Year-end Financial Check-up: Are You on Track?

As the vibrant blooms of spring make way for the warm embrace of the approaching Kiwi summer, it's the perfect time for reflection—not just on the year that's been but also on the state of your finances. It’s the perfect time to ensure that your financial well-being is aligned with the goals you've set.

This review is an opportunity to align your financial habits with your goals. It's important to remember that financial outcomes can never be guaranteed. Proactive planning is about making informed decisions, understanding your financial situation, and preparing for different outcomes.


Consider Your Financial Goals:

Now is a good time to look at the goals penned down in the warm days of early January. Whether your goals were building your emergency fund, considering retirement savings options, or exploring different investment types, . Acknowledge your progress and analyse any goals not yet met to understand the factors involved. Remember, outcomes can vary, and past successes do not guarantee future results. Reflection is the bedrock of progress, shaping a more informed approach for the coming year.


Financial Health Indicators

Financial health involves more than just your bank balance; it includes various aspects such as budgeting, savings, understanding investment risks and returns, and managing debt. It’s a good idea to approach these areas with a clear understanding of your own financial situation and goals:

  • Budgeting: How well did you stick to your budget? Analyse your spending habits, identify any leaks, and consider adopting new budgeting strategies to help you manage your budget.
  • Savings: Evaluate the growth of your savings. Did you reach the milestones you had set? If not, what adjustments can you make to boost your savings rate?
  • Investments: Review how your assets have performed, keeping in mind that all investments are subject to market risks and their past performance is not indicative of future results.
  • Are your investments still in line with your risk tolerance and investment horizon? or is it time to rebalance your portfolio?
  • Debt: Assess your debt situation. Have you managed to reduce your liabilities this year? Emergency Fund and Insurance Review


A solid emergency fund and appropriate insurance cover are your financial safety nets. Evaluate your emergency fund's sufficiency—could it support you through unexpected events like job loss or health issues? It’s a great time to also review your insurance policies. Do they cover all the potential risks you might face? Are the coverage amounts adequate, and are there more cost-effective options available without compromising on the coverage


Retirement Planning 

No matter your stage in life, retirement planning is a critical element of your financial check-up. Analyse your current retirement savings. Review your retirement savings plan, understanding that it's important to consider various factors such as your personal financial situation, risk tolerance, and long-term objectives. If you're behind, consider increasing your contributions or exploring other retirement income strategies.


Setting Intentions for the New Year

With the insights gleaned from your review, set your financial intentions for the New Year. Outline clear, actionable goals using the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound. Create a roadmap for each goal and anticipate potential challenges.


Embrace Flexibility and Continuous Learning

The only constant in life is change, and this applies to your financial journey as well. Embrace flexibility in your planning, staying open to adjusting your strategies as your life circumstances and the economic environment evolve. Consider committing to continuous financial education—stay abreast of the latest financial news, trends, and tools that can empower you to make informed decisions.

In Conclusion 

Your year-end financial check-up is a pivotal step in maintaining and enhancing your fiscal fitness. It's a ritual that not only prepares you for the immediate future but also fortifies your long-term financial vision. As the sun sets on the current year, let it set on any financial habits that don't serve your growth. And as you bask in the warmth of the Kiwi summer, let the sunshine reflect the bright prospects of your financial future.

As we conclude this check-up, remember that financial preparedness is not a sprint but a marathon—a journey best navigated with patience, perseverance, and a proactive mindset. Here's to a financially healthy and prosperous year ahead!

Disclaimer: The information contained in this ebook is intended as a guide only and content in this blog article is not to be taken as financial advice. Disclaimer:

Any references to particular securities are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities and no warranty or guarantee is provided.
Nikko Asset Management New Zealand Limited (Company No. 606057, FSP22562) is the licensed Investment Manager of Nikko AM NZ Investment Scheme, Nikko AM NZ Wholesale Investment Scheme and the Nikko AM KiwiSaver Scheme. This material has been prepared without taking into account a potential investor’s objectives, financial situation or needs and is not intended to constitute personal financial advice, and must not be relied on as such. Recipients of this material, who are not wholesale investors, or the named client, or their duly appointed agent, should consult a Financial Advice Provider (FAP) and the relevant Product Disclosure Statement or Fund Fact Sheet (available on our website If you are a Financial Advice Provider (FAP) and would like to find out more, please contact our distributions team.



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