Can you believe we’re in the final stretch of the year? If you’re wondering how to end the year strong, especially when it comes to your money moves, you’re in the right place!
As your financial big sis, I know this time of year can feel overwhelming – between holiday shopping, family gatherings, and trying to figure out your money situation before January rolls around.
But here’s the thing: these last few weeks can be a game-changer for your financial future. I’ve helped thousands of people transform their money story, and I’m here to show you exactly how to make these final moments count. Trust me, future you will be so grateful you took action now!
In this post, you’ll learn exactly how to maximize your year-end tax benefits, optimize your spending, protect your family’s future, and set yourself up for an incredible 2025. Keep reading to discover the 6 essential moves you need to make before the ball drops!
Key Takeaways:
- December is crucial for maximizing tax benefits and optimizing your financial position
- You may be losing hundreds of dollars monthly on forgotten subscriptions and missed tax advantages
- Creating a proper estate plan can be done in under an hour and costs less than you think
- Smart holiday shopping strategies can help you save up to 6% on purchases you’re already planning to make
- Most people can save an extra $600+ before year-end by implementing just a few of these strategies
- The tools and services mentioned in this post can help automate and simplify your financial moves
Let’s dive into the moves that will help you close this year with confidence and set yourself up for an amazing financial fresh start!
1. Get Crystal Clear on Your Numbers ?
Before we can make power moves, we need to know exactly where we stand. This is like taking a “financial selfie” – it might feel awkward at first, but it’s essential!
Track Every Dollar
One of my favorite tools for this is YNAB (You Need A Budget). I love how it helps you give every dollar a job and really understand where your money is going. Their four-rule method has helped countless members of our Live Richer community to take control of their finances. The average YNABer saves $600 in their first two months – imagine starting the new year with that extra cushion!
Master YNAB’s Four Rules
- Give Every Dollar a Job: Assign all your money specific tasks before you spend it
- Embrace Your True Expenses: Break down large, irregular expenses into manageable monthly chunks
- Roll with the Punches: Be flexible when life happens (because it will!)
- Age Your Money: Work toward spending money that’s at least 30 days old
Audit Your Subscriptions
Real talk: most of us are paying for subscriptions we forgot about. This is where Rocket Money comes in clutch! They’ve helped millions of people identify and cancel unwanted subscriptions. One of my students recently discovered she was paying for three different streaming services she wasn’t even using – that’s money that could be going toward her goals!
Common Hidden Subscriptions to Check:
- Streaming services (music, video, gaming)
- App subscriptions
- Magazine subscriptions
- Gym memberships
- Cloud storage services
- Premium website memberships
Create a Year-End Spending Analysis
Understanding your spending patterns helps you make better decisions for the upcoming year. Break down your expenses into categories:
- Fixed expenses (rent/mortgage, utilities)
- Variable expenses (groceries, entertainment)
- Debt payments
- Savings and investments
- Discretionary spending
2. Maximize Your Tax Advantages ?
Y’all, don’t leave money on the table! These last few weeks are crucial for making smart tax moves that could save you thousands.
Retirement Account Contributions
Check if you’ve maxed out your retirement contributions for the year. This isn’t just about future you – it’s about reducing your taxable income right now. If you haven’t hit the limit, consider increasing your contributions for these final paychecks.
Key Retirement Accounts to Review:
- 401(k) contributions (2024 limit: $22,500)
- IRA contributions (2024 limit: $6,500)
- Catch-up contributions if you’re over 50
- HSA contributions if eligible
Charitable Giving
Did you know you can make charitable donations until December 31st for this year’s tax deduction? And here’s a money-saving hack: use Sequin’s debit card for your charitable donations – you can earn up to 6% cashback while doing good! That’s what I call a win-win.
Smart Giving Strategies:
- Donate appreciated stocks to avoid capital gains tax
- Bundle multiple years of donations
- Keep detailed records of all charitable contributions
- Consider qualified charitable distributions if you’re over 70½
Tax Loss Harvesting
If you have investments in taxable accounts, consider tax loss harvesting to offset any capital gains. The Motley Fool can help you make informed decisions about which positions to adjust.
3. Protect Your Family’s Future ????
One of the most important yet often overlooked aspects of financial planning is protecting your loved ones. Trust me, this is something you want to handle before the new year begins.
Estate Planning Made Simple
I know estate planning sounds intimidating (and expensive), but it doesn’t have to be! Trust & Will has revolutionized this process by making it accessible and affordable online. You can create a legally valid will in about 15 minutes, and their trust plans start at just $499. That’s a small price to pay for protecting your family’s future.
Essential Estate Planning Documents:
- Last Will and Testament
- Living Trust (if appropriate)
- Healthcare Directive
- Power of Attorney
- Beneficiary Designations
Review Your Insurance Coverage
Take a moment to review your insurance policies. Are your coverage amounts still appropriate? Have you had any life changes that need to be reflected in your policies?
Insurance Policies to Review:
- Life insurance
- Health insurance
- Disability insurance
- Property insurance
- Liability coverage
- Long-term care insurance (if applicable)
Update Important Documents
Make sure all your important financial documents are up to date and easily accessible:
- Bank account information
- Investment account details
- Insurance policies
- Passwords and digital assets
- Emergency contacts
4. Smart Holiday Shopping Strategy ?
Let’s be real – holiday shopping can wreck your budget if you’re not careful. But I’ve got some tricks up my sleeve to help you save!
Maximize Cash Back
Before you buy anything online, make sure you’re using Rakuten. They partner with over 3,500 stores, and you can earn serious cash back on purchases you were going to make anyway. New members even get a $30 bonus when they spend $30 – that’s like getting your first purchase for free!
Cash Back Optimization Tips:
- Install the browser extension
- Stack rewards with credit card points
- Check for special double cash back events
- Compare rates across different cash back platforms
Set Clear Boundaries
Create a specific holiday budget and stick to it. Use YNAB to create a special category for holiday spending, so you can track every dollar and avoid January regret.
Holiday Budget Categories:
- Gifts for family and friends
- Holiday meals and entertaining
- Decorations
- Travel expenses
- Charitable giving
- Holiday cards and shipping
Smart Shopping Strategies
Make your holiday shopping more efficient and cost-effective:
- Create detailed shopping lists
- Research prices before buying
- Use price tracking tools
- Shop during sale events
- Consider homemade gifts
- Plan for shipping costs
5. Review and Rebalance Investments ?
Before the year ends, take a close look at your investment strategy and make necessary adjustments.
Portfolio Review
Use tools like Motley Fool’s Stock Advisor to evaluate your current investments and identify opportunities for the coming year. Their market-beating recommendations can help you make informed decisions about your portfolio.
Key Areas to Review:
- Asset allocation
- Individual stock performance
- Fund expense ratios
- Investment goals alignment
- Risk tolerance assessment
Investment Strategy for the New Year
Develop a clear investment plan for the upcoming year:
- Set specific investment goals
- Determine asset allocation targets
- Plan regular contribution schedules
- Identify new investment opportunities
- Consider tax-efficient investment strategies
6. Set Yourself Up for Success in the New Year ?
The final weeks of the year are perfect for laying the groundwork for an amazing financial new year.
Check Your Credit
Before making new year money moves, check your credit score. SoFi® Credit Monitoring offers free weekly updates and helps you understand what’s impacting your score. Plus, new members get $10 in rewards points just for signing up!
Credit Improvement Strategies:
- Review credit reports for errors
- Set up automatic payments
- Keep credit utilization low
- Monitor for fraudulent activity
- Plan credit-building strategies
Automate Your Finances
Set up automatic transfers for savings and bill payments. This simple step can transform your financial life in the new year.
Automation Checklist:
- Bill payments
- Savings transfers
- Investment contributions
- Debt payments
- Emergency fund building
Set Clear Financial Goals
Establish specific, measurable goals for the coming year:
- Short-term goals (3-6 months)
- Medium-term goals (6-12 months)
- Long-term goals (1+ years)
- Emergency fund targets
- Debt reduction goals
Your Year-End Financial Checklist ✅
To make this super actionable, here’s your complete checklist:
- Download YNAB and set up your budget categories
- Use Rocket Money to audit and cancel unused subscriptions
- Review and max out retirement contributions if possible
- Set up Trust & Will for basic estate planning
- Install the Rakuten browser extension for holiday shopping
- Check your credit score with SoFi® Credit Monitoring
- Consider Motley Fool for investment guidance
- Create your automated savings plan for the new year
- Review and update insurance coverage
- Set specific financial goals for the new year
The Bottom Line
Remember, how you end this year sets the tone for the next one. You don’t have to do everything at once – even taking just one or two actions from this list can make a significant impact on your financial future.
Ready to take action? Start with the step that feels most manageable to you. I’m here cheering you on every step of the way!
How are you planning to end your year strong? Do you need more financial guidance as the New Year comes? Get all of my guides here!
My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters, I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.
What’s the Lisa Rule?
If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisa. I feel protective over you and your financial journey. YNAB, Rocket Money, Sequin, Trust & Will, Rakuten, SoFi® Credit Insights, and Motley Fool Stock Advisor pass my Lisa Rule. Yes, I am an affiliate of these companies, and I earn a commission off of referrals, but I would not recommend a product or service that I didn’t believe was helpful and useful.