Five Points Bank Blog

Year-End Financial Checklist: Are You Ready for 2025?

As 2024 winds down, it’s the perfect time to review your finances and prepare for the year ahead. A little planning now can set you up for financial success in 2025. Use this checklist to ensure you’re on track, maximize your tax benefits, and set meaningful goals.

1. Review Your Budget and Spending

Take a close look at your budget and spending habits over the past year. Identify areas where you excelled and where you might improve. Consider:

• Did you stick to your budget?
• Were there any unexpected expenses?
• Are there opportunities to save more?

Adjust your budget for 2025 based on what you’ve learned.

2. Evaluate Your Savings Goals

Check your progress on savings goals, whether it’s an emergency fund, a vacation fund, or a long-term savings account. If you fell short, determine why and set realistic targets for 2025. If you exceeded your goals, consider how to invest or allocate the extra funds.

3. Maximize Tax Benefits

The end of the year is a critical time to reduce your taxable income. Some steps to consider include:

• Contributing to Retirement Accounts: Max out your 401(k) or IRA contributions if you haven’t already.
• Charitable Giving: Donations to qualified charities are tax-deductible.
• Tax-Loss Harvesting: Offset gains by selling underperforming investments.
• Using Flexible Spending Accounts (FSA): Spend remaining balances on eligible expenses.

Consult a tax professional to ensure you’re taking full advantage of deductions and credits.

4. Check Your Credit Report and Score

Your credit score impacts your ability to secure loans and favorable interest rates. Request a free credit report from one of the major credit bureaus and check for errors or fraudulent activity. Address any issues promptly.

5. Review Insurance Policies

Ensure your insurance coverage meets your needs. This includes health, home, auto, and life insurance policies. Evaluate whether your coverage is adequate or if you need adjustments for 2025.

6. Plan for Debt Repayment

If you’re carrying debt, create or refine a repayment plan. Focus on high-interest debt first while maintaining minimum payments on other accounts. Explore refinancing or consolidation options to lower your interest rates.

7. Set Financial Goals for 2025

Define what you want to achieve financially in the upcoming year. Goals could include:

• Saving for a down payment on a house
• Paying off a specific debt
• Increasing your retirement contributions
• Building a stronger emergency fund

Set measurable and attainable targets, and outline steps to reach them.

8. Automate Your Finances

Make your financial life easier by automating savings, bill payments, and investments. This reduces the risk of missed payments and helps you stay consistent with your goals.

9. Meet with a Financial Advisor

Consider scheduling a year-end review with a financial advisor. They can provide tailored advice to optimize your finances and guide you through any changes in tax laws or market conditions.

10. Partner with Five Points Bank

At Five Points Bank, we’re here to help you achieve your financial goals. Whether you’re opening a savings account, planning for retirement, or looking for tools to manage your finances, we’ve got you covered. Visit your nearest branch or contact us today to see how we can assist you in preparing for a prosperous 2025.

Taking these steps now can give you peace of mind and a head start on a successful financial year. Let’s make 2025 your best year yet!