If you’re making a (financial end-of-year) list, and checking it twice, you’re well on your way to making your next year nice.
Here are 9 things to do for better finances this year. (Our tip: Commit to completing two steps each month, starting in January. By summer, you’ll be in great shape!)
1. Check your credit at annualcreditreport.com
- Report any errors you find
- Pay off any negative things you see, or ask for settlements
Learn more about credit report best practices—and how our team can help you make the most of your credit report—here.
2. Review all of your accounts.
- Go online, or get out those paper statements
- Make note of all automatic withdrawals (memberships, subscriptions, streaming services, etc.) and any fees; you’ll need these for step 3 and step 4
3. Review your subscriptions.
- Review the information you gathered about memberships/subscriptions/automatic withdrawals in step 2
- Cancel any you haven’t used in the last 30 days
4. Contact all financial institutions.
- Using the statements you gathered in step 2, review the joint owners and beneficiaries on all accounts
- Notice any fees? Ask if they can be avoided. If not, consider moving the account.
5. Talk to your HR department at work.
- Review your 401(k) and other retirement plans to ensure you’re contributing as much as you can afford
- Verify your beneficiaries, emergency contacts, and other information is up to date
- Review your FSA/HSA contributions and spend any that’s left over from this plan year
- Recalculate your payroll withholding amount
6. Contact your insurance agent.
- Review your coverage and beneficiaries for auto, life, and homeowners or renters insurance policies
- Ask if there are any discounts available
7. Check on your emergency fund.
- Ideally, you’ll want at least three months of living expenses in an easily accessible account
- Don’t have an emergency fund yet? Set up an automatic transfer or use payroll deduction to get started today!
8. Make sure you have copies of important documents.
- This is one time when paper is better than electronic! Ensure they’re in a secure, fireproof location
- Let someone in your family (or a close friend) know where these documents are and be able to get to them, if needed
9. Make sure your will is up to date.
- If you don’t have a will, commit to having one in six months.
- If either you or your significant other travel often, ensure you have an up-to-date power of attorney.
