Time often slips away from us, and this year has been no exception. As winter looms and a new year is on the horizon, it might be a perfect time to look closely at different areas of your life. The approaching New Year often ignites a desire to set forward new objectives and aspirations; hence, it’s the prime moment to decide which areas you want to focus on in the upcoming year. It would be particularly beneficial to examine your financial state.
Although you may be planning to get through the holiday season before tackling your finances, several wise financial choices can be made before the year ends that could prove to be beneficial. Don’t procrastinate; instead, use the remaining time to forge the best possible financial future for yourself as you transition into the new year. Here are seven wise financial steps to consider as the year draws to a close:
1. REVISIT YOUR OBJECTIVES: Now is the time to review any financial objectives or resolutions you have laid out earlier in the year. Check your progress, identify successful strategies, and determine the ones that didn’t work out. Celebrate any achieved goals, and set new targets for the upcoming year, along with a plan on how to achieve these financial aspirations.
2. INCREASE YOUR RETIREMENT SAVINGS: While many people have an automatic deduction set up for their retirement funds, this may not allow for maximum contributions to your 401(k) and IRA. To bolster your retirement savings, consider maxing out your retirement accounts. Contributions are tax-deductible, which can reduce your taxable income.
3. SCRUTINIZE YOUR INVESTMENTS: As the year ends, reassess your investment portfolio. Evaluate the performance of your stocks and funds, and consider selling any poorly performing assets to explore more profitable opportunities.
4. PRIORITIZE YOUR HEALTH: If you haven’t visited your doctor recently, now might be the time, especially if you’ve already met your insurance deductible. Your insurance resets soon, so make the most of it while you can.
5. LOOK AT YOUR HEALTH INSURANCE AND ESTATE PLANS: The end of the year is an ideal moment to reassess your health insurance and estate plans. If you’ve experienced significant life changes, such as marriage, birth of a child, or divorce, these plans may require adjustments.
6. MAKE A CHARITABLE CONTRIBUTION: Don’t let unneeded or unused items clutter your home. Donate them to a charity and you may be able to claim a tax deduction.
7. TOP UP YOUR EMERGENCY FUND: Ensure your emergency fund is well-stocked and ready to handle any unexpected situations that may arise in the new year.
While the end of the year is approaching swiftly, there’s still enough time to make these critical financial choices. The tough part is dedicating the time to get organized and revisit your finances. If tackling all these steps seems daunting, focus on the ones that are most relevant and beneficial to your financial situation. Even completing a few of these tasks could significantly benefit your financial stability. Use any spare moments you have to lay a solid foundation for the upcoming year.
