16 Smart Money Moves to Take Before the End of the Year

What are the best financial decisions to make to make it through to the end of the year?

As the year draws to a close, it’s the perfect time to take a closer look at your finances. Smart planning now can set you up for a stronger, more stable financial year ahead.

Whether your goal is to save more, invest wisely, or reduce your tax burden, these 16 smart money moves can help you finish the year on a high note.

1. Review your financial goals

Start by revisiting your goals for the year. Did you meet your savings targets? How did your investments perform? A quick review helps you identify what worked, what didn’t, and where to adjust for next year.

2. Maximize your retirement contributions

If you have a 401(k) or IRA, now’s the time to top it up. The more you contribute before December 31, the more you reduce your taxable income, and the faster your money grows tax-deferred.

3. Use your FSA or HSA funds

Check your Flexible Spending Account (FSA) or Health Savings Account (HSA) balances. Many FSA funds expire at year-end, while HSA funds roll over. Schedule that dental check-up or eye exam you’ve been postponing.

4. Review your insurance coverage

Evaluate your health, auto, home, and life insurance policies. Are your coverage levels still adequate? A quick review can reveal gaps or potential savings, especially if your lifestyle or income has changed.

5. Pay down high-interest debt

High-interest credit card balances can eat away at your savings. Make an extra payment or consider consolidating your debt. Entering the new year with lighter debt gives you more financial breathing room.

6. Review your credit report

Request a free copy of your credit report from AnnualCreditReport.com. Check for errors or outdated information. A strong credit score means better loan terms and lower interest rates in the future.

7. Boost your emergency fund

Experts recommend having at least three to six months of living expenses saved. If your emergency fund has taken a hit this year, make it a priority to rebuild before 2025 begins.

8. Adjust your tax withholding

If you received a large refund or owed a big amount last year, review your tax withholding. Adjusting it now helps you avoid surprises at tax time.

9. Harvest tax losses

If some of your investments underperformed, you can sell them at a loss to offset capital gains, a strategy known as tax-loss harvesting. It’s a smart way to reduce your taxable income.

10. Donate to charity

Charitable donations made before December 31 are tax-deductible. Whether it’s cash, clothing, or volunteer time, giving back not only helps others but can also help reduce your tax bill.

11. Check your beneficiaries

Life changes fast, marriages, divorces, and new family members can make your beneficiary designations outdated. Review them across all policies and retirement accounts to ensure your assets go where you intend.

12. Automate your savings

Set up automatic transfers to your savings or investment accounts. Even small, consistent contributions can lead to significant growth over time, and automation keeps you on track without effort.

13. Review your investment portfolio

Take a look at your asset allocation. Is it still aligned with your goals and risk tolerance? Rebalancing your portfolio can protect you from unnecessary risk and help optimize long-term returns.

14. Plan major expenses for next year

Do you anticipate large purchases, tuition payments, or home repairs in 2025? Start setting money aside now or exploring 0% financing options to avoid taking on high-interest debt later.

15. Use remaining rewards or points

If you have credit card rewards, airline miles, or cash-back offers, check their expiration dates. Redeem them for travel, gifts, or statement credits before they lose value.

16. Schedule a financial check-up

Finally, consider meeting with a financial advisor. A year end review helps you create a tax-efficient strategy, fine-tune investments, and set clear financial goals for the year ahead.

Final thoughts

Taking control of your finances before the year ends isn’t just about saving money, it’s about building momentum for the future. By reviewing, adjusting, and planning strategically, you position yourself to start 2025 with confidence and clarity.

The key is to act now, not later. Even small changes, like contributing to your retirement account, paying down debt, or rebalancing your investments, can have a lasting impact.

So before you raise your glass to celebrate the new year, take these 16 smart money steps. Your future self will thank you.

Written by

Juliana Raquel