Finish Strong: Smart Money Moves to Make Before Year’s End
The end of the year is quickly approaching and it’s the perfect time to make some smart money moves. From maximizing your retirement contributions to reviewing your budget, there are several ways to make the most of your money before the calendar resets. By being proactive and planning ahead, you can ensure that you’re not leaving money on the table or making financial missteps that could cost you down the line.
Use up FSA and Dependent Care fund
The money in these accounts must be used by the end of the year or you risk losing it. Consider stocking up on medicines, eye care products, feminine products, and the like with your FSA funds. Don’t forget to file your dependent care claims. These funds can be used for before and after school care, daycare, and lessons like dance, music, and sports. Funds left in these accounts do not roll over so make sure you file your claims by year’s end.
Get seen before deductibles reset
If you put off those appointments until the new year, your insurance deductible will reset, and it will cost you more out of pocket. If you haven’t had your annual physical, eye exam, or dental exam, schedule it now. Additionally, take advantage of this year’s insurance benefits like glasses, contacts, and teeth whitening now. Otherwise, you’re leaving those benefits that you’ve paid for all year on the table.
Max out your contributions
Don’t forget to contribute to your 401k and IRAs. Putting money toward these accounts reduces your taxable income, which can help you get a bigger refund or minimize your tax bill come April. Maximizing these annual contributions now will result in more money in your pocket later.
Take advantage of annual tax credits
Many states offer tax credits for donations to charities, schools, political programs and more. You can help support these causes with your donations and then, come tax time, get credit for your donations. Make sure to research credits and qualifications in your state to make the most of your donations.
Slim your subscriptions
TV apps, magazines, phone, and tablet apps… these small monthly fees can add up quickly. Cancel anything you’re not using or don’t need now to start the new year on the right foot.
Review your budget
If you haven’t done so in a while, it’s the perfect time to review your budget. Update any income changes, debt amounts, and monthly expenses. Take time to review areas where you can cut spending to use the money to put toward debt or saving instead. Use this as an opportunity to set yourself up for success for your financial resolutions for the new year.
Ending your year with these money moves can help you finish strong and start the new year with confidence. From utilizing your FSA and Dependent Care funds to taking advantage of tax credits, now is the time to make last-minute moves that will benefit you well into the future. Taking these actions not only helps reduce your tax burden, but also sets a solid foundation for meeting your financial goals in the year ahead.
By Rachel Caballero | TruWest Credit Union
