TL;DR:
An end-of-year financial planning checklist helps you evaluate your cash reserves, spending, retirement contributions, and charitable opportunities before heading into 2026.
Key takeaways:
- Review your emergency fund to see whether it’s reasonably close to covering 3–6 months of essential expenses.
- Consider maxing out retirement contributions to boost savings and reduce 2025 taxable income.
- Look closely at yearly spending to identify unnecessary costs and high-interest debt.
- Explore charitable giving options that may support causes you value and offer tax benefits if you itemize.
- Work with a fiduciary advisor like The H Group to build a future-focused financial plan.
As 2025 draws to a close and 2026 approaches, it’s a good time to review your finances. You can better understand if your savings, assets, and investments align with your current needs and financial plans for the future.
Not sure where to start? Use this year-end financial checklist as a guide.
Year-End Financial Planning Checklist: Important Areas to Review
Review Your Emergency Fund
Your emergency fund is a relatively simple but especially important asset. It’s a cash reserve that makes it easier to deal with unplanned and important expenses, as the Consumer Financial Protection Bureau explains.
Our suggestion is to check in and make sure your emergency fund aligns with your current expenses and potential needs. While your emergency fund is for unpredictable expenses, the general suggested target is at least three months of basic expenses in cash reserves. In some cases, it may be ideal to aim for closer to six months’ depending on job stability, household needs, and personal comfort level..
Consider Maxing Out Retirement Contributions
Increasing your retirement contributions can help you save more for retirement and potentially reduce your tax liability for the 2025 tax year. If you have the financial room to do so, you may be able to increase your workplace plan contributions in the final weeks of the year to get closer to the annual maximum. For IRAs, you generally have until the tax-filing deadline in 2026 to complete contributions for the 2025 tax year.
- As the IRS explains, the 2025 maximum employee contribution to a 401(k) plan is $23,500. For IRAs (traditional and Roth, combined), the 2025 contribution limit is $7,000 for those under age 50 and $8,000 for those age 50 or older, subject to eligibility rules.
If it’s too late to increase your contributions for 2025, keep this strategy in mind for 2026. It’s worth revisiting each year as one potential way to improve your long-term retirement savings and, in some cases, reduce your current-year tax liability, depending on your situation.
Review The Past Year’s Spending
Checking in on your spending over the past year may not reveal anything surprising or concerning. Or, it may show opportunities to save more, invest more, or put more of your income toward retirement.
Review your monthly credit card and bank statements and read through them. Look for spending that may not be necessary and identify any high-interest debt. With a clear picture of spending and expenses, it’s easier to identify positive changes and decide how to allocate more of your money toward your priorities.
Look for Charitable Giving Opportunities
For those who itemize their taxes, charitable contributions may provide an opportunity to reduce taxable income in 2025 for those who itemize, while also supporting specific causes. Additionally, some nonprofit groups offer end-of-year campaigns and special events, like donation matching. So, giving at the end of the year can increase support for chosen causes. Consult your tax professional regarding your specific circumstances.
Planning for the Future with The H Group
The H Group connects our clients with fiduciary financial advisors who, when providing investment advisory services, have a legal obligation to put clients’ interests first. Our team of advisors can help you work through your end-of-year financial planning checklist and build a comprehensive strategy tailored to your goals and circumstances.
This material is for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Tax laws and contribution limits are subject to change, and their impact can vary based on individual circumstances. Before making any decision that may affect your tax situation, you should consult a qualified tax or legal professional. Investment Advisory services are offered by The H Group, an SEC Registered Investment Advisory firm. Advisory services are only offered where The H Group and its representatives are properly licensed or exempt from licensure.
