The end of the year is fast approaching, making it essential to review your financial priorities. Small actions now could have a big impact on your financial health next year. From making the most of your retirement contributions to strategic charitable giving, there’s plenty you can do. Get ahead of the curve and ensure 2024 ends on a high note for your wallet.
Shutterstock: xalienUse Remaining FSA Funds Before They Expire
Flexible Spending Accounts (FSAs) often operate on a “use-it-or-lose-it” basis, so check your balance. Eligible expenses might include medical copays, prescription glasses, or even first aid kits. Plan to use these funds before the year ends to avoid wasting money. Many accounts offer a grace period, but it’s often better to act now.
Optimize Charitable Giving This Holiday Season
The holidays are a wonderful time to give back and potentially lower your tax bill. Consider donating cash, appreciated stocks, or unused items to qualified charities. Keep records of your donations for tax purposes, including receipts and itemized lists. Strategic giving can help both you and the causes you care about.
Max Out Retirement Contributions
Maximizing contributions to your retirement accounts could reduce your taxable income this year. Check the limits for your 401(k), IRA, or other retirement plans. Even a small increase in contributions can boost long-term savings. If you’re 50 or older, take advantage of catch-up contributions to save more.
Review Your Investment Portfolio
Year-end is an excellent time to rebalance your portfolio and assess your investment strategy. Look at your asset allocation and ensure it aligns with your financial goals. Consider selling underperforming assets to offset capital gains, if needed. Staying proactive helps keep your investments on track.
Pay Down High-Interest Debt
High-interest debt can erode your financial progress, so you may want to prioritize paying it down before the new year. Focus on credit card balances or loans with the highest rates first. Making an extra payment now can reduce interest and improve your financial outlook. Consider consolidating debt if it simplifies repayment.
Plan Ahead for Tax Season
While you won’t have all of your tax documents yet, there are steps you can take now. Start by gathering receipts for deductible expenses like charitable donations or medical costs made throughout the year. Creating a checklist of what you’ll need can help reduce stress when the time comes to file.
Set Financial Goals for the New Year
Now is an excellent time to outline your financial goals for 2025. Consider both short-term priorities, like paying down debt, and long-term objectives, such as saving for retirement or a major purchase. Defining these goals early could help you create a roadmap for success. Setting clear intentions may keep you focused and motivated as the new year begins.
Prepare for a Financially Strong Start to 2025
Taking steps like these now positions you for a brighter financial future. Use this year-end checklist to maximize opportunities before the year ends. Proactive planning lets you enjoy the holidays with confidence, knowing your finances are in order. Make the most of this season and pave the way for a stress-free start to the new year.
