5 End of Year Financial Chores to Tackle
Santa checked his list, he even checked it twice, and now it’s your turn to check things off your financial to-do list. If you want to start the new year off on the best foot possible, carve out a few hours to complete all of your financial chores. That way, you can ring in the new year knowing you are in control of your finances and are on track to meet your 2023 money goals.
Make Retirement Contributions
While you have until April 18, 2023 to make IRA contributions, you only have until December 31, 2022 to finalize your 401(k) contributions. Even if you are focused on IRA contributions, it’s still a good idea to make all of your contributions by the end of the year. That way, you can move forward in 2023 with a clear budget for retirement contributions for the new year without having to worry about playing catch up on 2022 contributions.
2. Pay Off Your Credit Card
Gifts, travel, decor, and hosting parties all contribute to the festive feel of the holiday season, but they can also cost a pretty penny. Which is why it can be great to charge these expenses on your credit cards. Who doesn’t like to earn cash back and travel points? The key here though is to not accidentally carry a balance that leads to hefty interest fees. Before the end of the year, pay off all your credit card balances so you can start the new year with a clean slate.
3. Make Your Tax Appointment
December may seem a little too early to start worrying about tax season, but once spring rolls around, you’ll feel much more relaxed knowing you’re a step ahead of everyone else. Contact your accountant to schedule your tax appointment. They’ll be happy to see their schedule start to fill up early and you’ll get your top choice for day and time. You can also schedule it nice and early so you don’t have your taxes hanging over you until April. Now is also a great time to start thinking about the deductions you want to make and getting organized there.
4. Create a Fresh Budget
Take a cold hard look at how much money you spent last year. Inflation likely caused you to spend more than you’re used to, so now is the perfect time to give your budget a major overhaul. When reviewing your spending, think about where some easy places are to cut back (dining out, subscription services, impulse Amazon purchases, etc.). Creating a new budget isn’t just about cutting expenses, you can also focus on expenses you want to add in. For example, increasing monthly debt, retirement, or savings contributions can all find a place in your shiny new budget.
5. Set New Financial Goals
Think carefully about how you feel about your current financial situation. As you ring in the new year, do you feel happy with the progress you made last year? Do you feel excited about what the new year will bring? How did your priorities change throughout the year? There is no time like the present to set new savings goals for the coming year. For example, if you became a grandparent for the first time, you may want to start contributing to a 529 plan for your new grandchild. Set some new financial goals for yourself so you start 2023 with focus and drive.