Your 2019 Year-End Financial Checklist

Do you like “Year-End” lists? Best movies of the year, top songs, cutest animals. We like lists (and helping you plan), so we crafted our own year-end checklist for financial wellness. By taking any of the steps below you can finish stronger financially in 2019, and set yourself up for a money 2020.

1. Review Your Spending

Time flies and so does money. That’s why regularly reviewing your spending is a great habit to develop. The end of a year is a great time to reflect on your spending and with BrightPlan it’s a breeze. 

Spending Analysis helps you review your transactions with ease, make conscious spending choices, and free up money for your goals. Just link your bank and credit cards to BrightPlan. We do the work for you, categorizing each transaction and showing you monthly spending trends. 

Sign in to BrightPlan and check your Spending Analysis from the Insights tab. Looking to take even more control of your spending? Generate your Smart Budget to set spending targets for each of your main budget categories, and see how your income, spending, and savings fit together.

Learn more: How to Prevent Lifestyle Creep

2. Commit to Reducing Your Debt

As debt destroyer Dave Ramsey puts it, "You can wander into debt, but you can't wander out of it." Getting into debt is easy. Getting out requires a plan.

Whether your wandering involved a new set of wheels, some last-minute holiday shopping, or an unexpected expense on a credit card, paying off those purchases frees up your money for other goals.

The first step is committing to paying more than your minimum monthly payments every month until that debt is gone. We recommend the Debt Avalanche plan, which puts those additional monthly payments towards your highest interest loans. 

For guidance from now to debt-free, set up your debt reduction goal in BrightPlan. We’ll organize your loans and help you direct your monthly commitment to get out of debt faster.

3. 401(k) and IRA Contributions – Max It, Don’t Tax It

December is your last month to make 401(k) contributions for 2019. If you haven’t quite maxed out your 401(k) for the year, consider signing in to your 401(k) provider’s site and giving your contributions a bump before the New Year.

Looking to go beyond the 401(k) for more retirement savings? Don’t forget Individual Retirement Accounts (IRAs). You can open and fund one of these tax-savvy investment accounts from your Retirement Goal in BrightPlan. Whether you choose a Traditional IRA or a Roth IRA, your 2019 contribution is very important. 

The limit for the 2019 contributions is $6,000, and you can make yours until tax day: April 15th, 2020. If you don’t take full advantage of your maximum 2019 IRA contribution, you cannot make it up later.

Even if you can't max out an IRA contribution for 2019, save what you can right to take advantage of all of the benefits an IRA provides. And while you’re planning for 2020, the maximum contribution will stay $6,000 – so consider budgeting $500 a month for your IRA next year.

4. Put Your Investments on Autopilot

If you’re not investing automatically for your goals, it’s time to start. Automatic investing is a simple and powerful tool to build wealth. It saves you time, sets aside money before you can spend it, and reduces the temptation of trying to time the market.

BrightPlan Investment Accounts make it easy. Create your top goals in BrightPlan and let automation work its magic. Each goal gets:

• its own investment account at TD Ameritrade
• a tailored investment plan
• advice on how much money to save each month

You don’t need to worry about selecting the right funds, rebalancing your portfolio, or remembering monthly deposits. Commit once to invest in your future and BrightPlan makes it happen.

If you're already investing automatically, pat yourself on the back. Now review your investments. Got a raise this year? See if you can kick up your contribution by one or two percent to invest even more next year.

5. Pad Your Emergency Fund

Stuff happens in life – medical needs, insurance deductibles, accidents, car repairs. With an emergency fund, you're ready. Your other financial goals can stay on track and you avoid the high interest rates of using a credit card for an urgent expense.

If you already have an emergency fund, now is a good time to review it. Do you have enough set aside? The typical rule of thumb is to save 3 to 6 months of living expenses in a separate account to be ready for financial surprises.

If you haven’t started an emergency fund, give yourself the gift of financial peace of mind this year. When you set up your Emergency Fund goal in BrightPlan, we’ll advise you on how much to save and how to invest your cash reserve. You probably won’t fund it overnight, and you don’t have to. But begin building your safety net now by opening a separate account and setting up a small automatic contribution each month.

Take a Step Towards Financial Wellness in 2020

BrightPlan was created to help make your life better with financial tools and resources. The more prepared and focused you are for your future goals, the more you can enjoy today.

Thank you for allowing us to help you this past year. We hope you have a joyful and peaceful holiday season and look forward to a great 2020.