Before you start the new year with resolutions and money intentions, it’s a best practice to look back at the prior year and give yourself a performance review on how you did at meeting last year’s financial goals.

Here are 4 parts to include in your Personal Financial Year-End Review.

PART ONE - UPDATE YOUR BALANCE SHEET

First, compile your 12/31 account balances and asset values. This includes cash on hand, money in checking and savings accounts, as well as investments accounts like your retirements savings and brokerage accounts. Update your balance sheet with the current values of your home(s) and vehicles. Second, update your current liabilities. This includes how much you owe on your mortgage, auto loan(s), and any other outstanding debt. Next, Subtract your total assets from your liabilities. This equals your current net worth. Did your net worth grow from what it was one year ago?

PART TWO- CELEBRATE YOUR ACCOMPLISHMENTS

Now is the time to celebrate what went well. What are the financial successes you achieved last year? Did you get a raise at work? WOO HOO! Did you pay off your mortgage or credit card debt? BRAVO! Did your daughter graduate college and get her first Big Girl Job? KUDOS to you both as she moves off your payroll! What money goals did you set for yourself that you met? Did you increase your 401(k) contribution at work? NICE WORK! Did you stay on track with your Spending and Fun Money? WTG! Were you able to be more philanthropic towards the charities and causes most important to you? WELL DONE!

PART THREE- REVIEW UNMET GOALS

A critical part of any year-end review includes analyzing where you fell short of your goals. What unplanned expenses popped up last year? Take a look at what items were unaccounted for in your original budget. How did you cover for those expenses last year as they happened? Did you use a credit card or dip into savings? The answers will help you create new financial goals, for example “Replenish Emergency Savings” and ensure you’re adequately covered for the “next time” and “what-if” expenses in your future budgeting.

What financial barriers prevented you from meeting your goals? In addition to unplanned expenses, what else impacted your ability to meet your financial goals for Spending, Saving, Investing, and Giving? Inflationary costs on groceries, rising interest rates on mortgages, and stock market fluctuation are all circumstances outside of our control. Experiencing a life event such as job loss or death of household breadwinner can also have significant consequences for you and your finances. Before creating any new personal wealth goals, pause and reflect on your experiences from the previous year.

PART FOUR- IDENTIFY YOUR RESOURCES

As you look ahead to where you want to go on your personal wealth journey, identify WHO and WHAT you need to get there.

• Do you want to increase your financial literacy? Consider hiring a financial coach that can point you towards books, courses, and vetted online resources. Empower yourself with knowledge.

• What sources of income are available to you? You may want to consider a side hustle or part-time job for additional money to pay down debt or put towards savings.

• Do you need an accountability buddy? Just like with fitness routines, sometimes having a friend or partner on your financial journey can be your best motivator on those days of doubt.

• Do you need a system or process to put in place? Consider hiring a financial planner that can help you create financial goals and guide you through what steps to take.

Make time and give yourself a proper Personal Financial Year-End Review before jumping into new year goals and resolutions. You work hard to stay on track with your financial goals and this is an important and rewarding part of your personal wealth journey.