It’s a new year — a perfect moment to perform a new year money checkup.
Whether you’ve already set goals for the year or simply want to improve on last year, this financial checkup helps you spot areas to improve and make better money choices going forward.
Think of this checkup as a practical to-do list. You don’t need to complete every item, but the list offers ideas you might otherwise forget and prompts changes that can strengthen your financial future.
Conducting a financial checkup at the start of the year is natural: it’s an ideal time to set goals and plan ahead. I personally run through a financial checklist at least once a year, usually around the new year because it’s easy to remember. However, you can perform this review any time — just aim for at least one full checkup each year.
If you’re facing a major life change — starting a family, buying a home, changing jobs — consider reviewing these items more often. Checking your financial picture before big decisions helps you identify areas to improve and build a plan.
Not every item below will apply to everyone, but this list is a strong starting point to motivate you to take control of your money this year.
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Here are 18 things to do during your new year money checkup:
What is a financial checkup? Why is a financial checkup important?
A financial checkup is like a physical exam for your money. You review different parts of your financial life to evaluate where you stand, track progress toward goals, and uncover things you may be overlooking.
It’s a straightforward checklist of tasks — some small, some large — designed to improve your financial health over time.
Below are 18 practical steps to include in your new year money checkup.
1. Review your budget
When did you last review your budget? The start of the year is an excellent time to reassess. Consider whether you need to:
- Update income or expense estimates
- Re-evaluate discretionary spending
- Adjust your budget so it’s realistic and working for you
If you don’t have a budget or need help building one, look for a complete budgeting guide that shows how to create a plan that works.
2. Make sure you’re signed up for your company’s 401(k) match
If your employer offers a 401(k) match, enroll and contribute enough to capture the full match — it’s essentially free money and one of the best boosts to your retirement savings. Employer matches vary, so check your human resources resources to learn the details and enroll if you haven’t already.
3. Begin compiling your tax return documents
Tax season comes quickly. Start gathering documents now to avoid last-minute stress and reduce the chance of missing deductions or credits you’re entitled to.
4. Find life insurance
If you don’t have life insurance, consider adding it to your financial plan. Life insurance provides a safety net for family expenses like funeral costs, daily bills, and outstanding debts. For many households, a reasonably priced term policy offers strong value and peace of mind.
5. Read your free credit report
Review your credit report at least once a year from each of the three major bureaus. Spacing requests throughout the year helps you monitor for errors or fraud and gives insight into what’s affecting your credit file.
6. Shop around for more affordable insurance
Many people overpay for auto and home insurance. Comparing rates could save you hundreds or even thousands annually while improving coverage. Shopping around is often quick and can lead to substantial savings.
7. Have a money meeting
Use the new year as a prompt to hold a money meeting with your partner or household. Discuss topics like an annual financial checkup, debt reduction strategies, family budget, retirement progress, upcoming major expenses, vacations, and any financial challenges you may be facing. Regular, open conversations help keep everyone aligned.
8. Start an emergency fund
If you don’t already have one, begin building an emergency fund. Even a small starter balance helps cover unexpected events like job loss, car repairs, or medical bills. Keep this money in a high-yield savings account separate from checking so it’s accessible but not tempting to spend.
9. Start investing
Investing enables long-term goals such as retirement and financial security. Even modest, consistent contributions can grow significantly over decades thanks to compound returns. If you haven’t started investing, open a retirement account or brokerage account and begin with what you can afford.
10. Figure out what’s impacting your credit score
Beyond reading your credit report, identify factors that affect your credit score and take action to improve it: pay bills on time, monitor reports regularly, and keep balances low compared to credit limits. A strong credit score can lower borrowing costs and improve financial opportunities.
11. Get rid of your expensive TV bill
Cable subscriptions can be a large, recurring expense. Consider cutting costly cable plans and using streaming services or other alternatives to reduce your monthly entertainment costs without sacrificing what you enjoy.
12. Start tracking your money
Begin tracking income, spending, savings, and investments in one place. Free personal finance tools can connect many accounts, giving a clearer picture of cash flow and progress toward goals. Seeing everything together makes managing finances easier and more effective.
13. Assess your debt
Review all debt — mortgage, student loans, credit cards, and other loans — and create a plan to tackle high-interest debt first. Reducing high-interest balances frees up money for savings and investments and reduces long-term costs.
14. Go on a cheap vacation with travel rewards credit cards
If you already use credit cards responsibly, consider travel rewards cards to earn points toward flights, hotels, or statement credits. When used wisely and paid off in full each month, rewards cards can reduce travel costs significantly.
15. Find an online job
If you want extra income, explore online job or side-hustle options. Additional income can accelerate debt repayment, fund an emergency savings account, or help you invest more. Many legitimate remote work and freelance options exist across varying skill sets.
16. Start an emergency binder
Create an emergency binder containing essential financial details: account numbers, passwords (or password manager instructions), insurance policies, contact information, and important documents. A well-organized binder makes it easier for family members to manage affairs if you’re suddenly unavailable and helps you find key information quickly.
17. Update your will
Review and update estate documents annually or after major life events such as the birth of a child, marriage, divorce, or changes in assets. Keeping your will and beneficiary designations up to date ensures your intentions are honored.
18. Set goals for the new year
Finally, define clear financial goals for the year and beyond. Visualize what you want to achieve by year’s end and plan for five- or ten-year objectives. Examples include paying off student loans, maxing out retirement contributions, starting a side business, buying a home, or saving for a family. Concrete goals guide your budgeting and decision-making throughout the year.
What should I do with my money this year?
There are many actionable steps you can take. Choose the priorities that matter most to your situation and long-term plans. Whether you aim to change careers, travel, donate more, pay down debt, or build savings, your financial choices are personal. Focus on what aligns with your values and goals.
What’s on your new year money checkup?