Year-end Personal Finance Checklist

Updated on Jun 13, 2017

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With Christmas and New Years behind us, now is a great time to review your finances and make sure everything is in order. You don’t have to spend all weekend balancing your checkbook or number-crunching your budget, but doing a quick check-up of your financial health can help you focused and bring peace of mind as we head into 2017.

Here is a easy financial checklist to help make sure you're on track to meet all your goals in 2017:

Is Your Budget on Autopilot?

  • If you don't operate with a budget yet, now is the perfect time start forming good habits and tracking your spending. Take a look at how you spent your money over the past year, designate a monthly amount for specific categories and stick to it!
  • For those already working with a budget, your finances have probably evolved in one way or another over the past year. The budget you drew up a year or two ago may need a few tweaks to ensure that it is still a custom fit for your lifestyle.
  • If you have a Mint.com account to track your budget and finances, has it been a while since you logged in and made sure that it was updated? Forgetting to do so will put you behind your actual bank account data.
  • While it may only take a few minutes to review your budget, the results might serve you better for many months, and that makes it a wise, worthwhile investment of your time and energy.

Update Your Plastic

  • Check out offers from other card companies and do some comparison shopping. How long have you been carrying around the same credit card? Is it still the best choice based on your current spending patterns and needs?
  • What about the interest rate on your card and the fees charged for balances transfers or cash advances? Analyze the terms and conditions of your card compared to what is available out there and you may discover that you can save a whole lot more money while taking advantage of perks your existing card doesn’t deliver. Take a look at card options your current bank offers and see if you can switch cards.
  • For those trying to pay off credit card debt in the new year, the Chase Slate® is an excellent balance transfer credit card that comes with 0% intro APR for 15 months and no balance transfer fees for the first 60 days!
  • If you're looking for the best credit card rewards, consider applying for the Citi® Double Cash Card or the Discover it® Cashback Match®. These cards come with no annual fee and were two of the most popular cash back credit cards in 2016.

Password Protection

  • One of the simplest things you can do to protect yourself from identity theft is to refresh your passwords on a regular basis, so add that to your to-do list as well. You want to use different passwords for each of your accounts, too, so that if one gets hacked it won’t give the thieves the keys to all of your accounts and financial data.
  • Security experts recommend that your password include both letters of the alphabet and numerical digits and be 12 or 13 characters long. Memorizing a random string of digits can be difficult, so a good way to construct passwords that are strong but easier to remember is to create an actual phrase.
  • An example of a password that is an alphabetical and numerical phrase might be “six times I ate three pizzas” (6XIAte3Pizzas) or “nine eleven year olds jump” (911yroldsjump).

Mortgage Management

  • Interest rates are on the rise, so this might be the year for you to lock in a lower rate through a smart mortgage refinance. Calculate the monthly savings. Then add up all of the refinance fees and closing costs. Divide those total costs by your savings to find out how many months it will take to break even.
  • If you can shave $100 off your current mortgage payment and the closing costs add up to $1,200, for example, then it will take you 12 months to break even. After that you’ll capture net savings of $100 per month for the life of the loan.
  • Also check to see if you are paying a PMI premium, which is a kind of mortgage insurance fee imposed by banks when homeowners have less than 20% equity. If your equity has grown you may no longer be required to pay it, and you can ask to have that fee dropped. That could save around $70 a month on a typical $200,000 mortgage.

Stocks and Bonds

  • If you haven't begin investing yet, let this be the year you start growing your nest egg! Investing be seem overwhelming at first, so consider starting out with low-cost, highly-diversified products like an index fund.
  • Those who own stocks and bonds should definitely review their portfolios to see if they are adequately diversified, especially since interest rates and stocks have risen considerably over the past year.
  • Are the fees you’re paying to have mutual funds managed worth it, or are they undercutting your profits? You may be better off shifting those funds into a less costly Exchange Traded Fund or ETF.

Retirement, Insurance, and Wills

  • An annual review of insurance is a must, because many Americans are either over-insured and paying too much or they are under-insured and exposed to serious liability. Review your policies, talk to your agent, and adjust your coverage as needed. Be sure to ask about potential savings from bundling your policies, too, because those can be substantial.
  • The same goes for your Last Will and Testament. Have you acquired property, divorced, or added some new relatives to your family tree through births and marriages? The document you created some time ago may be a little outdated.

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