As 2025 comes to a close, you’ll see the typical list of year-end financial “must-do’s.”
Money experts remind people to make last-minute charitable contributions to claim the deduction for the upcoming tax season. Got extra savings? Dump it into your child’s 529 college savings plan.
Or maybe you haven’t put enough into your retirement plan, so you’re advised to “max out” your 401(k) before Dec. 31. The maximum contribution for a workplace plan is $23,500 this year. If you’re 50 or older, the catch-up provision allows an additional $7,500, bringing your total to $31,000.
And thanks to Secure Act 2.0, if you’re 60 to 63, there’s a super-catch-up of $11,250 for total max contribution of $34,750.
I’m pretty sure if you had enough money to max out your retirement account, you would have already made those moves, unless you’re expecting a huge year-end bonus.
Though recent government data shows inflation has cooled, many Americans are still struggling with affordability because of high housing costs and rising consumer prices. And many families are potentially facing the loss of health insurance due to increasing premiums.
With the current cost of living, you may be focused just on making ends meet. For you, the typical year-end suggestions are out of touch with your financial realities.
By late December, you probably don’t want to stare at a spreadsheet or feel guilty about holiday spending.
But — sorry, I have to go here — there are some actions you should consider. Here are six money moves that can help you find your bearings, clear the clutter and finally feel in control of your finances going into the new year.
Calculate your net worth
Anxiety thrives in the “unknown.”
You avoid checking your credit card or student loan balances because you fear the amount. But the fear is almost always bigger than the actual number.
One way to get your bearings is to calculate your net worth. It’s easy. List all your assets, such as money in bank accounts, investments, and the market value of your home and car. Then, list all your liabilities: mortgage, auto loan, credit card balances, student loans and outstanding tax debt.
Add up your assets, and then subtract your liabilities. Bankrate.com has a net worth calculator you can use.
The result will provide a snapshot of your financial health, helping you determine whether you’re building wealth.
According to the Federal Reserve’s latest Survey of Consumer Finances, the median net worth was around $192,900.
If your net worth is low or negative, that’s okay. Use this knowledge to enter 2026 with a plan to grow your wealth. This exercise will help with making New Year’s resolutions.
Do a beneficiary audit
Don’t have a “set it and forget it” mentality regarding estate planning.
If you’ve had a marriage, divorce or birth in the family this year, an outdated beneficiary form can cause a legal nightmare later.
When a Pennsylvania man died in 2015, he left a substantial workplace retirement account. His two brothers had expected to inherit the money. However, the beneficiary designation form on file named an ex-girlfriend as the sole beneficiary. The couple split in 1989. A lower court ruled that the ex-girlfriend was entitled to the money, which has grown to about $1 million.
Checking your documents won’t take long. Log in to your retirement and insurance accounts to ensure your beneficiary designations are up-to-date.
This is an act of love for your family, and it can help avoid chaos or expensive legal disputes.
Make a 1 percent adjustment
In 2026, the maximum contribution limit for a workplace retirement account, such as a 401(k), will increase to $24,500, with an additional $8,000 catch-up contribution for those 50 and older, for a total of $32,500. For those 60 to 63, the super-catch-up remains $11,250 for total max contribution of $35,750.
Instead of giving up on maxing out your retirement account, and, honestly, most people can’t, make a change so small you probably won’t even feel it.
Fidelity Investments recommends saving 15 percent of your gross pretax income annually for retirement, including any employer match. That’s a lot. But don’t let the “perfect” be the enemy of “good enough” for now.
If all you can afford is increasing your contribution by 1 percent for the coming year, that’s a start toward the 15 percent goal.
Do this before year-end, so your first paychecks in 2026 begin contributing to your retirement savings.
Dead-bolt your financial accounts
In the past two months, I’ve received two letters about major data breaches in which my banking account information was stolen.
Throughout the year, you may have ignored advisories from your financial institutions to set up various security features. Do not let the new year come in without following the advice.
Setting up alerts and two-factor authentication on your primary banking and investment accounts is the digital equivalent of dead-bolting your front door.
Set your security alerts on your bank and credit card accounts to the minimum setting allowed by the institution.
Review your Social Security statement
This statement provides important information about your earnings records, estimated benefits, and how much you or your family would receive in disability, survivor or retirement benefits.
If you haven’t already, sign up for an online account at www.ssa.gov/myaccount.
Check your credit
Reviewing your credit reports is like checking your home’s smoke detectors. Don’t wait until an alarm goes off.
Catching identity theft or an error now is much easier than finding it when you’re trying to buy a car or house.
Pull your free report at annualcreditreport.com, run by Equifax, Experian and TransUnion. Look for accounts you don’t recognize or errors in your balance.
By law, the three major credit agencies must give you a free copy of your file every 12 months. However, at the onset of the pandemic, the bureaus began offering free weekly credit reports.
By the time late December rolls around, the last thing you may want is another “to-do” list. But financial peace doesn’t just happen. Knock these tasks out and quiet your anxiety. You can’t move forward financially unless you know where you stand.
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