Five Money Moves to Make Before the End of the Year
Make these five essential money moves by December 31 to save more, invest wisely, and start the new year on strong financial footing.
January signals a fresh start, offering a prime opportunity to set ambitious financial goals for the year ahead. However, before welcoming the new year, it’s crucial to execute strategic money moves by December 31. These actions can optimize your savings, enhance investment growth, and fortify your financial security, positioning you for greater success. Drawing from established financial practices, this guide outlines five pivotal steps to take right now, ensuring you enter the new year with confidence and momentum.
Take Advantage of Your Health Insurance Before Your Deductible Resets
Most health insurance plans operate on a calendar-year basis, meaning deductibles, copays, and out-of-pocket maximums reset on January 1. If you’ve already met or are nearing your deductible this year, your insurer will cover a larger portion—or potentially all—of qualifying medical expenses moving forward. This presents a timely opportunity to schedule necessary procedures, check-ups, or treatments before the clock strikes midnight.
Consider non-emergency services like dental cleanings, vision exams, elective surgeries, or specialist consultations that you’ve postponed. For instance, if you’re approaching your out-of-pocket maximum, costs for physical therapy, prescriptions, or even orthodontics could drop significantly. Always verify your plan’s specifics, including in-network providers and pre-authorization requirements, to avoid surprises. According to the U.S. Department of Health and Human Services, understanding your plan’s summary of benefits can prevent unexpected bills.
- Schedule routine screenings: Mammograms, colonoscopies, or annual physicals often count toward deductibles.
- Address chronic care: Stock up on preventive medications or therapies while coverage is optimal.
- Plan for family needs: Coordinate appointments for dependents to maximize family plan benefits.
By acting now, you not only save money but also prioritize health, potentially averting costlier issues later. If your plan year doesn’t align with the calendar, note the reset date for future planning.
Consider the Status of Your Contributions to a 401(k) and Other Qualified Retirement Accounts
Year-end is the perfect time to review and maximize contributions to retirement accounts. For 2026, the IRS sets contribution limits at $23,500 for 401(k)s under age 50, with catch-up contributions of $7,500 for those 50 and older.[10] Employer-sponsored plans allow pre-tax dollars, reducing your taxable income while funds grow tax-deferred until withdrawal.
If eligible, fund a Roth IRA with after-tax contributions up to $7,000 ($8,000 for age 50+), enjoying tax-free growth and qualified withdrawals in retirement. Income limits apply: for 2026, full contributions phase out at $150,000-$165,000 for singles and $236,000-$246,000 for married filing jointly.[10] Not eligible for Roth IRA? Check for Roth 401(k) options through your employer or open a traditional IRA.
| Account Type | 2026 Contribution Limit (Under 50) | Key Benefit |
|---|---|---|
| 401(k)/403(b) | $23,500 | Pre-tax, employer match possible |
| Roth IRA | $7,000 | Tax-free growth/withdrawals |
| Traditional IRA | $7,000 | Tax-deductible contributions |
Increase payroll deductions if possible—many plans allow last-minute boosts. This leverages compound interest: a $1,000 year-end contribution at 7% annual return could grow to over $7,600 in 30 years. Employer matches are essentially free money; ensure you’re capturing the full amount.[10]
Use Your Paid Time Off (PTO)
If your PTO accrues or resets annually, forfeiting unused days means leaving money on the table—PTO is part of your compensation package. In 2026, with ongoing workplace demands, recharging is vital for productivity and mental health. The average U.S. worker receives 10-15 PTO days, but many don’t use them fully, per the Bureau of Labor Statistics.[11]
Contact HR to confirm your balance and policy—some roll over, others ‘use it or lose it.’ Submit requests early for preferred dates, especially holidays. Use PTO for vacations, staycations, or mental health days to prevent burnout. Financially, it preserves income without dipping into savings; productively, rested employees perform better, potentially leading to raises or bonuses.
- Plan strategically: Book travel or family time now.
- Combine with holidays: Extend breaks cost-effectively.
- Negotiate carryover: If policy allows, discuss with management.
Prioritizing PTO isn’t lazy—it’s smart financial and personal management.
Check Your Credit Reports and Credit Scores
A year-end credit review provides a financial health snapshot, spotting errors, fraud, or outdated info before they impact loans or rates. Free weekly reports from AnnualCreditReport.com (authorized by the FTC) cover Equifax, Experian, and TransUnion.[12] Scores range 300-850; higher scores mean better terms.
Review for inaccuracies like wrong personal info, duplicate accounts, or unrecognized inquiries. Dispute errors promptly—up to 30% of reports contain mistakes, per the Federal Trade Commission.[12] Monitor for identity theft signs, like unfamiliar accounts. Tools like Equifax Core Credit offer free monthly scores without credit impact.
- Freeze credit: Prevent fraud, especially post-review.
- Pay down utilization: Keep below 30% for score boosts.
- Update info: Ensure addresses and beneficiaries are current.
Strong credit entering the year aids big purchases like homes or cars.[12]
Review the Security of Your Financial Accounts
Cyber threats evolve; same passwords across accounts heighten risks. Update unique, strong passwords (12+ characters, mix of types) using managers like LastPass. Enable two-factor authentication (2FA) everywhere—adds a verification step, blocking 99% of automated attacks, per Microsoft.[13]
Scan for breaches via Have I Been Pwned, change compromised credentials. Review account activity for anomalies, set transaction alerts. Secure devices with antivirus and updates. The FBI reports $10.3 billion in U.S. cyber losses in 2023, underscoring vigilance.[14]
- Audit passwords: Change every 3-6 months.
- Implement 2FA: App-based preferred over SMS.
- Use VPNs: On public Wi-Fi for banking.
Proactive security safeguards wealth.
Frequently Asked Questions (FAQs)
What if I can’t max my 401(k) by year-end?
Adjust future contributions; even partial boosts compound over time. Consult a financial advisor for personalized plans.[10]
Does checking credit hurt my score?
No—soft inquiries don’t affect scores. Use free services weekly.[12]
What if my PTO doesn’t roll over?
Use it or negotiate payout where legal (not all states require).[11]
Are Roth IRAs always better?
Depends on tax bracket now vs. retirement. Low now, high later? Roth wins.[10]
How soon do credit disputes resolve?
Typically 30 days; bureaus must investigate.[12]
References
- Five Money Moves to Make Before the End of the Year — Equifax. 2023. https://www.equifax.com/personal/education/personal-finance/articles/-/learn/five-year-end-money-moves/
- IRS Retirement Topics – IRA Contribution Limits — Internal Revenue Service. 2025-11-06. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
- American Time Off Report — Oxford Economics for Project: Time Off. 2023. https://www.projecttimeoff.com/report/
- Free Credit Reports — Federal Trade Commission. 2024-09-16. https://www.consumer.ftc.gov/articles/free-credit-reports
- 2024 Data: A Year Under Siege — Microsoft Digital Defense Report. 2025. https://www.microsoft.com/en-us/security/security-insider/emerging-threats/digital-defense-report-2024
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