Year-end financial checklist: 9 personal finance tips for 2024

by - Mark Ward

artist - Daisy Lopez

As 2023 comes to a close, you and your family reflect on where you’ve been and where you’d like to go.

As the year wraps up, it’s natural to think about your goals — professionally, personally, and financially. It’s something that you and your household will want to assess and talk about openly and honestly.

Financially speaking, perhaps you built up your emergency fund or finally paid off that credit card bill that’s been haunting you since your college years. If so, congratulations. Or perhaps you went off course a little when you did a little too much online shopping. If so, you’re not alone.

Whatever the case, you’re ready to head into the new year with some new financial goals. However, before you flip the calendar to a new year, there are some things to check off your to-do list before saying goodbye to this year.

Doing so will help ease your mind and allow you to focus on the year ahead.

Review or update your beneficiary designations

Make any needed updates to the beneficiary portion of your bank accounts, retirement accounts, life insurance policies, and annuities. 

Have you gotten married or had a child within the last 12 months? Or perhaps a loved one has exited your life through a divorce or a death. Choosing a beneficiary for your life insurance policy is a decision you should consider carefully. This is important because beneficiaries trump who’s named in a will.

To help you keep track of your beneficiaries, write down their names along with the date when any updates were made. Also, be sure to name a contingent beneficiary in case your primary beneficiary passes away. Your beneficiaries can be a person, a charity, or a nonprofit organization — or a combination of all three. Store this document in an easy-to-access spot and review it annually.

Review tax withholdings

Review your tax withholdings and payments. Big events in the last year — such as marriage, divorce, or having a child — are good reasons to adjust your withholding.

Review your insurance needs

Health insurance, life insurance, homeowners insurance, and auto insurance — oh my!

The types of insurance you can have seem endless. It’s important to reevaluate your insurance policies regularly — to make sure you’re properly insured and are not paying too much for them.

Review your portfolio and diversify if need be

Take a close look at your investments.

We saw how quickly the world changed when the pandemic began. So, too, can your life situation. Make sure your financial strategy still fits you. Did you recently inherit some money? Or perhaps your job is less secure than it was last year. As your life changes, your investments and financial portfolio might need another review and alterations.

Meet with your financial professional to see how changes in your life may have impacted your overall financial portfolio.

For instance, stocks and bonds in your investment portfolio should be appropriate for your age and how well you tolerate risk.

Your portfolio should reflect investment objectives that are appropriate for your current life stage. Your age, risk tolerance, tax status and time horizon, among other factors, are all important. Speak with a financial professional regarding your personal situation.

Spend eligible flex dollars

A healthcare flexible spending account (FSA) can save you money — as long as you spend the pre-tax dollars before the end of the year. Otherwise you run the risk of losing it.

Check in on your emergency savings account

In an ideal world, you’d have three to six months’ worth of emergency savings set aside.

However, we don’t live in an ideal world, which makes it difficult for some heads of households to care for their family’s everyday needs. However, it’s important that you don’t fall into the camp of the 56 percent of Americans who don’t have the cash to cover an unexpected $1,000 bill.1

Remember that an unexpected emergency, such as a car repair or a medical expense, could set you back financially. To help ensure that doesn’t happen, build up your savings by automatically depositing some money from your paycheck to a dedicated savings account.

If you have kids, contribute to their college fund

College tuition isn’t for the faint of heart. But having a tax-advantaged strategy in place can help you prepare for the rising costs. If you already have one, try to contribute as much as you can.

As you’re preparing your child (or children) for their upcoming education, whether it’s elementary, high school or college, there are many different types of vehicles that could help you reach your goals. Speak to a financial professional to explore the possibilities and to see what would be a good fit for your specific situation. 

Make charitable donations

In 2021, for example, people — along with foundations, corporations, and bequests — gave an estimated $484.85 billion to U.S. charities.2 Before the year ends, donate to an organization that’s close to your heart. The benefits are two-fold: You will reduce your taxable income and feel good about giving some of your hard-earned dollars to a good cause. It’s a win-win.

Start preparing for the future and future memories

The new year starts as quickly as the last one ends. So be sure to set some new goals and write them down. Do you want to create an estate plan or simply save some money for your teen’s braces? Or you might be expecting some big changes that will affect your finances — such as having a baby or changing your career. Create goals with these anticipated changes in mind.

If it’s realistic, your financial checklist should include a savings strategy for a family vacation or another memorable event. It’s nice to have something to look forward to, even if that something will occur sometime way in the future. It’ll keep your eye on the prize.

You can open a dedicated savings account and set up an automatic transfer of funds to get you closer to your destination. And don’t minimize how effective dropping your loose change into a jar can be.

You’re now on your way to moving forward with your future. 

Mark A. Ward

V.P., Operations & Chairman IPC

1. Blacklock, Amy; Cook, Vicki. “Financial review and planning checklist,” Women Who Money, Updated July 11, 2022.

2. “Giving USA: Total U.S. charitable giving remained strong in 2021, reaching $484.85 billion,” Lilly Family School of Philanthropy, June 21, 2022.