching if you can get similar coverage for less.
Examine Your Credit Reports
Get free credit reports from the three major bureaus at AnnualCreditReport.com. Review each report for errors and dispute any discrepancies to avoid damaging your score.
Regularly monitor your credit score throughout the year with tools like Credit Score & More at Credit Union of Denver. This allows you to check your score for free every day without affecting your score.
Utilize Digital Banking
Sign up for Digital Banking for easy access to accounts, card management, mobile deposits, and transfers. Easily enroll in eStatements to stay better organized.
Prepare For Retirement
Retirement planning has many stages, and you’ll want to determine what you want retirement to look like for you and what it would take to achieve that goal. As you plan for retirement throughout your career, increase your retirement savings as your income grows. If you’re already retired, consider exploring additional income streams.
Create Or Review Your Estate Plan
Essential documents, such as a will, trust, and financial and healthcare powers of attorney are necessary for proper estate and legacy planning. Review your beneficiaries on all your insurance policies and financial accounts and make any changes needed.
Speak With a Knowledgeable Financial Advisor
Set up a consultation with a financial advisor to review your situation and refine your financial plan. The Investment and Retirement Center located at Credit Union of Denver provides investment advice, asset management, and insurance services through LPL Financial. We also offer free financial coaching by Certified Credit Union Financial Counselors to help you accomplish your financial goals through education and guidance.
A beginning-of-the-year financial review can help you start off on the right foot. By reflecting on the past and planning for your future, you can take control of your finances and work toward achieving your goals.
Expand your financial knowledge with the help of Credit Union of Denver's blog. We publish articles on various topics all year long to help you at every stage of life.