A year-end budget check-in gets you ready for 2025

SUWANEE, Ga. - If you're getting ready to make a list and check it twice, don't forget one more list: your year-end financial "to-do" list. It’s not as daunting as it sounds—knowing how to manage your money in 2025 can actually be freeing.

We spoke with financial advisor Abby Reed, who has a practical and approachable philosophy on saving money.

"I don't really adhere to the no lattes, no avocado toast, and that's going to solve all your problems. I don't think that's the case," she said from her Suwanee office.

Don’t get her wrong—the co-CEO of Reed Financial Group believes in budgeting, managing money wisely, and having an emergency savings account. But she also emphasizes enjoying life.

"I think picking categories that you really value—whether it's travel or maybe gifts for your loved ones—is key. Pick what you really, really value, then go through your expenses, see where your money is going, and cut out things that don't mean that much to you," Reed explained.

See? That makes money management sound almost fun. But to get to the fun part, you need to tackle a necessary chore: a year-end financial check-up. Whether it’s a budgeting meeting with your partner or focused alone time, it’s worth putting in the effort.

"It's like a financial date, sort of," Reed said. "That’s how I look at it. It’s about sitting down for a set amount of time—30 minutes to an hour—with a checklist of what you’re going to review."

And she’s even created the checklist for you:

Tweak your budget for the new year. Reassess your monthly expenses and make sure everything still works. Believe it or not, some find they have more money at the end of the year as inflation decreases and raises kick in.

Check your retirement savings. Is it on track? Contribute more if possible.

Contribute to your education fund. In Georgia, many take advantage of the 529 Plan.

Add to your HSA or FSA. These pre-tax accounts can help cover medical expenses.

Build up your emergency fund. Layoffs are still a concern, with more expected in the first quarter of the new year. Aim for three to six months’ worth of savings.

Schedule a time for this financial check-up. Put it on your calendar and commit to discussing it with your significant other or financial advisor.

"If we don't have a designated place on our calendar for this financial check-up," Reed said, "then it gets put at the bottom of our checklist."