Written by Hazel Secco
Estimated reading time: 4 minutes
Table of contents
As the year begins to wind down, it’s natural to pause and take stock of where you are. The holiday season often feels full and fast, but it offers one of the most powerful opportunities of the year: the chance to reset with intention.
Whether you feel proud of your financial progress this year or slightly off track, these final weeks are not about perfection—they’re about awareness. Small, thoughtful decisions made before December 31st can create meaningful momentum (and potential tax savings) for the year ahead.
Here is a grounded checklist to close the year with confidence.
1. Reflect on the Year (Without Judgment)
Before diving into the numbers, look at the bigger picture. What felt like a win this year? What felt heavy? Did you navigate a job change, an unexpected expense, or finally reach a savings goal?
The Pivot: This isn’t just about feelings; it’s about data. Understanding why you overspent or underspent helps us build a more realistic plan for next year that actually fits your life.
2. Give Your Budget a “Reality Check.”
Spending habits shift. Year-end is the perfect moment to look at your patterns with fresh eyes.
- Review recurring subscriptions: Are you paying for streaming services or gym memberships you haven’t used in 6 months?
- Check the “Lifestyle Creep”: Did your income go up, but your savings stayed the same? A few small adjustments here can free up cash flow for the things that actually matter to you.
3. The “Use It or Lose It” Review (Time Sensitive)
This is where the calendar matters. Unlike IRAs (which you can contribute to until April), 401(k) contributions usually need to be made by December 31st to count for this tax year.
- Check your pay stub: Are you on track to max out your employer match?
- Do you have an FSA (Flexible Spending Account)? Check your plan rules—you often need to spend those funds before year-end or risk losing them.
4. Tax Harvesting & Investment Review
If you have taxable investment accounts, the recent market volatility might actually be useful.
- Tax Loss Harvesting: We can review your portfolio to see if selling certain positions at a loss now can help offset capital gains taxes later.
- Rebalancing: Has the market run-up skewed your portfolio? We may need to trim some winners to get your risk level back in line with your comfort zone.
5. Organize for Tax Season Now
Tax season feels much lighter when you aren’t scrambling. Use these quiet weeks to create a folder (digital or physical) for:
- Charitable donation receipts.
- Medical expense summaries.
- Form 1099s as they arrive.
Pro Tip: If you are a business owner, ensuring any necessary equipment purchases are made before Dec 31st can impact your 2025 tax bill.
6. Set Intentional Goals (Rooted in Values)
The most meaningful goals are rooted in why, not just how much. As you look toward the new year, ask yourself what financial stability looks like for you. Is it a stronger emergency fund? Paying off debt? Or is it simply creating breathing room so you don’t stress about the grocery bill?
Let’s Finish the Year Strong
Reflecting on your own is powerful, but you don’t have to do the math alone. If you are unsure if you’ve maximized your tax-advantaged accounts or just want a second set of eyes on your 2025 plan, reach out.
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Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risks, including possible loss of principal.