‘Tis the season—all year round—for financial wellness, and everyone’s invited!
Too often, we wait until January 1 to hit reset, promising ourselves that this will be the year we finally take control of our finances. But why wait? Your financial well-being isn’t tied to a date on the calendar—it’s something you can focus on anytime. That’s why having a financial planning checklist is so important.
It helps you regularly check in on your money habits, make intentional choices, and ensure your finances are actually supporting the life you want—not just following outdated patterns.
I love a resolution as much as the next high achiever. That said, your financial wellness isn’t something you can assess once, then set and forget.
The one constant in life is change, and this applies to your financial life as well. Personal financial factors such as income, family structure, relationships, and health will most certainly shift throughout your lifetime, just as we can expect changes in the external political and economic landscapes.
In addition, you, as an individual, will change. You’ll have new and emerging interests, needs, priorities, goals, and values that arise as you grow and mature. All of this to say, revisiting your financial circumstances and plans at least once a year is a MUST.
It’s never a bad time of year to give your finances some TLC. Below are 10 best practices to proactively engage in your financial life on an annual basis.
Take Control of Your Finances and Build Year-Round Wealth Confidence with this Financial Planning Checklist
1. Revisit Your Retirement and Investment Account Contributions
Retirement Accounts: If you contribute a percentage of your income to your employer-provided retirement account, or if you are contributing to an IRA, consider revisiting these annual contribution amounts. Do you have the capacity to contribute more? If you receive a bonus this year, what percentage will go to your retirement account? What would your paycheck look like if you chose to contribute 1, 2, or 3% more?
Taxable Investment Accounts: If you max out your retirement accounts and/or are contributing to a taxable investment account, each year revisit how much you are actively investing every month. Try to commit to a number that is both feasible and manageable for you to sustain throughout the year and then increase it annually.
2. Reevaluate Your Paycheck Withholding
Set a reminder on your calendar for the start of the new year to reevaluate your withholding from your paycheck. If you had a change in circumstances, or anticipate a future change for the coming year, then it may be time to adjust your withholding. Examples of a change in circumstances include getting married or divorced, having children, making a career change, moving to a different state, etc. These are all changes that would have an impact on your taxes.
3. Update Your Estate Plan
Best practice dictates you should review your estate plan at regular intervals (every few years) or during key life events (like loss, divorce/marriage, additions to the family, etc.). Update beneficiaries, review the fine print in your will or trust, determine a medical and financial power of attorney, and ensure that you have documented or communicated your wishes for your assets.
The last thing you want is for the courts to decide who gets what, where it goes and/or who the best person to raise your children would be if something were to happen to you. That’s for you to decide – make sure you document your wishes.
4. Create 3 Short-Term Financial Goals for the Next 12 Months
Documenting your short-term financial goals provides a sense of direction and holds you accountable for the things you are trying to achieve. Financial goals don’t always have to be associated with literal dollars and cents. Get creative!
Financial goals can be tied to experiences, such as family vacations, or community challenges, such as gifting to specific organizations, etc. Be proactive in identifying what you want and be equally intentional and specific about creating a game plan for how you will achieve it. Check out this free financial goal setting guide to help guide you in the process.
5. Review Subscriptions, Utilities, and Bills for Reasonableness
We LOVE a subscription! Netflix, Apple, Hulu, Amazon, etc. Although the individual cost of each on its own might be less significant, those incremental charges add up quickly. More often than not, we’ve lost track of what subscriptions we even have! We can have a similar lack of awareness when it comes to recurring utility and miscellaneous bill payments. Is it time to cancel or shop around for a better deal?
As part of your financial planning checklist, I’d suggest checking in here once a year to review what you signed up for in the last year and what you really need going forward.
6. Create a Conscious Annual Spending Plan
The key to a robust financial life is to first understand where your money is going. By building awareness around cash flow, you can create a sustainable plan that lets you spend intentionally today AND save thoughtfully for tomorrow, in alignment with your values and what brings you joy.
7. Review Your Investment Strategy and Asset Allocation
It’s critical to look at what you are invested in and ensure that it aligns with your risk tolerance, time horizon, and long-term financial goals. Do a little research and try to get a better understanding of strategy and purpose. I encourage you to schedule a call and engage with a financial professional to help walk you through your investment allocation, or to create an investment allocation that would be appropriate for you, if you feel at all unsure. Most importantly, you need to understand what you are personally invested in. That is key.
8. Make a Plan to Pay Off Debt
Create a list of your current debts, including the outstanding balances, the terms of the loans, and the corresponding interest rates. Assess if it makes sense to consolidate debt, refinance debt, or accelerate a specific loan payoff. Debt will slowly wreak havoc on your finances and your lifestyle, so it’s important to have a game plan for paying it down. Debt or leverage can be a helpful tool to build wealth, but consumer debt, high-interest debt, and/or debt used irresponsibly, is to be avoided at all costs.
9. Streamline Your Financial Management System
When it comes to your finances, keep it simple. I’ve seen so many people drowning in multiple cards, accounts, and banking relationships. It’s enough to make anyone feel overwhelmed! What you need is a streamlined system that works for YOU and your unique financial circumstances and goals. Consolidate your IRAs and old 401Ks. Reevaluate your current checking accounts. Consider what credit cards make the most sense for you and/or offer the most perks. Commit to just one or two financial institutions to improve the quality and quantity of pricing and offers you receive.
10. Invest in Financial Education
Digital courses, books, podcasts, and 1:1 consultation with a financial professional are just a few of the many ways you can invest in your financial education. Our financial lives are ever-changing, so it’s essential to prioritize improving your financial literacy on an ongoing basis. Invest your time and/or resources to help you optimize and manage your money today, tomorrow, and for years to come. Check out my weekly newsletter, the FinPowered Flex, as a helpful starting point.
Stay Financially Organized and On Track All Year Long
It is imperative that you take the time to intentionally engage in your financial life. You will only benefit by creating goals, assessing and reevaluating financial decisions, and updating financial plans continually throughout your life.
Looking for more to help guide you throughout the year and to help you feel inspired to roll up your sleeves for a little financial DIY? Snag my free annual financial planning checklist outlining six financial tasks to tackle every quarter.
By turning financial planning into a habit, not a chore, you’ll gain confidence you’re making real progress and stay on top of your finances all year long, even when life gets busy!
