End-of-Year Financial Moves
As we draw toward the end of the year, it’s a great time to take a step back and review your finances. With just a few weeks left, you can still make moves that will set you up for a stronger financial future. Here are some key things to do before ringing in the new year:
1. Review Your Budget and Expenses Take a look at how you’ve been spending this year. Are there areas where you’ve been overspending or saving more than expected? A quick budget review can help you make adjustments before year-end and give you clarity on where your money’s going. It’s also a great time to plan for any major expenses that might be coming up in the 2025.
2. Max Out Your Retirement Contributions If you haven’t already, try to contribute the maximum allowed to your retirement accounts like a 401(k) or IRA. This can reduce your taxable income and help boost your retirement savings. The clock’s ticking, so don’t leave this on the back burner!
3. Check Your Tax Situation No one likes surprises come tax season. Take a moment to estimate what you might owe or get back. If you’ve had a significant life change—like a new job, marriage, or home purchase—adjust your withholdings accordingly. You might also want to contribute to tax-deductible accounts, like an HSA, if eligible.
4. Give Back and Benefit from Charitable Deductions If you’ve been thinking about making a charitable donation, year-end is a perfect time. Charitable contributions are tax-deductible, which can help reduce your taxable income for the year.
5. Set Financial Goals for the New Year Lastly, think about where you want to be financially next year. Whether it’s paying off debt, starting a savings plan, or investing more—setting clear goals will help you stay focused and motivated as you enter the new year.
A little time spent on these simple tasks can have a big return on investment, so take advantage of the remaining days of the year to set yourself up for success.
For further reading, try this checklist: What Issues Should I Consider Before the End of the Year?
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