Can you believe itâs nearly the end of 2024? đ¤Ż
Itâs truly been an eventful year in business and life. Iâll be sharing my annual review with you in the next couple editions.
Today, in 5 minutes or less, youâll learn:
đ¤ 5 financial moves I'm making before 2025 hits
đĄ Why I'm reducing my real estate allocation in the coming year
đ Download your own year-end financial review checklist
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đ My 2024 Year-End Financial Checklist
Are you financially ready for the new year?
At the end of 2023, I shared my EOY financial checklist.
This is a comprehensive checklist that anyone can use to go from feeling lost to confident in their financial plan heading into the new year. đ
This year, Iâm going to shake it up.
In this edition, Iâm going to deep dive into the financial checklist items Iâm personally actioning before January 1, 2025.
Here are 5 examples of items on my list:
Review my 2024 savings and investment (target: 30%+ of my annual income)
Plan my 2025 529 and family sinking fund contributions (target: $25k 529, $10k family)
Rebalance investment portfolio (target: decrease my real estate allocation from 20% to 15% in 2025)
Calculate my rough 2024 tax bill (target: complete 2024 tax calculations and adjustments)
Research life insurance policies (target: buy one in Q1 2025)
Letâs get into it:
1/ Review 2024 savings and investment contributions đ
In the past, while I was a full-time tech worker, I regularly saved and invested 40%+ of my income.
In 2024, as a self-employed business owner, my income fluctuated a lot depending on the month.
So I didnât auto-invest and havenât kept track of my investment contribution %.
My action item:
I asked myself: did I save and invest at least 30% of my annual income?
After crunching the numbers, I looked at:
My business take-home pay: salary (after payroll tax) + distributions
Investment contributions (public equities)
Savings contributions (529, emergency, honeymoon, family)
This was a challenge to analyze because I donât track my spending religiously anymore and mix finances with my wife. But I landed on a rough calculation.
At the end of the day, I invested ~35% of my take-home pay (1) this year.
On top of that, I also contributed to various sinking funds. So not too shabby.
In result:
â Saved and invested over 30% of my income in 2024
