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

1. Review Your Financial Goals

Start by taking a look at the goals you set at the beginning of the year. Did you meet them? Are there any goals you still need to work on? Write down any new goals for the upcoming year, like saving for a vacation, paying down debt, or investing more for the future. Make sure your goals are specific, measurable, and realistic.

2. Assess Your Savings and Emergency Fund

An emergency fund is essential for peace of mind. Check how much you have saved for unexpected situations (like medical emergencies or car repairs). Ideally, you should aim to have three to six months’ worth of living expenses in your emergency fund. If you’re short, now’s the time to increase your savings or set a goal to do so next year.

3. Check Your Retirement Contributions

It’s always a good idea to review your retirement savings at the end of the year. Have you been contributing enough to your retirement accounts (like an SSS or Pag-IBIG)? Take advantage of tax-deferred contributions if you can, and consider boosting your savings for the future. The earlier you start, the more your money can grow!

4. Tax Planning

Tax season may seem far off, but now’s the time to get a jump on things. Review your income and expenses for the year and check if there are any tax deductions or credits you can take advantage of. You might want to adjust your withholding or make a few last-minute contributions to tax-deferred accounts to lower your taxable income.

5. Pay Down High-Interest Debt

High-interest debts, like credit cards or loans, can eat away at your finances. Before the year ends, try to pay off as much as you can. Even small payments can make a difference and reduce the amount of interest you’ll pay in the coming months. If you can, avoid taking on any new high-interest debt.

6. Review Your Insurance Policies

Take time to review your insurance policies, including health, life, and property insurance. Have your needs changed this year? Perhaps you’ve had a baby, bought a new house, or experienced a major life change. Make sure your coverage is up to date to protect yourself and your family.

7. Prepare for Big Purchases

Are you planning any major purchases in 2025, like a car, a home, or even a business investment? Start saving for these goals now. Research the costs and make sure you’re financially prepared. It’s always easier to make large purchases when you have a plan in place and some funds saved up.

8. Update Your Estate Plan

Take a moment to review your will and estate plan. Have your assets changed over the year? Did you go through a life event (marriage, divorce, birth of a child)? If so, update your estate plan to reflect these changes. This is especially important if you want to make sure your loved ones are taken care of according to your wishes.

9. Track Your Spending

Before 2025 begins, check how much you’ve spent in the past few months. Are there areas where you could cut back? Tracking your expenses helps you identify areas where you can save more or spend less. Use apps or simple spreadsheets to track your spending habits and plan for a more balanced budget in the new year.

10. Set Your 2025 Budget

Finally, as the new year approaches, create a budget for 2025. Review your current income and expenses, then set realistic limits for savings, spending, and investing. A good budget helps you stay in control of your finances and ensures you’re on track to reach your goals.