With the end of the year approaching, doing a review of your finances before the New Year arrives will set you up for success. Not only should you be preparing your finances for 2026, but you should also be taking advantage of yearly contribution limits, tax credits, and time-limited flexible spending accounts.

From paying down debt, to maxing out your Roth IRA contributions, to checking in on your emergency fund, here’s what you should have on your end-of-year financial checklist for 2025.

#Your end-of-year financial checklist

While your personal financial checklist will depend on your own financial needs and habits, this end-of-year financial list gives a general overview of what you need to check on before the end of the year. Feel free to modify it by adding or removing items so that it works best for you and your household.

• Budgeting and spending
• Debt
• Emergency fund
• Retirement
• Flexible spending accounts
• 529s
• Taxes
• Credit score
• Insurance
• Investments
• Mortgage and escrow
• Miscellaneous
• Review and plan for 2026

#Budgeting and spending

Your first and biggest checklist item will be to review your budget. The previous year’s budget will give you an idea as to what your yearly spending is, what you can forecast into the next year, and what you need to adjust for the next year.

Analyze your spending over the last year and see if it’s in line with your goals. If you’re spending more than you’re saving, now is the time to set limits and rein in your expenses. If you’re not meeting your financial goals, then take a step back and see where you can adjust.

It’s also a good idea to see how your budget is organized and what categories you have set. See if you need to add a new category or recurring expenses, such as pet expenses or a vacation fund if you’re planning a big trip.

#Key questions to ask yourself:

• Are my spending and saving where I want it to be?
• Do I need to adjust my budgeting strategy or the categories I’m using?
• Where can I adjust my spending and saving to further my financial goals?

#Debt

Take the time to review your debt balance, how much you’re paying, and when you can expect to pay off your debt.

Review your debt repayment strategy. If you have multiple debts you’re paying off, consider using payoff techniques such as the snowball or avalanche strategy to pay off high-interest debt quickly and use your payments for maximum impact.

Finally, if you’re close to payoff, consider paying down debt before the end of the year. This way you can start the new year with a fresh slate and save money on interest.

#Key questions to ask yourself:

• How does my debt payoff map look, and is it where I want it to be?
• What can I do to save on interest?
• Which debt should I prioritize paying down next year?

#Emergency fund

According to a 2025 Bankrate survey, 60% of Americans are uncomfortable with how much they have in their emergency fund. The end of the year is a great time to review how much you have saved up.

As a rule of thumb, you should have three to six months of essential costs, including your housing payment, taxes, utilities, and groceries, saved in your emergency fund. However, with some economists predicting a labor and economic slowdown in 2026, you may want to adjust your emergency fund goal to account for a longer period of unemployment, such as six to nine months.

#Key questions to ask yourself:

• Is my emergency fund where I want it to be?
• Do I need to adjust my emergency fund to account for increased expenses or economic turmoil?
• Am I getting the best interest rate on the account I’m keeping my emergency fund in?

#Retirement

With approximately 40% of Americans having no retirement savings in place, according to a 2025 poll by Gallup, reviewing your retirement savings each year is vital.

As a benchmark, you should aim to have one times your annual salary by the age of 30, three times by age 40 and approximately six times by the age of 50. If you find yourself falling behind those numbers, you need to up your contributions.

It’s also a good idea to check in on any old accounts that you may need to roll over if you’ve switched employers. Old 401k accounts can rack up monthly administrator fees.

Finally, make sure to maximize the contributions you can make on your traditional and Roth IRAs. For 2025, the Roth IRA contribution limits are $7,000 if you're under 50 and $8,000 if over 50.

#Key questions to ask yourself:

• Are my retirement goals where they should be?
• Am I maximizing my contributions with any employer bonuses and contribution limits?
• Do I want to adjust my investments?
• Do I have any old accounts I need to roll over?

#Flexible spending accounts

Flexible spending accounts (FSAs) can be summed up in five words: Use it or lose it. While FSAs can be a helpful, tax-advantaged way to save money for healthcare and dependent care, if you don’t spend the funds on approved purchases, then you risk forfeiting money when the end of the year hits.

Check in on your FSAs and see if you have a balance. While some FSAs have a grace period for withdrawals that can extend into the next year, you’ll only be able to get reimbursements for any expenses incurred in the covered year.

#Key questions to ask yourself:

• Have I used up all my funds in my FSA?
• Am I contributing an amount that reflects my needs?
• How much do I plan to withdraw from my FSA next year?

#529s

If you have any savings/investment accounts for education, the end of the year is a good time to check in on your progress and your contributions. For 529s, you can adjust your investments up to two times a year without incurring a penalty. Depending on how the market is operating, you may want to change from conservative to aggressive investments (or vice versa).

Don’t forget to keep your contributions below the gift tax threshold of $19,000 per person, per beneficiary for the year of 2025. Otherwise, you’ll have to pay a gift tax to the IRS.

#Key questions to ask yourself:

• Are my 529 savings where I want them to be?
• Am I using the best investment strategy for the current market?
• Do I have any cash I need to contribute?

#Taxes

Don’t wait until April to start preparing for your taxes. Getting already ahead of time helps you avoid the last-minute scramble.

If you’re paying taxes this year, make sure you have enough set aside for the payment, and that you know your payment deadlines. Certain business taxes have different deadlines than personal taxes, so stay aware of when you need to pay.

If you have a CPA, check in with them and ask what they’ll need from you ahead of time. This can save you time when tax season hits and give you a chance to gather the necessary receipts and paperwork. You should also see what deductions you may qualify for in the new year, and take steps to maximize which credits and deductions you qualify for.

#Key questions to ask yourself:

• How much taxes do I expect to pay (or get refunded) this year?
• What deductions do I plan on taking, and what paperwork do I need?
• How can I strategize effectively to maximize my deductions next year?

#Credit score

If you haven’t already, now is the time to request your credit score. You can request one report from each of the three credit reporting agencies at annualcreditreport.com. Ideally, your score should be in the Very Good (740 to 799) to Exceptional (800+) range.

If your credit falls below this, then you’ll want to make some improvements based on your history such as paying down debt, or disputing any false entries on your report.

#Key questions to ask yourself:

• Can my credit score be improved in the next year?
• Where are my weakest areas in my credit score?
• What is my credit mix looking like?

#Insurance

With health, car, and home insurance rates increasing across the board, the end of the year is the ideal time to check in on your current insurance and make adjustments to your coverage and your budget.

Look to see how much your rates are increasing, and, if possible, shop around for a better deal. Some firms will offer deals if you bundle services, or will offer price-matching.

Finally, check in on how your coverage might be changing. Insurers will notify you of which providers they are adding or dropping in the year ahead, as well what services may no longer be covered.

#Key questions to ask yourself:

• How much will my insurance cost this year, and do I have enough budgeted to account for that?
• Can I get a better deal on insurance elsewhere?
• Does my insurance reflect the coverage I need?

#Investments

Besides your retirement accounts, it’s a good idea to review your personal investment accounts. Even if you only have a bit of Bitcoin and some stocks on Robinhood, reviewing your investments can pay dividends later down the line.

Review your investments and see that they’re sufficiently diversified and making a good baseline return. Most experts classify this as 10% to 12% year over year, though this will vary depending on your goals.

Any investment firms or platforms you’re working with will provide year-end tax information, which you should review to see if you need to pay any taxes on capital gains or dividends you received. You should also reconcile your capital gains with your losses, which can come with tax advantages if you lost more than you gained, which is known as tax loss harvesting.

#Key questions to ask yourself:

• What are my investment goals for the year?
• Am I staying in line with my investment strategy?
• Are there any capital gains or dividends I need to report?
• Are there any changes I want to make in my portfolio to help diversify or maximize efficiency?

#Mortgage and escrow

Reviewing your mortgage at the end of the year can help you save on interest and avoid any nasty surprises in the year ahead. In particular, you’ll want to check in on your escrow. With property taxes and insurance increasing for many, your escrow will likely face a shortage for the year ahead.

In this case, you have a couple of choices: Pay your escrow shortage up front and keep your mortgage payment the same, or increase your monthly payment to make up for the shortage. Either way, you’ll want to make sure your escrow is in good shape, or have to deal with last-minute or late payments on your taxes and insurance.

With interest rates dropping, you may also want to see if a refinance is in your future. Refinancing can save you thousands in interest over the year if you get a lower rate. Keep in mind that you’ll likely have to pay closing costs of 2% to 6% of the mortgage total if you refinance, so if you’re planning on it this year, set aside some cash for the fees.

#Key questions to ask yourself:

• Is it worth it to refinance?
• Do I have enough in my escrow for the year?
• Can I make extra contributions to my mortgage payments and save on interest?

#Miscellaneous

As you finish your 2025 financial year in review, make sure to wrap up any other potential loose ends you may have in your accounts, including:

• Reviewing old bills and expense accounts. Old medical bills and toll bills have a tendency of lurking around and hurting your credit score if you don’t pay them off.
• Reviewing payment accounts for cash balances. Finding $20 in your Venmo account is always a nice surprise.
• Review bonds getting close to their maturation date. Make sure you have an account to receive the funds. If the bond is physical, you can cash it at a bank or credit union.
• Review your charitable contributions. Not only is it good to give back, but you can get a tax deduction on both money and items you donate to qualified entities before the end-of-year deadline.
• See if there are any subscriptions or recurring expenses you can drop. If you haven’t logged into Hulu since June, it might be time to give it a rest.
• Maximize the contribution you can make on your health savings account (HSA). For 2025, the limits are $4,300 for self coverage and $8,550 for family coverage, with individuals over 55 not enrolled in Medicaid qualifying for an additional $1,000 catch-up.

#Review and plan for 2026

When your year in review is done, it’s time to set new goals for yourself in the new year. Financial goals give you something to work toward, whether it’s paying down a debt, saving for a vacation, or bulking your emergency fund. When setting a goal, give yourself a timeline, a benchmark you want to hit, and a monthly contribution or number you want to reach.

You should also plan ahead for adjusted changes in spending and income, including any raises, bonuses, job loss, or increased expenses from inflation that you expect for the year, as well as any big-ticket expenses you foresee.

#Key questions to ask yourself:

• What are my plans for 2026, and how do I plan on achieving them?
• What big expenses do I have coming up, and am I prepared for them?
• Have I adjusted for changes in expenses and income in the upcoming year?

Having a plan as you tackle the new year will help you achieve your goals in the long run. As 2025 draws to a close, take the time to review your budget, learn from your losses, celebrate your wins, and make the new year a financially successful one.

#FAQs

What financial records should I organize at year end?
Get together your credit card statements, your income statements, bank statements, mortgage statements, current debt balance, investment summaries, and your insurance bills, as well as your overall budget and spending summary for the year. Ideally, you should be keeping track of this throughout the year, and simply reconciling your costs with what you have on paper.

How can I reduce my tax bill before the end of the year?
Maximize contributions to your retirement, flexible spending and health savings accounts, which will reduce your pre-tax income. Maximize your charitable contributions, of which you can deduct 60% of your pre-tax income. Optimize your investments by cashing out investments to offset any capital gains you’ve made.

What are the most important end of year financial moves to make?
Take advantage of anything that expires before the end of the year. Max out any retirement contributions, especially if they’re employer-matched. Use up any FSA funds you have before they’re forfeited. Maximize your tax-advantaged deductions, and adjust your investment portfolios for 529s and other investment accounts. Finally, give yourself a financial checkup and make sure you’re on track with saving, spending, and debt payments.

How can I financially prepare for the end of the year?
Review your budget and spending, gather your receipts and paperwork for tax season, review your investment portfolio, maximize yearly tax-advantaged accounts and deductibles, and plan out your financial goals for the next year.

Why is a year end financial review important?
Reviewing your finances at the end of the year can help you get a pulse on your overall financial health. By reviewing your savings, spending, debts, and investments, and by maximizing how much you’re getting out of your investment and FSA accounts, you can set yourself up for success to stay on track for your financial goals and handle your finances into the new year.