I wanted to share some of my favorite money tips for the end of the year. It’s the perfect time to take a look at your finances to start the new year off on the right foot.
With the holiday season in full swing, you may be tempted to put off looking over your finances until after the holidays are over. Now is the best time to sit down and make sure you are on budget for next year.
There are a lot of things you can do to control debt after the holidays but I wanted to share six things that I like to do to make sure I am financially prepared for next year as well as maximizing my tax deductions!
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Smart Money Tips for the End of the Year
Maximize Contributions to your Retirement Fund
Before December 31st, make sure that you have contributed as much as you can to your retirement fund. A higher contribution can lower your taxable income.
You can put up to $19,000 in a 401(k) and up to $6,000 in a Roth or Traditional IRA. People 50 and over can put an additional $1,000 in an IRA.
You want to contribute as much as you can as soon as you can so you don’t lose time in the market when your investment could be growing.
For more retirement tips, see how you can boost your retirement savings now.
Cancel Recurring Subscriptions
Look at your bank or credit card statements and see if you have any recurring fees that you can cancel before they renew next month.
This could be the gym membership you no longer use or subscription boxes that you really don’t need. Can you cut back on any of the monthly streaming services that you use?
By canceling everything now, you will be setting yourself up on a much better budget for next year. See how you can easily stop recurring fees from being taken out of your bank account each month.
More End of Year Financial Tips
Give to Charity
Not only will you be helping others, but you can save yourself a larger tax bill if you make all of your charitable contributions before the end of the year.
Check on the IRS website to see if the charity you plan to give to is eligible for tax deductions. If you are going to be making a donation of $250 or more, make sure to get a dated receipt that states the gift amount and a description.
The maximum amount you can give will depend on your income so check with an accountant to see how much you should give.
Once you know how much you can donate, you may want to consider setting up automatic monthly payments to your charity of choice for next year. This will help them plan out a monthly budget.
Use your Healthcare
The end of the year is a time where you have probably reached your health insurance deductible. Take advantage of the cheaper healthcare and make appointments for routine care or elective procedures that could cost more once January arrives.
Appointments may be easier to come by since November and December are typically less busy for most practices.
This is the perfect time to do a checkup on your finances and security. Since the holidays are prime time for identity theft and fraud attempts, do a quick credit score check. Make sure to check over your bank and credit card statements for any fraudulent charges.
When shopping, look for websites that start with https at the beginning of the URL to confirm that they are secure. You may also want to delete any credit card or personal information from your browser by going to Preferences to delete data and turn off autofill.
By doing some quick credit checks and maximizing your tax deductions, these money tips for the end of the year should put you on much better financial footing so you can start the new year off right.
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