The End-of-Year Money Checklist Every Middle-Class Family Should Do, According to a Financial Planner
The end of the year is a busy time for every middle-class family. There’s preparing for the holidays, protecting your children against the negativity of the season, and preparing for the financial challenges and opportunities of the new year. But getting everything in order financially can feel like another source of stress; especially if you’re not sure where to start.
A simple checklist can help. After all, you use lists to manage everything in your home. grocery shopping to chores to get everyone to their events on time. Why not use one? Get your financial affairs in order as we enter the new year?
To find out which items deserve a place on the year-end money checklist, GOBankingRates turned to: Connor Bausermana financial planner Preferred Financial Group.
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If a large part holiday spending Although it is already behind most families, the end of the year is still the right time to assess the damage and prevent it from recurring next year.
Bauserman said one of the most common mistakes he sees is overspending during the holidays without a clear plan.
“If you don’t go into Christmas with a budget, things can quickly get out of control,” he said.
Holiday promotions, from Black Friday and Cyber Monday to weekly seasonal deals, can create pressure to spend more than planned, especially when purchases are justified as “too good to pass up,” he said.
Now is the time to review December spending, pay off any balance possible, and create a simple savings plan for next year’s holidays. Bauserman recommends setting aside a small amount each month.
the average family spends about $1,600 on holidaysand when that expense occurs all at once, it usually comes to a credit card or directly from savings. Spreading that cost by saving about $134 a month could make the season much less financially stressful, Bauserman said.
One of the easiest year-end improvements families can make is to automate their finances as much as possible, especially saving and investing.
“This allows you to prioritize saving over spending,” Bauserman said. “It also allows families to save for things like vacations throughout the year, which is helpful regardless of income.”
When automatic transfers are applied – whether high yield savings account, brokerage account or retirement plan – Your financial goals are being worked on in the background even if you are not actively thinking about them.
