As the year comes to a close and the holiday season fills the air, it’s the perfect time to reflect on your financial goals and set the stage for a prosperous 2025. Stacy Francis, CFP®, CDFA®, CES, shares five essential money moves you need to make before the ball drops in Times Square. These actionable tips will help you finish 2024 strong and kickstart the new year on solid financial footing.

1. Revisit Your Budget

Did you stay on track with your spending and saving goals this year? Now is the time to analyze your budget. Look for trends—did you indulge in too many espresso martinis or face unexpected but inevitable bills? Adjust your spending plan to account for inflation and rising costs. Focus on significant expenses like housing and insurance, as well as recurring subscriptions that might be eating away at your savings potential. Updating your budget ensures you’re financially prepared for what’s ahead.

2. Boost Your Savings

Even if procrastination got the better of you in 2024, there’s good news: you can still make your IRA contributions for the year until April 15, 2025. If you’re under 50, you can contribute up to $7,000, and if you’re over 50, you get the bonus of contributing $8,000. Starting 2025 with a boosted savings account sets a positive tone for the new year and helps you invest in your future.

3. Meet Key Deadlines

Certain year-end financial deadlines require your attention, such as required minimum distributions (RMDs) from retirement accounts. If you’re eligible, ensure you take the necessary distributions before December 31 to avoid penalties of up to 25% from the IRS. It’s also an excellent time to use up any remaining funds in your flexible spending accounts (FSAs). These “use-it-or-lose-it” accounts can be spent on health essentials, prescriptions, and even surprising items like travel pillows. Don’t leave money on the table.

4. Review Your Portfolio

While the market might have performed well, not all investments yield the same results. Review your portfolio to identify under-performing assets. If you have losses, consider selling those investments to offset taxable gains. This strategy can reduce your tax burden and ensure your portfolio aligns with your financial goals.

5. Update Estate Plans

Finally, take time to dust off your estate planning documents. Are the people you love listed as beneficiaries in your will, healthcare proxy, power of attorney, and retirement accounts? Double-check these details to ensure they reflect your current wishes. Updating these documents ensures that your assets are distributed according to your intentions.

Celebrate Your Wins

Before the countdown to 2025 begins, pause to celebrate your achievements in 2024. Whether you saved for a big trip, paid off debt, or supercharged your retirement savings, every step forward is worth acknowledging. Remember, the small steps you take today lay the foundation for a smoother, more secure financial future.

As Stacy says, Santa isn’t the only one checking his list twice, it’s time to check your financial list and make these key moves before the new year. Here’s to a brighter, more prosperous 2025!