Smart Financial Moves to Make Before the Year Ends

As the year draws to a close, many of us find ourselves reflecting on what we’ve accomplished, what surprised us, and what we hope to change in the 2026 year ahead. The holiday season may bring busy schedules and festive distractions, but it also offers one of the best opportunities to reset, prepare, and enter the new year with clarity and confidence.

Whether you’ve hit your financial goals or felt pulled off track, the final weeks of the year are a natural time to regroup and make thoughtful decisions that will support your long-term financial health. A few small, strategic moves now can save you time, money, and stress later.

Here are several year-end steps worth considering.

1. Reflect On The Year (Without Judgment)

Before reviewing your accounts or adjusting strategies, pause to reflect on the broader picture. What were your biggest financial wins this year? What challenges did you face? Did you navigate unexpected expenses, change jobs, receive a bonus, or reach a savings goal? 

This reflection isn’t about perfection; it’s about perspective. Understanding where you’ve been helps you set more realistic, meaningful goals for 2026. Some questions to ask yourself:

→ What worked well for you in 2025?: Did you automate savings, pay off a lot of debt, or stick to a new habit like tracking spending or contributing regularly to a retirement plan?

→ What felt stressful or unsustainable?: Maybe your monthly cash flow felt tight, big, irregular expenses kept catching you off guard, or you found yourself relying on credit cards.

→ What changed in your life?: Think about major events: a move, new job, marriage, new child, health changes, or shifts in income. These have a direct impact on your financial picture.

→ How did your finances support (or conflict with) your values? Did your spending align with what matters most to you: family, flexibility, travel, education, giving, or early retirement?

If you’re a physician or a high-earning professional with a demanding schedule, this reflection can highlight where your money is working in the background and where complexity has crept in. Capture your thoughts in writing; they’ll become the foundation for next year’s plan.

2. Give Your Budget A Year-End Tune-Up

It’s true – budgets naturally drift over time. 

Year-end is a great moment to review your spending patterns, identify new habits, and adjust categories for the year ahead. If you find certain areas consistently overshooting, consider rebalancing. If you noticed you always underspend, you may have room to shift more toward saving or debt repayment. A simple year-end budget tune-up can include:

→ Review the last 3-6 months of spending. Look at your bank and credit card statements to see where your money actually went, not just where you thought it would go.

→ Update categories to reflect your real life. Maybe childcare, travel, or professional expenses rose. Rather than labeling that as failure, build your new budget around these realities.

→ Check recurring expenses. Review any subscriptions, streaming services, app memberships, and software tools you have. Cancel what you no longer use, and be sure to confirm insurance premiums, utilities, and any annual dues that may increase next year.

→ Adjust for upcoming changes. Are you expecting a raise, a change in clinical schedule, moonlighting income, or a major expense (like a wedding)? Incorporate those into your plan.

→ Reconnect your budget to your goals.If you want to prioritize retirement, debt payoff, college funding, or travel, adjust your monthly allocations so that your budget isn’t just tracking spending – it’s actively moving you toward your goals.

Think of this as a “performance review” for your budget. The goal isn’t to criticize yourself; it’s to make sure the financial plan you’re using still matches the life you’re living.

3. Review Retirement And Investment Contributions

Even if you’re not adjusting contributions at the last minute, a year-end review of your retirement accounts and investment strategy can help ensure you’re still on track. Start with a checklist:

→ Look at how much you contributed this year. Review your 401(k), 403(b), 457(b), IRA, or other workplace plans. Did you contribute what you intended to? Are you on track to reach (or get closer to) the annual IRS limits?

→ Confirm you’re capturing employer matches. If your employer offers a match, make sure your contribution rate was high enough throughout the year to receive the full match. Missing out is essentially leaving compensation on the table.

→ Consider next year’s contribution rate. Even a small increase – for example, boosting contributions by 1-2% – can have a meaningful impact over time. If you received a raise or bonus this year, you might earmark a portion of that for increased savings.

→ Check your investment allocation. Ensure your mix of stocks, bonds, and other investments still aligns with your time horizon, risk tolerance, and overall plan. Markets move, and over time, that can cause your portfolio to drift away from your target allocation.

→ Rebalance if necessary. If one asset class has grown significantly relative to others, you may choose to rebalance back to your target. This helps keep risk at a level that matches your plan, not your emotions.

→ Review taxable investment accounts. For non-retirement accounts, look at realized gains and losses this year. Understanding your current position can help you and your tax professional decide whether strategies such as tax-loss harvesting or charitable giving from appreciated assets make sense for you.

If this review feels overwhelming – especially if you have multiple accounts, employer plans, and side income – it can be helpful to work with a financial planner who specializes in coordinating these pieces.

4. Organize For Tax Season Now, Not Later

Gathering tax documents in January doesn’t have the same stress-relieving power as preparing in advance. Using the final weeks of the year to get organized can reduce the burden later and help you spot opportunities for potential deductions or credits. Consider:

→ Collecting key documents. Start a secure digital or physical folder for W-2s, 1099s (for consulting or moonlighting work), brokerage statements, and retirement plan contributions. Include student loan interest statements, mortgage interest statements, and property tax records if applicable.

→ Tracking deductible expenses. Gather receipts for charitable donations, eligible medical expenses, education expenses, and business costs if you’re self-employed or have side work. Don’t forget professional dues, licensing fees, and required continuing education.

→ Reviewing flexible spending accounts (FSAs). Some FSAs have “use-it-or-lose-it” rules, while others offer limited carryovers or grace periods. Check your balance and eligible expenses so you don’t leave benefits unused.

→ Checking estimated tax payments. If you have significant non-W-2 income (such as consulting, moonlighting, or rental income), confirm that your estimated payments are on track to avoid underpayment penalties.

→ Clarifying any major life changes. Marriage, divorce, starting a business, new dependents, or major changes in income can all affect your tax situation. Making a note of these now helps your tax professional prepare more accurately.

By taking a bit of time now, you’ll enter tax season with more control and fewer surprises – and you’ll give your CPA or tax preparer better information to work with overall.

5. Revisit Benefits And Insurance Coverage

Year-end often coincides with open enrollment season for workplace benefits. It’s a natural checkpoint to ensure your coverage still matches your needs. Areas to review:

→ Health insurance. Compare plans if you have options. Consider premiums, deductibles, out-of-pocket maximums, and your expected healthcare needs for the coming year. If you have a qualifying high-deductible health plan, evaluate whether contributing to a Health Savings Account (HSA) fits your situation.

→ Life and disability insurance. Many high-earning professionals are underinsured in these areas. Check whether your current coverage would realistically support your family if you were unable to work or if you passed away unexpectedly. You may need supplemental individual policies in addition to employer-provided coverage, especially if your income is a key pillar of your household finances.

→ Other workplace benefits. Review options such as dependent care FSAs, legal plans, group long-term care insurance, or student loan repayment assistance if offered. Some of these benefit choices are only available or adjustable during open enrollment.

→ Beneficiary designations. Year-end is also a great time to confirm that beneficiaries on retirement accounts, life insurance policies, and other assets are up to date and aligned with your overall estate plan.

→ Estate planning basics. If you’ve experienced a major life change this year (marriage, children, divorce, inheritance), consider whether your will, powers of attorney, and other documents need an update. While this isn’t strictly a “benefits” item, it’s a core part of protecting the people who rely on you.

Strong benefits and insurance coverage don’t just protect against worst-case scenarios – they support long-term stability and reduce the financial anxiety that can come with uncertainty.

6. Set Intentional Goals For The New Year

Goal-setting works best when it’s tied to your values. As you think about the next year, consider what financial stability looks like. Do you want to build a stronger emergency fund, travel more, buy a home, fund a child’s education, or finally tackle high-interest debt? A simple framework:

→ Start with your “why.” List 3-5 things that matter most: security, flexibility, family time, career options, early retirement, philanthropy, or something else. Let these guide your goals.

→ Create 1-3 goals in each time frame.

• Short-term (next 12 months): e.g., build a 3-month emergency fund, pay off a specific credit card, or increase retirement contributions by 2%.

  
  

• Medium-term (2-5 years): e.g., save for a down payment, fund a sabbatical, or pay down a large student loan balance.

  
  

• Long-term (10+ years): e.g., retirement, financial independence, or building a legacy through charitable giving.

→ Make goals concrete and measurable. Instead of “save more,” try “save $500 per month toward an emergency fund” or “contribute an extra $200 per paycheck to retirement.”

→ Automate what you can. Set up automatic transfers to savings and investment accounts, automatic debt payments above the minimum, and calendar reminders for quarterly check-ins.

→ Schedule a financial check-up. Put a date on your calendar – perhaps mid-year – to revisit your goals, track progress, and make adjustments. Treat it like any other important appointment.

Intentional goals transform your financial plan from a vague hope into a roadmap. You may not control everything that happens in the markets or the economy, but you can control the direction you’re heading and the good habits you build along the way.

Bringing It All Together With YPP’s Expert Financial Planning 

As you wrap up the year, consider carving out a quiet moment – away from emails – to reflect, regroup, and plan. A thoughtful year-end approach doesn’t just improve your finances; it can bring clarity, confidence, and peace of mind as you step into a fresh start.

If your finances feel more complex than you’d like to manage alone – multiple income streams, student loans, taxes, family goals, and competing priorities – partnering with a fiduciary financial planner can help you connect the dots and create a plan that truly fits your life.

Book a chat with a YPP professional here →