Honesty. It’s such a lonely word, as Billy Joel so famously sings. It takes courage to be honest. And as the year winds down and people begin to think about their financial goals, and how well their financial plan helped (or didn’t help) them achieve those goals, honesty is more important than ever. So as we take you through this end-of-year financial checklist, clearly keep in mind what you set out to achieve way back on January 1.
1. Review Your Budget and Spending
Start your year-end financial checkup by examining how well your 2025 budget worked for you. Did you stay on track with your monthly projections? Were there categories where spending exceeded expectations, or areas where you consistently had a surplus?
Next, take a look at your bank and credit card statements for patterns. Maybe dining out costs more than planned, or a subscription service quietly ate away at your budget. Conversely, perhaps you saved more than anticipated in categories like travel or utilities.
Use what you learn to realistically adjust your 2026 budget and financial planning checklist. For example, you may want to reallocate funds toward emergency savings, increase your retirement contributions, or prioritize paying down debt. Small course corrections now can make a big impact by year’s end.
2. Maximize Retirement Contributions
No end-of-year financial checklist would be complete without a look at your retirement savings. Have you contributed as much as you planned to your 401(k), IRA, or other retirement accounts? For many workers, contributions must be made by December 31 to count for the current tax year.
If you haven’t hit the maximum limit, consider increasing your final pay-period contributions or making a one-time deposit if your budget allows. These contributions may lower your taxable income, offering a financial benefit both now and in the future.
And if you’re 50 or older, don’t forget about catch-up contributions. These allow you to save more than the standard limit and can meaningfully accelerate your retirement preparedness.
3. Evaluate Your Investments and Portfolio Performance
Year-end is the natural moment to review all of your investments, not just your retirement accounts. Analyze gains and losses, compare performance to your expectations or benchmarks, and assess whether your asset allocation still aligns with your risk tolerance and long-term goals.
If your portfolio has drifted due to market fluctuations, consider rebalancing. Selling assets that have grown disproportionately and reinvesting in underrepresented areas can help maintain a healthy balance.
This is also the time to explore tax-loss harvesting: selling losing investments to offset capital gains and reduce your tax liability. Because the rules can be complex, it’s wise to consult with a financial advisor before making these moves. (Engaging an advisor for any number of complex financial moves is, in our humble opinion, one of the best new year financial tips anyone can receive.)
4. Check Your Tax Strategy
Before the calendar flips to 2026, gather the documents and information you'll need for tax season. Review potential deductions and credits that can reduce your tax bill, such as educational expenses, energy-efficient home improvements, or childcare costs.
If you’re planning charitable donations, ensure they’re completed by December 31 to count toward the 2025 tax year. Donating appreciated investment assets, contributing to donor-advised funds, or bundling charitable gifts can also be effective tax strategies.
If your financial situation has changed this year—including a new job, new home, or any major purchases—it may be beneficial to schedule a conversation with your accountant or financial advisor to ensure you’re optimizing your tax position.
5. Plan for 2026 Goals
Now is the ideal time to map out your financial goals for the coming year and even come up with a financial planning checklist to that effect. Are you aiming to build a larger emergency fund? Pay down high-interest debt? Save for a major purchase? Define your priorities before end of year and create a plan to support them.
Use this end-of-year financial checklist opportunity to review your insurance coverage as well, including health, life, disability, and property insurance. Ensuring your policies still meet your needs can prevent costly gaps in protection.
Finally, revisit any estate planning documents, including wills, trusts, and beneficiaries, to confirm everything is current and aligned with your wishes.
Honesty Is the Best Policy
Remember that even small steps toward budgeting, saving, investing, and planning can have a powerful long-term impact on your financial stability. And a thoughtful year-end review, like this one, sets the stage for a more confident, organized, and financially healthy new year. Of course, an end-of-year financial checklist can only get you so far.
Math matters, but only when it’s aligned with an individual’s priorities. Be honest about what you wanted to achieve in 2025, what you actually achieved, and what you want to achieve in 2026. And if you need any help aligning your priorities with your financial plan, or even just want some new year financial tips, Tide Creek Financial is always here to help.
Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC (www.SIPC.org). Tide Creek Financial Group is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. Supervisory Office: 11350 McCormick Rd., Executive Plaza IV, Suite 200, Hunt Valley, MD 21031. (410) 785-7654.
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