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5 things to get done before the end of the year. Then kick back with some holiday cookies!
The holidays are my favorite time of the year. They combine year-end reflection, financial analysis, and mountains of baked goods – three of my favorite things in the world! For others who are also thinking about what needs to get done before they kick back on the couch with some hot cocoa and Netflix, here are five major loose ends that are worth your time and consideration.
At the end of the year, I like to check three key metrics and compare them to last year’s numbers. Carve out 15 to 20 minutes to update these numbers and discuss them with your partner (if you have one).
For this exercise, it is incredibly useful to have a single dashboard to be able to view your finances. You can do this by updating excel spreadsheets monthly or use a software tool to help you, whatever works for you. I personally use a free service called Personal Capital which will take you less than 10 minutes to set up, and I highly recommend it.
Here are the three metrics that show up on my report card:
Net Worth – Where are you in total net worth, and how does that compare to where you wanted to be?
Expenses – I like to see my total expenses for the year and then compare them category by category with what I spent last year. You can do this easily in Personal