As the year comes to a close, it’s the perfect time to pause, review your financial picture, and set yourself up for a strong start to the year ahead. Whether your goals include increasing savings, reducing debt, or investing more strategically, a few intentional steps now can lay the foundation for long-term financial health.
Here are our top year-end saving tips—and how to prepare for a more confident and financially organized new year.
1. Revisit Your Budget and Cash Flow
Wrapping up the year is an ideal moment to review how your money was spent.
Ask yourself:
- Did your spending align with your goals?
- Were there unexpected expenses that threw you off track?
- Are there recurring expenses you can eliminate or reduce?
A clean budget review helps you make strategic adjustments for next year and frees up funds that can be redirected toward savings or investments.
2. Max Out Retirement Contributions (If You Can)
Take advantage of tax-advantaged retirement accounts before year-end deadlines.
Consider:
- Contributing the maximum to your 401(k)—especially if you haven’t reached your employer match.
- Funding your IRA or Roth IRA (you have until Tax Day, but planning ahead helps).
- Reviewing catch-up contributions if you’re age 50 or older.
These contributions not only boost your long-term savings but may also lower your taxable income.
3. Review Tax-Loss Harvesting Opportunities
If you have investments in taxable accounts, talk with your financial advisor about whether tax-loss harvesting is appropriate for you. CWG is already doing a lot of this behind the scenes!
By selling investments that have declined in value, you may be able to offset capital gains and reduce your tax liability—while strategically rebalancing your portfolio.
4. Use Remaining FSA Funds
Many Flexible Spending Accounts have “use it or lose it" rules. Take time to:
- Schedule medical appointments
- Order eligible supplies
- Review allowable categories with your plan provider
This ensures you don’t leave money on the table.
5. Rebalance Your Investment Portfolio
Market movements over the year can shift your asset allocation away from your intended strategy.
A year-end portfolio review helps you:
- Realign with your risk tolerance
- Ensure long-term goals remain on track
- Lock in gains and redistribute where needed
6. Pay Down High-Interest Debt
High-interest debt—especially credit cards—can slow any financial progress. Even a small year-end lump-sum payment can save interest and free up cash flow for the year ahead.
If debt is a major focus for the new year, consider:
- Consolidation strategies
- Refinancing options
- A dedicated payoff plan
7. Build or Boost Your Emergency Fund
If the past year taught us anything, it’s that financial stability depends on being prepared.
Aim for 3–6 months of essential expenses in an easily accessible savings account. If you already have that, consider utilizing a high-yield savings account as another "bucket" in your savings plan.
8. Set Clear Financial Goals for the New Year
Your goals should be specific, measurable, and realistic. Examples include:
- “Save an extra $5,000 toward my emergency fund.”
- “Increase my retirement contribution by 2%.”
- “Eliminate one high-interest debt by June.”
- “Meet with my advisor twice a year instead of once.”
Write your goals down and revisit them quarterly.
9. Organize Your Financial Documents
Before the new year arrives:
- Gather tax documents
- Review insurance policies
- Update beneficiaries
- Store all records securely (digitally or physically)
- Create or update Estate Planning documents
Good organization reduces stress and streamlines your financial life.
10. Review Your Financial Plan
Don't have one? Now is the time to schedule with Colorado Wealth Group. Click "Reserve a Consult" on our website and meet with an advisor to discuss your financial future.
