5 Important End-of-Year Financial Actions
By Net Worth Advisory Group
The past few years have been challenging for many individuals and families. With ongoing concerns about inflation and the possibility of a recession, it’s natural to wonder what 2026 might bring.
The good news? Your personal finances don’t have to reflect the uncertainty of the broader economy. By taking proactive end-of-year financial actions, you can regain control, create stability, and start the new year with confidence.
Before 2026 arrives, we encourage you to take time to review your financial picture. Here are five smart end-of-year financial actions to help you begin the year on solid ground and set yourself up for success.
1. Assess Your Emergency Fund
Now is the time to ensure you have enough money set aside in your emergency fund or create a plan to build this up over the next year. An adequate emergency fund should cover 3-6 months of necessary living expenses, including mortgage or rent, utilities, groceries, transportation, etc., depending upon the stability and consistency of your income.
Recent statistics from Bankrate.com suggest that Americans are still woefully short on emergency savings. With continued stock market uncertainty and a slowdown in the economy, some experts recommend keeping a little extra (maybe 6-7 months’ worth of expenses) in savings. If you're single or your sources of income are inconsistent (e.g., commission-based sales or seasonal income), consider saving at the higher end of this scale to feel confident you're covered in the event of a job loss or reduction in pay.
However much you save, be sure this money is held in a highly liquid account. It needs to be readily available and easily accessible, but it should also be in an account that offers a competitive interest rate so that you don’t lose out on potential growth. Consider an FDIC-insured bank money market or high-yield savings account that offers a competitive interest rate so your money is still working for you in the meantime.
2. Review Your Asset Allocation & Invest with Impact
The end of the year is also a great time to review your asset allocation strategy. Given the continued impact of market volatility and historic levels of inflation these past few years, it’s crucial that you evaluate your investments and verify your portfolio is properly diversified.
It should also be tailored to your specific risk tolerance level, so you’re earning enough returns to keep up with inflation but not overexposing yourself to excess risk beyond your comfort level and your stage in life.
3. Consider Charitable Donations
Charitable donations are another option that can be reviewed as the year-end approaches. The holidays are a great time to give money and assets to your favorite non-profits, churches, and organizations.
Charitable donations can be used as part of your overall tax strategy, or as part of a comprehensive estate plan. Both options provide many potential benefits including supporting causes you care about, reducing your taxable income, and reducing your taxable estate.
4. Use Up Your Employee Benefits
While every employee benefit plan has its own rules and regulations, many of them expire or reset at the end of the year. You worked hard for these perks, so be sure to use them before it’s too late!
Medical and Dental Benefits
Now’s the time to take care of all your healthcare needs before your deductible resets. Dental plans in particular often have a maximum coverage amount. If you haven’t used the full amount and anticipate any treatments, make it a priority to set an appointment before December 31st.
Flexible Spending Account
Like your health insurance benefits, you’ll want to use up as much of your FSA (flexible spending account) dollars as possible by the end of the year since you are only allowed to carry over $660 for the plan year-ending 2025 into 2026. That being said, check the restrictions on your account to see what the money can and cannot be used for, and take care of any needs you may have as allowed by your plan.
Sick and Vacation Time
Depending on your company, your sick or vacation time might expire at the end of the year. Check with your HR department to learn about any expiration dates. If it does expire, fit in a last-minute staycation or take some time off to work on projects you’ve been putting off. If you need to make any trips to the doctor, schedule those appointments now to make use of paid-time-off benefits before you lose them.
5. Revisit Your Plans and Policies
Lastly, take another look at your estate plan and insurance coverage. If you took the time and energy to create an estate plan, check it periodically (every few years or when major life events occur) to ensure all the documents are up to date and no major details have changed.
Your insurance needs may also change as the year goes by, so periodically review your coverages and designated beneficiaries to bring them up to date to reflect your current financial situation. For example, if you paid off debt (such as your mortgage), you may not need as much life insurance coverage since your family’s liabilities have decreased. You might also want to evaluate your need for other types of insurance, such as long-term care or disability insurance.
Receive Guidance for Your End-of-Year Financial Actions
At Net Worth Advisory Group, we understand that the past few years may have brought financial uncertainty or unexpected challenges. Keep in mind that it’s never too late to regain control and set a clear direction for your future. Our team is here to help you organize and prioritize your end-of-year financial actions so you can start 2026 feeling confident and prepared.
Together, we’ll review your current financial picture, fine-tune your goals, and create a personalized plan to help you pursue your New Year’s resolutions. Let’s make this the year you move from financial stress to financial clarity.
Call us at 801-566-6639 or schedule a complimentary, no-obligation consultation to see if we are a good fit to help you pursue your goals. To learn more, visit our website.
About Net Worth Advisory Group
Founded in 2003, Net Worth Advisory Group is an independent, fee-only, CERTIFIED FINANCIAL PLANNER® and investment advisory firm located in Salt Lake City, Utah. We specialize in helping people transition from the workplace into retirement and ensuring that those who are already retired will not outlive their nest egg. Our top priority is to have clients experience a greater sense of ease with diligent, personalized wealth care and the implementation of customized financial plans and ongoing personalized asset management. We equip all clients with a comprehensive financial plan, meeting every six months to update as needed and review investment performance. Our team is passionate about providing comprehensive financial planning with the fee-only model, and we love feeling like we’re making a difference in our clients’ financial lives.
As a NAPFA-registered fee-only advisory firm, our recommendations are untainted by a hidden agenda to sell financial products paying large commissions. Unlike our competitors at brokerage firms, insurance companies, and banks, we are compensated solely by our clients, so we are financially motivated to provide objective advice that is always in our clients’ best interests. Anyone can call himself or herself a financial planner, but only an advisor with the CERTIFIED FINANCIAL PLANNER®, CFP® designation has met the education, examination, experience, and ethical requirements mandated by the CFP® board. According to the CFP Board, there are 97,000+ CFP® professionals in 2023, representing about 1 in 3 financial advisors in the U.S. Net Worth advisors are also members of NAPFA, which only has about 4,600 advisors, and are either CFP® professionals or CFP® professionals in training.
Net Worth Advisory Group’s mission is to significantly improve the lives of our clients by delivering exemplary financial planning and wealth management advice that enables them to live the lives they have imagined.
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