It can be fun and even eye-opening to watch those year-end montages reminiscing about the year. If you ever have that moment when you say to yourself, “Wait, that was this year?”, you could also imagine how easy it could be to lose track of the goals and financial plans you set in motion when the year began. Life can change quite a bit in a year, especially as a MilSpouse, and so can your finances. The end of the year is a great time to conduct your own year in review to evaluate what’s working well, see where you can improve, and set new goals for the year ahead. Here are some tips and resources to help you get started.

Take Inventory and Update Your Net Worth

Start your review with an inventory of your current finances to get a clear picture of your financial situation.

First, gather your account statements. Record balances for all bank accounts (include checking and any savings) and investments such as the TSP, 401(k)s or 403(b)s, IRAs.

Second, determine the value of significant non-liquid assets. This includes items such as the value of your home, car(s) or business. Current fair market values can be looked up online for some of these items.

Next, determine what you owe. This includes your mortgage, car loan, student debt, credit card balances, and more. You will want to know the total amount owed, not the monthly payments. If you pay off your credit card every month, then there’s no need to include the current balance in this calculation.

Lastly, determine your net worth. Simply add up all your assets, both from your account statements and the value of your non-liquid assets. Then subtract what you owe. If your net worth is negative, then you have more debt than the value of your assets. A negative net worth is very common for younger Service members, especially those with student loan debt. Over time, with saving and financial discipline you can see your net worth grow. We have a guide to help you pay down that debt and strive for a positive net worth in time.

Review and Update Goals

Review this year’s goals: Compare your current financial inventory with what you planned to accomplish this year. If you’ve met most of your goals, give yourself a pat on the back! If you didn’t, don’t worry. Give yourself some grace and move on to doing better next year.

Update goals or set new ones: What do you want to achieve over the next 12 months? Save for a new car? Pay down debt? Build up your emergency fund? Whatever you decide, make sure your goals are SMART – specific, measurable, attainable, relevant and time-bound.

Take Action

Once you’ve set your goals for the coming year, taking these actions can help you achieve them.

• Scrub your budget and get lean to achieve goals. Identify any waste in your budget that can be repurposed to increase savings, pay down debt, make a major purchase, etc.
• Review your spouse’s Thrift Savings Plan and any other investment allocations to ensure they remain aligned to your risk tolerance and goals timeline.
• Life happens, so build up your emergency fund. Aim to save three to six months’ worth of living expenses in an easily accessible account, like a high-yield savings or money market account. Make regular contributions until you reach your goal.
• Shop insurance companies to look for lower rates or explore any new coverage needed if you discover gaps.
• Update beneficiaries on all accounts and insurance policies, as needed. If you’re newly married, ensure your beneficiaries reflect your current situation.
• Review and update your will and other estate documents, as needed.

Taking the time now to see your financial picture clearly can lead to future success. If you build this habit into your year-end routine, you will see a trend line and be able to track your progress over time.

Do you have questions about conducting a review? A Personal Financial Counselor on your installation can help you with this and other money topics at no cost.

MilSpouse Money Mission® is a Department of Defense resource that offers FREE personal financial education specifically geared toward military spouses. There is a Money Ready guide for various stages of financial life, a MilLife Milestones section to help you through the big moments in your military journey, a blog, spouse videos, quizzes, calculators and more!