Just as financial planning is not a one-time event, it's not a once-a-year event either. Spreading tasks throughout the year can make them more manageable.
Following this month-by-month guide can help get your finances in tip-top shape.
There are actions you can take each month to keep your finances on track throughout the year.
January
Resolve to make yourself financially fit this year
Manage your debt. Start by paying off all your high-cost, non-deductible credit cards, and then establish an emergency fund equal to 3-6 months of expenses
Check your employer retirement plan contribution percentage
1st Medicare Open Enrollment and Advantage starts (ends March 31)
15th: Pay your estimated taxes
February
Check your insurance policies to be sure you're not paying too much or for the wrong coverage
Start organizing your 2020 taxes
March
If you turned 70 1/2 last year and didn't take your first-year required minimum distribution (RMD) from your IRA by December 31, you have until April 1 to do so
Get a free annual copy of your credit report from one of the three major reporting agencies on a rotating basis
14th: Turn your clocks ahead!
31st Medicare General and Advantage Open Enrollment Period Deadline
April
1st: Your last day to take your first IRA required minimum distribution without penalty
15th: File your taxes or apply for an extension
15th: Pay your Q1 estimated taxes
15th: Also the last day to contribute to your IRA for the prior year
May
17th New Deadline to file your taxes or apply for an extension
Create (or update) an inventory of your home and personal property
Create (or review) your financial disaster plan
June
15th: Pay your Q2 estimated taxes
20th: Longest day of the year. Enjoy summer!
Perform a mid-year review of your finances to be sure you're on track
Are you on track with your retirement contributions and other savings?
Run a projection of your income taxes to be sure you are not paying too much or too little income tax
July
Get a free annual copy of your credit report from one of the three major reporting agencies on a rotating basis
Keep learning- add at least one good book on personal finance or investing to your summer reading list
August
Start thinking about your holiday budget
As the kids or grandkids get ready for school, consider establishing or contributing to a Coverdell Education Savings Account and/or 529 College Savings Plan on their behalf
September
15th: Pay your Q3 estimated taxes
30th: Last day to determine beneficiaries after an IRA owner's death
Begin Final quarter tasks (Listed below)
Review your estate plan
If you want to establish a simple IRA this year for your small business, the account must be opened by October 1
You have until October 15 to re-characterize a Roth IRA conversion
October
1st: Extended trust and estate tax returns due
15th Medicare Advantage and drug plan open enrollment starts (ends Dec. 7)
15th Extended individual tax returns due
15th Last day to re-characterize a Roth conversion
Run a projection of your current-year income tax liability to get a head start on your year-end tax planning
November
7th: Turn your clocks back!
Get a free annual copy of your credit report from one of the three major reporting agencies on a rotating basis
Take time to give thanks for another year of financial success. Review your charitable giving program and consider making tax-deductible gifts to charity
December
31st: Last day for stocks, RMD's, itemized deductions, & gifts to count for 2021 taxes
If you want to establish an individual 401(k) or other qualified retirement plan for your small business, the account must be opened by December 31
Request your annual Social Security benefit statement from ssa.gov
Final Quarter Tasks
Project income for 2019 and 2020
Review unrealized investment gains and losses
Collect cost-basis information on sold investments
Review sales of appreciated properties
Review potential credits and deductions
Track donations to charity
Take required minimum distributions
Review Medicare enrollment options
Review your fund trusts
Contribute to college education accounts or gift cash to family