End of Year Money Review and Reflection
As we come up on the end of the year, we may be more aware of our expenses feeling tighter or other people's expectations running up against our own financial boundaries. Now is a great time to understand and reflect on our finances while we are more aware of them. Read on to review end of year reflections exercises and questions.
Set Yourself up for Success
Have you mapped out my spending for the holidays? What are you comfortable/able to spend without compromising your financial goals and needs?
Check out my spending framework to help you understand how you can spend and save responsibility.
Have you articulated these boundaries to loved ones? It can be helpful to manage expectations around the holidays ahead of time.
If you are planning to be more frugal than past years explain to your family and friends that this year you will be working within a budget.
Consider the non-financial ways you can show up for your loved ones. Help out cooking, cleaning, being together in quality ways?
Review your Finances
What are you proud of accomplishing this year? We often focus on all of our to-dos; take this time to acknowledge how far you have come.
What are you hoping to prioritizing for your 2024 goals?
Be sure to reflect on this with your partner as well! How can you support each other and your goals together?
What unexpected expenses arose this year?
Reviewing past irregular expenses can help you plan for the future. Had a big vet bill? Dealt with an unplanned car fee? Use these circumstances to create slush funds in the future to set yourself up for success.
How are you with your retirement goals?
There are some important deadlines to be aware of for retirement contributions. The end of year marks the end of contributions towards workplace sponsored retirement accounts like 401(k)s.
You have a bit longer (until April 15, 2024) to contribute to your IRAs.
For the 2023 tax year, you can contribute up to $22,500 in your 401(k) and $6,500 in your IRA. If you are over 50, the 401(k) limit is $30,000 and $7,500 for IRAs. These numbers go up in 2024!
Where are you with your debt?
Do you have a plan for any outstanding high-interest debt? Are you aware of what your debt totals are and the current interest rates? This can be uncomfortable but I promise being informed is worth it.
If you are in a position to do so, can you donate to a meaningful cause that is important to you?
Our world could use a lot of fixing right now. Consider playing a small financial part if you are able.
