Harris: End-of-the-Year financial planning tips
By Charlestien Harris, Retired Financial Coach at Southern Bancorp
This article marks the conclusion of our month-long celebration of National Financial Planning Month! I hope you’ve found a few golden nuggets in the series and have already begun implementing some of the suggested steps to improve your financial well-being.
As the end of the year quickly approaches, there are still actions you can take to maintain – or even enhance – the positive financial path you’ve set for the coming year. Let’s dive right in!
1. Set Goals for Next Year
Why wait until the last minute to shape your financial outlook for 2026? Now is the perfect time to determine your financial priorities for the coming year. Starting early gives you time to reflect on what you want to accomplish financially – and this step might even feel like an early Christmas gift.
2. Use December to Maximize Year-End Opportunities
Here are a few suggestions to make the most of the final month of the year:
- Contribute to charity: Make charitable donations by December 31 to potentially qualify for tax deductions.
- Finalize retirement contributions: Complete any remaining contributions to your retirement accounts, including catch-up contributions if eligible.
- Take required minimum distributions (RMDs): If you’re 73 or older, be sure to take your annual RMD from retirement accounts.
- Organize financial paperwork: Gather and sort tax-related documents such as W-2s, 1099s, mortgage interest statements, and records of charitable donations.
- Review your credit report: Check for identity theft, errors, and outdated information to ensure your credit history is accurate.
3. Revisit Your Estate Plan
Review your will and estate plan to ensure your legal documents reflect your current wishes for asset distribution. Communicate your intentions with your family, and consider discussing estate plans with aging parents. Understanding their desired outcomes can help clarify the process when the time comes.
4. Focus on Smart Shopping Strategies
As the holiday season approaches, adopt smart shopping habits to save money. Create a budget for gifts, food, and other seasonal expenses. Comparison shop to find the best deals, avoid impulse purchases, and make a list of intended items. Consider generic brands, and look for name-brand items when they’re on sale or in season.
5. Contribute to Emergency Savings
An emergency fund is one of the most essential tools for financial security. Life is unpredictable, and having a financial cushion can help you avoid debt during unexpected events. Ideally, your emergency fund should cover 6 to 12 months of living expenses. If you’re not there yet, don’t worry – just commit to setting aside what you can each month until you reach your goal.
Whether you’re saving for a rainy day, tackling debt, or preparing for retirement, every step you take toward financial wellness is a step toward greater freedom and peace of mind. Financial Wellness Month may be ending, but true financial stability requires a year-round commitment.
For more information on this and other financial topics, feel free to write to me at P.O. Box 1825, Clarksdale, Mississippi 38614, or email me at charlestienharris77@gmail.com.
Until next week – stay financially fit!
Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.
