End of Year Check List

As I write this post mid December, I wonder what things I need to gather and prepare for the coming year in terms of retirement planning which also includes tax preparation. 

Certainly, I need to organize my paperwork for my finances, and also get all my "to-do" list planned out. 

Here are a few points I need to make as the year closes and prepare for 2024. 

CHECK LIST

• Review your net worth statement - It's good practice to compare how you did this past year and last year. Add all of your assets minus your liabilities. From there you'll have a sense of what you have to work with and help you navigate for the new year. In addition, you can make some nice improvements going into the new year. 
• Review your savings strategy - Are you saving enough? Is there a goal in place to get to where you want to be? What are you saving for, are you on target? These are just some of the questions you should answer to guide you to better saving as you are close to retirement. 
• Saved enough in your emergency fund - So many recommendations out there, how much to saving for an emergency? Some say 3-6 months of expenses, others say, save for two years worth of expenses, as you are no longer working, so if anything happens, you'll have a buffer to combat any downturn in the economy. Personally, I think saving at least 6 months should do it and saving it in a high interest bearing savings or money market account. FDIC insured, of course. 
• Plot out your trips/ or high ticket expenses - Say you have a couple of big trips planned in the new year, have you saved or will save for these trips? Good idea to budget for these trips. Or if you have a home expense, i.e. new windows, it would be a good idea to save for that to avoid being in debt. 
• Saving for yearly expenses - Good idea to budge for property taxes, yearly subscriptions, these can creep up and blow your budget. Great start is to set aside the dollar amount before the bill is due. I say automate to deposit into a high interest bearing account.
• Pay credit card balances in full each month - this allows you to be ready when your on retirement mode on day 1. The last thing you want to contend with is balances that are not paid off at the end of each month and incur interest which can throw off your budget as a retiree. Make this a priority to not let this become a problem. 

Finally, it's a great idea to review all your expenses this past year and see where you can cut to manage your overall expenses in the new year. 

Let's get out there and make your financial life easy!