As this year comes to a close, this is a perfect time to look at your finances. Now is the time to fall into a better financial position. Don’t wait until the new year or the next few months. All of your financial decisions and activities have an effect on your financial health now and in the future. The time should be now. I would like to share 4 tips that can help you fall into a better financial position before the New Year.
- Review your budget for the remainder of the year… or create one.
Do you have a working budget for your personal finances? Has your spending fallen in line with what you planned for the rest of the year? Do you have a spending budget for the holidays? Do you need to adjust your spending for the holiday season? These are all valid questions approaching year-end and the holiday season. Take some time to evaluate what you have. You can start looking ahead to next year’s budget and make modifications based on your findings.
- Create a holiday budget.
Create a holiday shopping list, set a spending limit for each person and only buy for who’s on it. Leave your emotions at the door. With sales and deals in every retail window and ad, it’s easy to get sucked into purchasing items that you never planned to buy. Using the money you have set aside in your budget, or using cash you have readily available (don’t use credit), create a cash-only holiday budget – and stick to it! Keep track of your spending. Remind yourself of all other debt responsibilities like your car payment, rent or mortgage, etc. that will be still be due after the holiday season.
- Get a head start on year-end tax preparation.
Tax time will be here before you know it. Year-end time before Jan/Feb tax filing is a good time to make last minute adjustments and prepare for the next tax year. This is a good time to do the following:
- Review your tax withholdings and make any necessary adjustments.
- Start to gather all your tax documents from the year. Most annual tax reports are mailed in January by the 31st.
- Maximize retirement contributions.
- Pay any estimated tax payments that may be required as a business owner or independent contractor.
- Schedule an appointment with MPA Financials.
MPA Financials is committed to helping you build a solid foundation for your financial future. We would like to meet with you to discuss your financial endeavors throughout this year as well as start planning for the next year. A full year financial analysis can be to help provide customized solutions. So let’s schedule an appointment to create some money goals.