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The last quarter of the year can feel like a sprint to meet deadlines, but it’s also a time to step back and reflect on your progress and goals.
“When you get close to the end of the year, life gets busy,” says Kevin Feig, certified financial planner and founder of the firm Walk You to Wealth in Dover, Massachusetts. There's open enrollment, holiday spending and, of course, forecasting for tax time. Anticipating what's coming can help you get ahead.
Here are six steps to take before the clock strikes midnight on Jan. 1:
Leverage your cash flow
Reviewing your budget now — noting what’s coming in and what you plan to spend — can alert you to any necessary adjustments, especially if you expect significant holiday shopping expenses. Do you have to cut back in one area to fund another?
“I am very much wanting to assign every dollar a job and a place,” says Lazetta Rainey Braxton, CFP and managing principal of the firm The Real Wealth Coterie in New Haven, Connecticut.
She encourages clients to check their “cushion account,” or short-term savings, to make sure they have funds to turn to for unexpected expenses.
Higher earners may get an added perk. Those making more than $176,100 (the Social Security Cap) will see their paycheck increase once they hit their contribution limit for the year. That means they will have extra funds to put toward something like savings, debt payoff or investing.
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Check your workplace benefits
Open enrollment for workplace benefits typically happens in the fall, so Feig suggests reviewing your current benefits now. Evaluate any changes you want to make before you get the email from HR. Enrolling in a different health insurance plan, contributing to a flexible spending account and signing up for life or disability insurance are all options to consider.
Similarly, if you contributed to a flexible spending account in 2025, it’s a good time to check if you have funds that still need to be used by the end of the year. Flexible spending accounts typically operate under a “use it or lose it” policy where you give up the funds if you don’t spend them.
Top off any charitable donations
The last day of the year is the deadline for 2025 charitable contributions.
“Private donations are critical to support causes that are meaningful to people,” Braxton says.
Donations are also a way to reduce taxable income. So she encourages clients to consider any remaining contributions now to avoid feeling rushed in the final weeks of the year.
Review your tax expectations
If you haven’t had enough taxes withheld throughout the year, then the April tax deadline can come with an unpleasant surprise, warns Bob Wolfe, CFP and founder of the firm HealthyFP in Conshohocken, Pennsylvania.
That’s why he recommends reviewing your projected tax liabilities now to see if you need to set any extra cash aside. People with side gigs and non-retirement investments are among those more likely to owe taxes on top of what they’ve already had withheld.
Max out retirement contributions
Retirement accounts like 401(k)s also generally carry a Dec. 31 deadline. If possible, Braxton recommends aiming to max out your contributions for the year. The limit is $23,500 for those under 50.
For other types of retirement accounts like Roth IRAs, you generally have until April 15 to make any final contributions.
Set goals and prepare to adjust
Feig recommends finding time to review your finances and map out your savings goals for the year ahead.
Then, if new challenges pop up next year — like a job loss, health scare or relocation — you can make adjustments. “There will be lots of twists and turns along the way, but you still want a plan,” he says.
Feig says it’s like using a map app that offers you a new path when you hit traffic. Roadblocks and traffic will come up, but having an alternate route ready will still get you where you want to go.
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