As the calendar winds to a close, our team at Mabrey Bank wants to make sure you have made an end of year financial list and checked it twice. To help, we sought the advice of Darcie Henderson, Private Banking Officer, SVP, at our Oklahoma City location, to give us some basic steps to ensure you can look forward to a financially healthy new year.
Darcie has worked in the banking industry for more than 30 years in Retail Banking, Private Banking, and Treasury Services. As a Certified Treasury Professional, she understands the importance of maximizing cash flow while minimizing risk for both consumers and businesses alike. For the last five years, Darcie has been an asset for our Mabrey Bank clients in Oklahoma City. Recently, Darcie was recognized as Mabrey Bank’s MPACT Award winner for 2023 for her passion and commitment to volunteering and serving in our community.
Let’s make our checklist.
1) Review, Refine and/or Set a Monthly Budget
It’s important to look back and let the past help your decision-making moving forward. Reviewing your spending from the last year within the framework of a budget will allow you to identify excess spending and target discretionary funds. You can then use that knowledge to establish short and long-term goals for the new year while refining your budget moving forward.
Document your new budget in writing to hold yourself accountable for your spending decisions. Then review your monthly auto debits, memberships and subscriptions to confirm those are a continued worthwhile investment. It’s easy to allow those to hit your account each month without ensuring you’re getting good value. Finally, don’t forget to include those routine expenses in your monthly budget.
2) Examine Your Debt
Take stock of your current debt and find out where you can make headway, now and in the future, to pay that down. Knowing the rates on your debt and paying down those loans with a higher interest rate will allow for more financial freedom and stability down the road. It’s easy to push your debt off to your future self. Instead, make a sacrifice now. Your future self will thank you.
3) Inquire on Tax Matters
If you are in a position to, talk with your CPA to discuss maximizing your contributions while getting the most from any required minimum distributions (RMDs). Contributions might include IRAs, charitable giving, college savings plans, scholarship funds and Health Savings Accounts (HSAs). A trusted CPA will advise you on where to smartly place excess resources so that when Tax Day rolls around, you have put yourself in the best position possible.
4) Consult Your Investments
You can increase your financial well-being by reviewing your investment portfolio and being honest with yourself. Do you have the availability to increase your monthly savings? Have you maxed out your child investment accounts? Do your investments continue to meet or even exceed your goals? Knowing the answers to those questions could allow your money to work and grow for you.
5) Evaluate Wills, Beneficiaries and Insurance
The end of the year is a good time for you to evaluate your coverage and beneficiaries to ensure you and your loved ones are sufficiently card for. Learning about and utilizing all of the appropriate and related benefits for you will give you peace of mind now and allow you to plan for the unknown. Affirming and updating which beneficiaries are on your accounts and in your Will, properly insuring yourself and your family with health and life insurance and making a plan for remaining flex funds should all be parts of your annual check list.
All of these items might seem like hoops that are hard to jump through, and it’s okay to feel that way. That’s why it is important to have a trusted and close relationship with a financial expert who is willing to take an interest in you. We are proud to have a team of those bankers here at Mabrey who care for and educate our customers to make their finances easier to understand and manage. Our goal is to help you attain your financial goals.
Don’t hesitate to stop in your local Mabrey Bank and ask to talk to a banker. We’d be happy to help.