Your essential financial planning checklist

Your goals and money habits can change over time, but no matter what stage of life you find yourself in, everyone can benefit from regular financial housekeeping.  

LendingClub's essential financial checklist 

We've rounded up some to-do's to help get you started with your financial checklist.  

1. Conduct a quick financial inventory 

Set aside about an hour to look back at the past 12 months through a personal finance lens. Jot down your findings in a notebook or on the computer, and be as honest as you can. Reflect on what you achieved versus your goals and where you may have come up short. Did you stay on budget or spend more than you planned? Did you save more or less than you hoped to? Were you able to pay down debt, or did unexpected expenses set you back?  Did you actually set goals or just wing it? 

Celebrate your financial achievements from the past year and think through what else you still need to work on. Understanding your successes and determining areas for improvement helps set the foundation for goal-setting for the year ahead, and you may identify new strategies to stay on track and better live within your means.^[1 ]    

2. Review insurance policies 

Review any existing insurance policies you and your family have. This may include health insurance, homeowners insurance, auto insurance, or pet insurance—and don't forget life insurance. Consider if the plans still meet your coverage needs and budget. Do you need to adjust your deductibles? Do you need a different type of coverage in the coming year?   

It never hurts to compare rates. For example, you may be happy with your current auto insurer, but shopping around could result in better rates or more coverage for the same price.  

3. Check your employer benefits 

For people who get benefits, like health insurance or a 401(k), through an employer, the end of the year is a great time to check in. Did you use all of your health benefits? Did you maximize contributions to your health savings account (HSA), flexible spending account (FSA), or 401(k)? Do you need to make any adjustments to your plans or amounts deducted from your paycheck?  

In some cases, your employer may prompt you to make changes at the end of the year, like during health insurance open enrollment period. However, other tasks, like adding life insurance or updating your 401(k) portfolio mix, may be something you need to do on your own. Look into any new benefits your employer may be offering, like discounted gym memberships, charitable contribution matching, and more.  

4. Plan for major life changes 

Are you expecting any major life events within the next year, like a wedding, divorce, birth, or a new business? Is your child going off to college, or do you have dental work or a big medical procedure on the horizon? Maybe your home needs repairs, you need a more reliable car, or you're planning to adopt a new puppy.  

Whatever your financial situation is, when it comes to paying for large expenses, you may want to consider adjusting your budget to cover the cost. Decide if you'll save up, use your existing savings, pay with a credit card, or take out a personal loan.  

5. Access your emergency savings  

Any unexpected expense, such as medical bills and uncovered auto or home repairs, can set you back financially. A good rule of thumb is to have three to six months' worth of basic living expenses stashed away in an emergency savings account. Check in on your emergency fund. Did you meet your savings goal? Are you able to save more? Did you dip into the account and need to replenish funds?  

Whether you have $500 in your emergency fund or a year's worth of expenses tucked away, reviewing your emergency savings at the end of the year is an important step to feeling financially protected in the new year.^[2] 

6. Review your debt and credit  

Managing your debt and credit responsibly is an important part of your overall financial well-being. Take a look at your debt. Did you rack up more than you wanted to this year? Do you have a lot of high-interest debt, like credit cards? Are you on track to pay it off quickly? Or could you benefit from using a debt management strategy, like the debt avalanche or snowball methods? Does it make sense to consider a debt consolidation loan instead?  

Check your latest credit scores. Are they where you thought they would be, or do you need to take steps to improve your credit in the new year? This is also a good time to pull your credit reports and look for anything that's incorrect. You can get a free copy of your credit reports from all three major consumer credit bureaus through AnnualCreditReport.com.^[3]  

7. Maximize retirement savings 

Retirement plans, like 401(k)s and IRAs, all have annual contribution limits. For example, the Internal Revenue Service (IRS) limits individual 401(k) contributions to $23,000 per year in 2024. Annual IRA contribution limits are set at $7,000 in 2024. If you're over age 50, you may be eligible for catch-up contributions that let you save a bit more. Limits are even higher for self-employed individuals in some cases.^[4]   

The end of the year is a good time to review how much you contributed in 2024. If you haven't maxed out your contributions yet, you still have time to add more to your retirement account and take advantage of potential tax breaks.  

8. Conduct a year-end tax review 

Changes in dependents, income, and marital status can all affect your tax bill. Use the IRS's tax withholding calculator to decide if you need to make adjustments with your employer or how much you pay in estimated taxes if you're self-employed.  

If you're expecting a tax refund, the end of the year is also a good time to consider how you may want to use the extra cash. Do you want to stash it away for a rainy day in an emergency fund? Or does it make more sense to use the funds to pay down some debt? Planning how you'll spend your refund can help prevent spontaneous purchases when you get the check.  

The bottom line 

Taking time to evaluate your finances and money goals can help you see how far you've come—and what steps are still needed to build a healthy financial future and create a budget.

When you get in the habit of conducting annual financial reviews, you'll start to gain more insight into what financial strategies work best for you and set the foundation to feel more in control of your finances in the year ahead and beyond.     

1. Consumer Financial Protection Bureau. “Financial well-being: What it means and how to help.” 

2. Consumer Financial Protection Bureau. “An essential guide to building an emergency fund.” 

3. Consumer Financial Protection Bureau. “How do I get a free copy of my credit reports?” 

4. Internal Revenue Services. “401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000.”