Year-End Financial Checklist: 6 things to consider

by | Dec 20, 2022 | Financial Tips | 0 comments

With the end of 2022 fast approaching, there may be many things vying for your attention, but are your finances one of them? Here at ACN Financial Group we want to help you prepare for the new year, with eight things to consider for your year-end financial checklist. 

ACN Financial Group, financial checklist1. Debt check in

If you’re struggling with debt right now – you are not alone. Debt today is affecting a large number of Canadians. That’s why it’s important to break debt down into achievable goals. From there, decide how to measure success, and review progress over time. 

Manulife Financial has some important steps to managing your debt. These steps include creating a budget (and sticking to it!), and planning to pay off debt efficiently. They also recommend looking for ways to supplement your income. 

Already have goals in place to help manage your debt? Now is a great time to review how you’re doing. Depending on your results, you can adjust your plan for the new year. That way you’ll feel confident you’re starting 2023 on the right foot.

2. Emergency Fund Planning

An essential for your financial checklist is emergency fund planning. Setting money aside for unplanned costs not only increases your peace of mind, but also helps reduce debt in your life. 

Manulife advises to gradually build an emergency fund over time, preferably in a separate bank account. Having an emergency fund will decrease the risk of having to add to your debt in a financial crisis. Experts recommend an emergency fund that covers 3-6 months of expenses. If you don’t have an emergency fund in place, now is a great time to start contributing towards it!

3. Charitable donations

Before the end of the year you may want to consider giving to a registered charity. Not only is this a great way to give back, but there are also provincial and federal tax credits available for you if you do. Tax credits help reduce the tax you pay on your taxable income. 

To learn more about claiming charitable tax credits, visit Canada Revenue Agency’s website.

4. Reassess insurance needs

A lot can change in a year! Maybe you’re expecting a new addition to your family next year, you’ve gotten married, or you’re planning for your future. Whatever the change is, it could be time to reassess your insurance needs.

Manulife has a helpful article outlining what types of protection are right for your needs and lifestyle. This is where a financial consultant can be very helpful as well. In this resource you can find a checklist with key questions to help you identify your needs and priorities.

5. Review your Will and Power of Attorney designations

Surveys show roughly half of Canadians don’t have a Will. That number increases to 70 per cent with those aged 18-34, and 66 per cent for people aged 35-54. Without a Will, the court appoints someone to administer and distribute your estate according to your province’s laws. This means your specific wishes won’t be taken into account.

If you already have a Will, you’re ahead of the curve! Make sure to keep your Will updated. This is especially important if you have had significant life events happen since it was last reviewed.

Finally, it’s important to obtain/seek legal advice when it comes to creating or updating your Will. This will ensure the documents are valid and your wishes are clearly documented.

6. Review investments and assess goals

Now is a great time to review how your investments are performing. It’s also an opportunity to reassess if your investing needs or goals have changed. Before heading into the new year, contact your financial consultant to review your investment portfolio. Together, you can discuss any changes in your financial goals. 

We hope you found this year-end financial checklist helpful for your 2023 planning. At ACN Financial Group, we are here to help you build a strong financial foundation. One block at a time. Contact us today!