Hi Reader!

Goodbye 2025 - Hello 2026!

Just like people set resolutions for health or career goals, having an annual financial ritual can help you close out the year with clarity and step into the new one with confidence. Here are the steps I follow to wrap up my money and reset for a new year:

Check In

• Check your budget against your accounts. Make sure all your outstanding bills are covered and accounted for. The total money you’ve budgeted should match the total money in your spending accounts. This is easier with budgeting apps or software, but you can always do it manually by analyzing your bank and credit card statements for the past year.
• Update your net worth. The end of the year is a great time to write down the balance of every account, even the ones you hardly look at. Investment accounts, spending accounts, debts, assets: you want to track them all. By doing this once a year, you get a clear snapshot of your finances, and you’ll be able to see how your net worth changes over time.
• Make any needed updates. Have you had any life changes that require a new address, name update, or change of beneficiaries? Review your insurance coverage as well.
• Get your free annual credit report. You can request one free credit report per year from each of the three credit agencies without impacting your score. Make sure all the information is correct and that every debt listed is truly yours.

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​Look back

• Review your budget and spending. Compare your actual spending to your planned budget. Where did you overspend or underspend? This will help you identify patterns and make adjustments for the new year.
• Find the average spending for each category. Has it changed over time? How does it compare to last year? These averages give you a strong starting point for next year’s budget.
• Reflect on your progress. Celebrate the financial wins you’ve had over the past 12 months. You’ve come a long way!

Look forward

• Plan for the year ahead. Do you anticipate any major changes or expenses? Adjust your budget categories and automatic contributions accordingly.
• Update your financial goals. Write them down, create an action plan, and set up any necessary automation to help you reach them.

This may seem like a lot, but this once-a-year ritual is a powerful way to reflect on the year that’s ending and welcome the one ahead with confidence. I look forward to it every year.

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​Bonus Tip: If the end of the year feels too hectic, pick any month as your “money wrap-up” month. The process works the same whether your 12-month review is January–December or June–May. I do mine in September and start my fiscal year on October 1. Don’t be afraid to choose a month that works for you—it’s just as satisfying any time of year.

And if you would like to learn more, schedule a FREE Penny for Your Thoughts Q&A Call

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Remember, small change adds up. Step by step and penny by penny, we’re building a better life. Have a shiny day!

Laura

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