Year-End Financial Planning: 6 Smart Moves Before December 31

The end of the year is the perfect time to take control of your finances. A few proactive steps now can help you save money, reduce stress, and start 2026 strong. Here’s what to focus on:

1. Review Your Budget

Look back at your spending habits. Did you stick to your plan? Identify areas where you overspent and set realistic goals for next year. Consider using a budgeting app or setting up automatic transfers to savings for 2026.

2. Maximize Retirement Contributions

If you have a 401(k) or IRA, check your contribution limits. For 2025, the 401(k) limit is $23,000 (plus catch-up contributions if you’re 50+). Adding even a little extra before December 31 can reduce your taxable income and grow your retirement fund.

3. Use Flexible Spending Account (FSA) Funds

If you have an FSA, make sure to use any remaining funds before they expire. Eligible expenses include medical, dental, and vision costs. Check your plan for deadlines—some allow a short grace period, others don’t.

4. Make Charitable Donations

Donating to charity before year-end can help those in need and may qualify for a tax deduction. Keep receipts and consider supporting local organizations to make an impact close to home.

5. Review Investments and Taxes

Talk to your financial advisor about strategies like tax-loss harvesting to offset gains. Also, check if you need to make estimated tax payments to avoid penalties. A quick review now can prevent surprises in April.

6. Set Financial Goals for Next Year

Think ahead: Do you want to pay down debt, save for a home, or build an emergency fund? Write down your goals and create a plan. Even small steps—like automating savings—can make a big difference.


Our team at The Bank of New Glarus is here to guide you. Stop by or call us today to make the most of your year-end opportunities.