Taking A Look Back: Reviewing Your Finances From The Past Year

Looking back on the past year is a great opportunity to assess and reflect on all that you have achieved, but the end of the year is also the perfect time to take a step back and review your finances. 

It’s an opportunity to reflect on what worked, what didn’t work, and where you can make improvements. By taking a closer look at your financial situation, you can set yourself up for future success and make sure you’re on track with your goals.

Now is an important time to review your finances and set yourself up for the year ahead. Here’s how you can do just that, with a few simple tips on reviewing your financial situation from this past year.

The first step in reviewing your finances is to gather all of your financial records. 

This means everything from bank statements and credit card bills to investment account summaries and tax returns. 

Once you have all of this information in one place, it will be easier to review how much money you made, how much money you spent, and where that money went.

Another important part of reviewing your finances is analyzing your spending habits. 

Take a look at where most of your money goes each month—are there any areas where you can cut back? Are there any areas where it might make sense to invest more? Are there any unexpected expenses that seem out of place? 

Make a list of all income sources (including salary, bonuses, investments etc.) as well as expenses (including rent/mortgage payments, bills, groceries etc.). Break down each expense into categories such as “necessities” (rent/mortgage payments) vs “discretionary” (dining out). 

These questions will help give you insights into how best to manage your finances going forward and ensure that they remain on track with your long-term goals.

Once you have gathered all of your financial documents and looked at your spending, it’s time to set some goals for yourself. 

Start by making a list of short-term and long-term goals, such as saving up for a vacation or retirement. These will act as benchmarks that you can use to measure your progress through1qout the year.

Make sure these goals are SMART—specific, measurable, achievable, relevant, and timely. 

For example, if you want to save more money this year than last year, decide how much that amount should be and by when you want to reach it—this could be within the next month or six months or a year from now. 

Then make sure that those goals are achievable within those timelines using the resources available to you.

It's important for everyone - no matter their income level - to take time each year to review their finances from the previous 12 months.

Taking some time each year to review our finances can be incredibly beneficial for both our short-term budgeting decisions as well as our long-term planning strategies. 

It's important to see where your finances stand at the end of each year and can help make managing them easier. 

With just a few simple steps like these ones outlined here today, anyone can develop better financial habits and get their finances in order for 2023.