I have been busy doing my year end financial routine:
- Reviewing my net worth compared to previous years. Up 5% this year despite lawyer bills and an uneasy stock market. I had hoped for more, but not bad.
- Rebalancing my retirement portfolio to keep it in line with my goals. Didn’t have to do much rebalancing this year.
- Going through my filing system and discarding what is no longer necessary. Haven’t finished yet. It is unbelievable how much paper, especially financial paper comes through in a year. Whatever happened to the paperless society?
- Prepare for tax season. I set up a tax folder so that when all the forms come I have one place to file everything. Also, when I am going through the filing system, when I come across something for taxes (giving statements, extra income, etc.) I put it in the folder. Then when I am ready to do my taxes, I am not sorting through tons of stuff.
- I review my budgets and make any changes. I tend to do this quarterly, but the end of the year is the time I focus the most on it (if I get raises, I know about it in December and it starts in January – calendar year budget at church).
- Finally, I go through our safe to see if there is anything that needs to be shredded, and if I need to add any documents for safe keeping.
Because I use budgeting software, and I have an organized filing system, it takes only part of a day to get everything done – usually a Saturday afternoon. Not a bad investment of time – I get a complete picture of what is going on, I know what I have on file and where it is, and I am ready for the New Year.
{ 2 comments… read them below or add one }
If only I could hire you to help me get organized. I try all year to keep things where they belong, and filed correctly, but it never works out. Tax time is always a mess because the paperwork I need is never where it should be.
Organization is a skill that must be mastered to remain sane – that’s something I’m convinced of.
No more arguments on your views, I agree with you. You were absolutely right; everyone has to take a call on year end activities so to plan future activities in advance before the New Year starts. Like you, I have also created year-end plan for this year. I really loved your work.