Just like your physical health, your finances deserve a proactive checkup to keep any nasty surprises to a minimum in this new year. It’s not a process to dread, but rather an opportunity to reflect, reassess, and renew, says Kendall Capital President and CEO Clark Kendall, CFA, AEP, CFP. What’s still working well? What do you need to change? What milestones does 2022 have in store for you and your family that present new choices? Here are eight suggestions to get you started.

1. Review your financial plan. Does it still reflect your personal goals? A financial plan is a living document. This is the perfect time to revisit and adjust it. Having a plan in place will make it easier for you to track your progress throughout the year and will help you set specific short- and long-term goals and develop clear strategies on how to achieve those goals. (Don’t have a financial plan yet? Get one!)

2. Create a spending plan. What’s the difference between a “spending plan” and a “budget?” Budgets often feel restrictive, complicated, and rigid. A spending plan, on the other hand, is a realistic roadmap for how you’ll spend your money, starting with paying yourself first by treating contributions to savings and retirement accounts like any other household bill. Once you work out how much you’ll “pay yourself,” you’ll know how much is available for non-discretionary expenses like housing and utilities. Then you can spend the rest on whatever you like. This approach is quite effective at helping you spend mindfully without overly restricting yourself.

3. Double check your contribution to your retirement plan at work. Periodically, the IRS increases the maximum allowable annual contribution to employer retirement plans, so New Year’s is a great time to double check that you’re making the most of your plan. For 2022, the 401(k)-contribution limit has been increased to $20,500 (the catch-up contribution for those over 50 remains the same for this year, at $6,500).

4. Forget to fund your IRA or HSA last year? Don’t panic—there’s still time! You have until April 15, 2022, to make a “prior year” contribution to a Traditional IRA, Roth IRA, or Health Savings Account (HSA) for 2021. You can stash away up to $6,000 in an IRA for 2021 ($7,000 for those over 50). The 2021 HSA contribution limit is $3,600 for single coverage or $7,200 for family coverage (plus an extra $1,000 if you’re over 55).

5. Spend down your FSA. If your employer offers a grace period to use up Flexible Spending Account (FSA) funds from the 2021 plan year, that grace period expires March 15. Check out the list of eligible medical expenses at: https://fsastore.com/fsa-eligibility-list.aspx

6. Check on your credit report. You can get a free copy of your credit report from www.annualcreditreport.com. You can also regularly monitor new activity and alerts on your credit through Credit Karma. They also provide helpful tips for building credit, but they’re funded by affiliate links for credit card companies, so be wary!

7. Review your insurance policies. Make sure you’re not over- or under-insured. Review all your policies—homeowner’s, auto, disability, life, and long-term care insurance. Are the limits adequate? Should the deductibles be raised? Is there a less expensive policy with similar coverage? Are you taking advantage of all the discounts offered to you by your insurance providers? Websites such as www.insurance.com and www.policygenius.com provide quotes from several insurers so you can compare and find the best coverage for the best price.

8. Hire a fee-only fiduciary advisor. There are two types of financial advisors: those who have a vested interest in selling you certain products and services, and those who are independent (because their compensation comes from clients, not from companies that expect them to sell). Having an independent, trustworthy professional in your corner can help you reduce stress, build confidence, and feel empowered to spend your money as you see fit.