The end of the year is just around the corner. Before you hit the holiday season, make yourself prepared to withstand the shopping season and celebrate the New Year happy and worry free. Are you ready to set new resolutions? Before you move forward, spend some time to plan out a strategy with these smart steps for your finances and lifestyle that will save you money and safeguard you from any money problems during the winter holidays.
Pay off your dues and credit cards
Holiday expenses could push you into debt. Instead of accumulating more, trim down any of your pending bills, payments and start paying off any Phoenix title loans that you may have. As per a report about 25% of credit card users sought for help because of heavy bills in the first months of the year. Massive debt can lower your credit limits and hurt your credit score as well. Pay your existing debt so that it won’t pile up into something you can’t manage or afford.
Contribute to a health savings account
With a health savings account you can collect tax benefited money which you can use for medical expenses, and that money can pass over to coming years. It ensures that you have enough money accumulated for next year’s medical expenses which could make you worry free in advance.
Contribute towards charity
Contributing to a good cause with significant donations to some needful organization not only provides you with inner happiness but also lowers your tax liability. By specifying in your deduction, charitable donations can provide you a tax benefit which pushes you towards better financials.
Manage your portfolio
It’s a good time to check on your investment portfolio and see if you need to rebalance it. Often people don’t consider rebalancing their investment portfolio, but with some careful planning and financial consulting, you can reduce those fees as much as possible while gaining future earnings.
Expand your retirement contributions
Retirement funding should not be neglected and should increase over the years. So if you have not allocated funds to your retirement account, then there is no time to wait to contribute as much as you can. Based on the type of account you hold, whether 401K or IRA you could add anywhere from $5,500 to $18,000 to your retirement savings account. Accumulate until April to add up more benefits to your contribution, but it’s worth contributing from now on so that you won’t get burdened by upcoming holiday expenses.
Sneak peak your money moment
Without proper budgeting, you won’t be able to know where your money is going. This makes it tough for you to make necessary adjustments and to allocate towards what matters you most. Track your money flow and use as per your priorities and adjust accordingly for the coming year.
Work on an emergency fund
Sometimes even proper planning could fail and doesn’t work out as well as you thought. You could end up looking for the best payday loans, so build a strategy for the best and the worst scenarios by gathering a contingency fund from now on. By accumulating a minimum of three months of your living expenses, you won’t go into debt if any uncertain circumstances happen. By putting aside an emergency fund every month, you will be worry free for next year.
Harvest tax losses
You might have sold some shares this year; you may get a benefit from capital gains taxes. Tax loss harvesting can be a great use for investors who have kept their money in non-retirement accounts like mutual funds. It’s worth moving forward with maintaining stock investments before the holiday rush hits and it gets skipped away.
Transfer money into a savings account
Put some of your funds aside, if you want to avoid adding more debt. This money can be used as a backup if it’s away from your eyes you will be prompted to spend less. Set up an auto transfer to your checking account so that cash gets pushed to your saving account and you can gather a good amount before the winter holidays hits.