At the end of each year, it’s natural to reflect on the past—celebrations, milestones, lessons, challenges—because what you experienced and learned will inform your plans for the future. Thinking back can give you the right information to create a road map for what’s ahead.

This is especially true with your money. What worked? What didn’t? Using the answers to those questions and others we’ll share here, you can help create an actionable financial plan and budget for the next 12 months. This end-of-year financial checklist can help you find success in 2026 and beyond. 

Budgeting is a critical part of financial planning. If you’ve already created a budget, has your spending been on track? And if you don’t have a budget yet, now’s the time to make one.

The first step in updating or creating a budget is to review your spending. Looking at your expenses from the past few months, or even the full year, can help paint a picture of your spending habits. Consider breaking your expenses into categories.

• Fixed expenses

  These are the same month after month. Examples include your rent or mortgage payment, insurance premiums, streaming services, and costs for child care.

• Variable expenses

  These are costs that change from month to month. Examples include things like groceries, clothing, and utilities.

• One-time expenses

  These can be planned or unplanned, but they aren’t regularly occurring. Examples could include things like replacing a broken cellphone, taking a vacation, or repairing your car after a breakdown.

Listing your expenses can help provide a baseline so you can better understand your spending habits, spot overspending, and uncover ways to save more money.

As you work on your budget, be sure to include your debt payoff plan. When it comes to strategies to pay off debt, there are two main schools of thought:

• Prioritize the debt costing you the most in interest (avalanche method) – This typically means paying off the credit card or loan with the highest interest rate first. You may not fully pay off balances as quickly as the snowball method, but it may help you save the most money in the long run.
• Prioritize the smallest balance (snowball method) – Pay off the debt with the smallest balance first, and then move to the next smallest balance. This strategy is geared toward quick wins and may free up cash flow by reducing the number of accounts you have to pay.

You can also make a substantial dent in longer-term debt like a car loan or mortgage if you can afford to make an extra payment or pay more than the monthly minimum.

To help you get started, you can download our budgeting worksheet and enter your planned income and expenses.

If you already use an annual budget, compare what you spent in the last year to what you budgeted. This can also help you identify overspending patterns, such as having too many streaming subscriptions or dining out too frequently. And if you can identify those patterns, you may find opportunities to reduce spending, boost savings, and pay off debt. 

No matter what your dream is for retirement, there may be financial benefits to contributing to an individual retirement account (IRA) or participating in an employer-sponsored retirement plan, such as a 401(k) or 403(b) plan. Consider these retirement savings tips and benefits:

• Lower your taxable income

  By making pretax contributions to a 401(k) or 403(b) plan, you can reduce your taxable income for the year.

• Take advantage of employer matches.

  Many employers match some portion of their employees’ retirement plan contributions. For example, if your employer offers a dollar-for-dollar match on your 401(k) contributions up to 3% of your annual salary, they’ll contribute 3% of your salary to your retirement account as long as you’re contributing at least 3% of your salary.

• Max out annual contributions if you can.

  Super retirement savers may want to ensure they’re maxing out their tax-advantaged accounts every year. Here are the 2025 contribution limits for the two most common types of retirement accounts. Keep in mind that, if you’re contributing to a Roth account, your contributions are taxed upfront:

  • 401(k) – Employees under the age of 50 who participate in 401(k) plans can contribute up to $23,500. Those 50 years and older can use the catch-up limit and contribute up to $31,000 annually.^{Disclosure 1}

  • IRAs – Individuals under 50 years old can contribute up to $7,000 each year, and those 50 and older can contribute $8,000 each year.^{Disclosure 1} The deadline for IRA contributions is the due date of your income tax return.

• Invest your bonus.

  If you receive a quarterly, semiannual, or annual bonus, consider using a percentage of your bonus to max out the annual contribution to your 401(k), 403(b), or other retirement savings account.

• Save the raise.

  Instead of spending the additional income you received from an annual or merit raise, consider putting the additional funds into your retirement account.

One date to keep in mind for tax season is that your individual income tax return needs to be filed by April 15. Those who need more time can file IRS Form 4868 to request an extension to October 15.

Working with a tax professional or financial advisor can help ensure you meet filing deadlines, make the most of deductions, and understand any varying or uncommon requirements for your situation. 

The Internal Revenue Code allows deductions and credits for certain expenses. Get a head start on gathering documentation for these expenses. 

Your charitable donations may make a difference if you’re itemizing your deductions.

How do you know if your donation is tax deductible? You may be able to claim a deduction for a charitable contribution to a qualifying organization (such as a nonprofit or religious organization). Generally, to claim a charitable deduction, you should keep a record of your contribution. A financial advisor can help you determine if any additional documentation is required.

If your medical and dental expenses exceed 7.5% of your adjusted gross income for the year, you may be able to deduct the excess amount for yourself and your family. These expenses may include amounts paid for:

• Doctors, dentists, or surgeons
• Inpatient hospital care
• Prescription drugs

Self-employed individuals may also qualify for a health insurance deduction.

There are two education-related tax credits available for qualifying taxpayers. The first is the American Opportunity Tax Credit (AOTC), which offers a maximum credit of $2,500 per eligible student. The second is the Lifetime Learning Credit (LLC), which is worth up to $2,000 per tax return.^{Disclosure 3} Visit the IRS website or reach out to a tax professional or financial advisor for details about qualifications for education-related credits. 

A flexible spending account (FSA) allows employees to contribute a set amount through payroll deductions to be used for healthcare costs. For 2025, the FSA contribution limit for the year was $3,300 per employee.^{Disclosure 4}

FSA contributions lower your taxable income—but they’re usually “use it or lose it” funds, which means it’s important to use your FSA funds by December 31. Some employers may allow up to $660 of unused funds to be rolled over for the next year.^{Disclosure 4} Other employers may provide a grace period of up to two and a half months past the end of the plan year.

You can use your FSA funds for:

• Eligible medical, dental, and related expenses – These can include doctor, dentist, and optometrist visits; co-payments, hospital fees, and surgical fees; prescription drugs; eyeglasses or contact lenses; testing and diagnostic services; and mental health care such as talk therapy.
• Purchasing health-related items – Examples may include wellness products, over-the-counter medications, and medical equipment such as crutches and bandages. 

When an unexpected event occurs, like a job loss, sudden car repair, or medical bill, having the means to cover expenses is vital to help protect your finances—and your peace of mind. This is the rationale behind having an emergency savings fund.

Where should you start? You can open a savings account specifically for your emergency fund and start making small deposits. Aim to save $1,000 first, but keep the momentum going until you eventually have three to six months of living expenses in your fund. Making regular contributions can go a long way in helping you feel financially confident. 

As you go through this checklist, lean on the expertise of financial professionals—like an accountant, financial advisor, insurance agent, or attorney—who can help guide your journey with personalized advice and direction.

• Accountant – As you start prepping for tax season, an accountant can help you navigate your specific financial situation.
• Financial advisor – When you’re reviewing your retirement savings progress, a financial advisor can be a great source for guidance.
• Insurance agent – Are you properly covered and paying a fair amount for your insurance needs? If you’re overinsured or underinsured, a trustworthy agent can help you make the necessary adjustments.
• Attorney – An attorney can be crucial as you go through major life events like buying a home or executing a will. An attorney can also be great to have if you’re a small business owner.