The last few months of the year are the ideal time for a full review of your financial situation, both because some decisions have a deadline within the tax year itself, and because it's a good moment to plan the year ahead with perspective.
Review any outstanding tax-advantaged contributions
If you still have room to make contributions to pension plans or a PIAS within the annual limits that qualify for tax relief in that specific tax year, December is your last chance, since these contributions must be made within the corresponding calendar year to count toward that year's tax return.
Take stock of your budget for the year
Review how your budget has evolved over the year: did you meet your planned savings goals? Are there spending categories that have consistently drifted from what you planned? This annual review gives you a perspective that month-to-month tracking doesn't always make clear.
Review your subscriptions and small recurring expenses
As explained in other articles on this blog, this is a good time to do your annual subscription audit and spot small recurring expenses that have piled up over the year, before carrying costs that no longer add real value into a new year.
Check whether your family situation has changed for tax purposes
If there have been significant changes in your family situation during the year (the birth of a child, a change in marital status, a change in the disability level of a dependent), make sure you've reported it to your employer via form 145, so that your withholding for the last months of the year already reflects your updated situation.
Review your emergency fund
Check whether your emergency fund is still adequate for your current fixed expenses, which may have changed over the year (a rent or mortgage increase, new fixed costs), and adjust it if needed for the coming year.
Set (or revisit) your savings goals for next year
Use this moment to set concrete financial goals for next year, following the method explained in the article on setting realistic financial goals, rather than starting the new year without a clear plan.
Review your current insurance policies
Check that the insured amounts on your policies (home, life) are still appropriate for your current financial and family situation, adjusting them if relevant circumstances have changed during the year.
Project your savings for the year ahead
Our compound interest calculator lets you project how your savings would grow next year based on the new goals you set during this year-end review.