The last weeks of the year are a good moment to take a quick look at your own finances. Not because anything is complicated — but because a few things are genuinely tied to one fixed date: December 31st. Miss it, and you sometimes pay unnecessary tax or let money go to waste that was already paid for. Don't worry: none of this is difficult. All it takes is a quiet quarter of an hour and perhaps a look at your online banking.
Check your tax-free savings allowance, so too much tax isn't deducted from your interest
If you hold money in a savings account, a flexible savings account, or in investments, you earn interest or other investment income on it. That is simply a general term for money your savings generate by themselves, for example through interest. In Germany, this income is generally subject to a tax on investment gains. However, every person is allowed to keep a certain amount of investment income tax-free each year. This tax-free amount is called the saver's allowance.
So that your bank automatically applies this allowance instead of simply deducting tax from every interest payment, you need to file an exemption order with it. This is a simple form, usually fillable directly in your online banking area, through which you tell the bank: "Please don't deduct tax up to this amount — I am legally entitled to it."
Towards the end of the year, it is worth taking a quick look: did you actually submit this exemption order? If you use the allowance across several banks, it might currently be split unevenly, either too high or too low at each one. If you opened a new savings account during the year, for example through an overview of savings options, you should set up the exemption order there too — otherwise that account gets taxed without any allowance, even if you still had room left overall. Mistakes here cost you, at most, a bit of overpaid tax, which you can claim back through your tax return. Nothing is truly lost, only time and a bit of effort.
Review contracts and subscriptions
Many contracts automatically renew for another year at year-end if you do not cancel them in time. Take a moment and look through your account statements to see which standing orders or automatic payments go out monthly or yearly. A standing order is a payment that is taken from your account automatically and regularly, without you needing to confirm it each time. You might discover a streaming subscription you have not used for months, or a membership you had long forgotten about.
If you are considering reorganising or switching your current account — your everyday account for salary, rent and shopping — the turn of the year is a practical time to do it, since many standing orders need to be set up again anyway. You can find an overview, for example, under current accounts. If you have a running loan, now is also a good moment to check whether your terms have changed, or whether comparing options under loans might be worthwhile.
Use unused vouchers and gift cards before they expire
Many vouchers and gift cards have an expiry date, often right at the end of the year. Check your drawer, your wallet, or your email folder for anything unused lying around. That is already money you paid for — it would be a shame to simply let it expire. One safety note: be careful if someone calls or messages you claiming you need to read out a voucher code over the phone to "activate" or "pay it out." That is a common trick used by scammers. A genuine bank or provider never asks you to read out a code over the phone.
Put standing orders and savings plans to the test
Many people save automatically throughout the year, for example through a fixed amount that moves into a savings account every month. Towards the end of the year, check whether that amount still fits. Has your income increased over the course of the year? Then you might be able to raise the savings amount slightly. Did you have unexpected expenses? Then it is perfectly fine to lower the amount for a while. There is no "correct" number here — only the one that realistically fits your everyday life.
A short look back, to plan next year's budget
Finally, it is worth taking a calm look back: what did you spend the most on this year? Were there months with particularly high costs, for example for gifts, travel, or repairs? You do not need a complicated spreadsheet for this. It is enough to skim through the last twelve account statements and jot down the biggest items. This short review helps you plan more realistically for the new year, instead of just guessing.