Important money moves to make before the end of the year
As the year winds down, financial advisers say it’s important to take specific steps to strengthen your finances and position yourself well for the new year. The Yahoo Finance article highlights nine actionable moves: performing a budget check-up, shoring up your emergency fund, using up any remaining Flexible Spending Account (FSA) money, auditing and cancelling unnecessary subscriptions, maximizing retirement account contributions, reviewing insurance policies, revisiting debt-paydown strategy, holiday spending planning, and tax-year wrap-up actions.
First, the article suggests beginning with a full budget check-up: examining income and expenses during the year, comparing planned vs actual spending, and making adjustments. This helps you see where overspending happened or where savings opportunities were missed. It suggests using this insight to refine next year’s budget.
Second, it recommends shoring up your emergency fund, especially if you haven’t built one yet or if your buffer is thin. The upcoming year may bring surprises (medical, job loss, inflation peaks), and having 3-6 months of expenses in liquid savings is increasingly viewed as imperative.
Third, for people with a Flexible Spending Account (FSA) tied to health or dependent care, the article urges them to use the remaining funds before year-end (or check if carry-over is allowed) — otherwise those funds may be forfeited. This is a standard “use it or lose it” scenario in many employer plans.
Next, it promotes a subscription audit: in today’s age many people are paying for multiple streaming services, software, apps, magazines, and other recurring costs. The article says it’s worth cancelling those you no longer use or renegotiating fee tiers to free up cash for savings or debt reduction.
Beyond that, it touches on tax-year and retirement strategies: maximizing contributions to IRAs, 401(k)s, or other tax‐advantaged vehicles before year’s end; ensuring required minimum distributions (RMDs) where applicable; and reviewing insurance and estate planning documents. The idea is to finish the year strong so you start the next year with momentum rather than playing catch-up.
Finally, the article reminds readers of the holiday spending risk — that seasonal expenses can throw off finances for months if not properly planned. Creating a spending plan for gifts, travel, and celebrations helps avoid adding to credit card debt or dipping into emergency savings. Completing this step is part of the nine recommended money moves.
Key Social Outcomes
-
Individuals and families become more financially resilient, reducing stress and anxiety related to money and unexpected expenses.
-
Lower-income households may find improved access to financial stability if they proactively engage in savings and budget discipline before year-end.
-
A culture of thoughtful consumption is encouraged — people become more mindful of recurring costs and subscriptions instead of passive spending.
-
Communities benefit when more residents have robust emergency savings and lower debt loads, potentially reducing dependence on social safety nets in crises.
-
Improved financial literacy and empowerment across demographic groups as year-end reviews push conversations around budgeting, savings, and retirement.
Why It Matters
-
Helps close the gap between good intentions and actual financial behaviour by providing concrete year-end steps.
-
Mitigates risk of financial shocks in the coming year, which is especially important given economic uncertainty (inflation, job market shifts).
-
Enhances individual readiness for retirement and long-term goals by encouraging tax-advantaged saving and debt reduction.
-
Addresses systemic inequities: individuals with fewer resources often neglect emergency funds or overspend; promoting these steps supports greater financial equity.
-
Encourages proactive rather than reactive financial management — starting the next year from a position of strength rather than recovery.
