Updated: Dec 26, 2024

As the year wraps up, it’s a great time to get organized, reflect, and prepare for a smooth transition into the new year. Check out these ten simple steps to help you save time, money, and reduce stress before you ring in the new year.

1. Review Your Budget and Financial Goals

The end of the year is perfect for reviewing your budget and seeing where your money went. This gives you a clear picture of your spending habits and helps you set realistic financial goals for next year.

• How to Do It: Look at your income, expenses, and savings from the past year. Compare them to your goals and identify any changes you want to make.
• Pro Tip: Set a few realistic savings goals for next year based on what you learned. Try using a budgeting app to stay on track.

2. Organize Tax Documents Early

Getting a head start on tax preparation can reduce stress and help you avoid the last-minute scramble in April. Gathering and organizing your tax documents now can also help you take advantage of potential deductions and credits.

• How to Do It: Collect W-2s, 1099s, receipts for deductible expenses, and any relevant tax documents. Keep them in a labeled folder, either physically or digitally.
• Pro Tip: Track down receipts or records of charitable donations, business expenses, and medical costs to ensure you claim all available deductions.

3. Check Unused Benefits and Health Accounts

Many health benefits, such as funds in flexible spending accounts (FSAs) or wellness program perks, don’t roll over to the new year. Make sure to use up these benefits to avoid losing out.

• How to Do It: Schedule doctor visits, eye exams, or dental appointments before the end of the year. If you have an FSA, consider spending on eligible medical expenses.
• Pro Tip: Check with your HR department for any wellness perks you might not have used, like gym reimbursements or health programs.

4. Declutter and Donate Unused Items

Decluttering your home helps you start the new year with a fresh, organized space, and donating gently used items to charity can bring tax deductions while helping others.

• How to Do It: Sort through closets, cabinets, and storage areas. Bag up items you no longer need, and donate them to local charities or shelters.
• Pro Tip: Get a receipt for your donations to use as a charitable deduction when filing taxes.

5. Cancel Unused Subscriptions and Memberships

Unused subscriptions can quietly drain your bank account every month. Review your monthly statements to identify services or memberships you can cancel, especially if you haven’t used them recently.

• How to Do It: Look over your bank or credit card statements for recurring charges. Cancel any subscriptions that no longer provide value.
• Pro Tip: Consider using a subscription management tool to track active memberships and get reminders before they renew.

6. Back Up Important Files and Photos

Digital clutter can cause stress, and losing important files is frustrating. Organizing and backing up your data now protects your files and clears out space for the new year.

• How to Do It: Sort through your computer, phone, and cloud storage for important documents and photos. Delete what you don’t need and back up everything else.
• Pro Tip: Use an external hard drive or secure cloud storage for backups, and consider setting a reminder to back up data regularly next year.

7. Update Your Passwords and Security Settings

Online security is increasingly important, and the end of the year is a great time to ensure your accounts are secure. Updating passwords and reviewing security settings on your accounts can protect you from potential fraud.

• How to Do It: Change your passwords on key accounts like email, banking, and shopping sites. Use strong, unique passwords for each account, or try a password manager to simplify the process.
• Pro Tip: Enable two-factor authentication (2FA) on sensitive accounts for added protection.

8. Reflect on Personal and Professional Achievements

Take time to acknowledge your achievements, both personally and professionally, over the past year. Reflection can help you see how far you’ve come and identify areas you’d like to improve in the year ahead.

• How to Do It: Make a list of your accomplishments, big and small, and consider any lessons you learned. This could include projects at work, personal goals you met, or ways you grew emotionally.
• Pro Tip: Write down three to five goals for next year based on what you want to build on or change from this past year.

9. Organize Your Calendar for Next Year

Setting up your calendar now can make the start of the new year smoother. Planning appointments, important dates, and events in advance helps you stay organized and avoid last-minute scheduling stress.

• How to Do It: Add birthdays, anniversaries, and any known appointments or deadlines to your calendar. You might also include reminders for things like annual medical checkups or financial reviews.
• Pro Tip: Set up automated reminders for important dates or tasks, especially those you tend to forget.

10. Create a Simple Self-Care Plan for the New Year

The new year is an excellent time to set intentions for prioritizing your mental and physical health. Creating a basic self-care plan helps ensure you’re taking regular steps to recharge and stay healthy.

• How to Do It: Think about daily or weekly habits that would improve your well-being, like setting aside time for exercise, journaling, or spending time with loved ones.
• Pro Tip: Start with small, achievable goals, such as a daily walk or setting one evening a week for personal time. Building routines that promote self-care can help you stay balanced and focused throughout the year.

Final Thoughts

Taking these simple steps can help you end the year on a positive note and make a fresh start for the new one. By organizing your finances, protecting your digital security, and setting goals for personal growth, you can save time, reduce stress, and start the next year feeling more prepared and focused. With a bit of planning, you’ll be ready to embrace the new year with clarity and confidence.