With just days left of 2019, many people are wondering if there are any financial moves they can still make. Before the new year begins, there are certain financial opportunities to take advantage of. Instead of looking to lose weight and learn new hobbies next year, it is a great time to form healthier money habits than can pay off the rest of your life.
Minimize Taxes
If you decided to cash in on some of your investments this year, you will end up paying hefty taxes on those when the time comes. To minimize the tax impact, consider selling some of your assets that lost value this year. This strategy is referred to as tax-loss harvesting. Selling assets when they are at a loss can make up for some of your investment gains. This will reduce your tax liability. This technique can be done at any time of the year, but you can make use of it until December 31st.
Budget For Goals Next Year
Think about your goals for the coming year. Are you planning to purchase a new vehicle or take a vacation? No matter what you plan to save for, it is never too early to begin budgeting for the cost. Be specific about your goals and the money needed to afford them. If you have an emergency fund, don’t dip into it for your goals. Your goals should be saved for separately.
Re-evaluate Your Cash Flow
To create a solid budget for the coming year, it is important to understand how you spent your money this year. If you have kept track of your money, you can easily go through your expenses to see how much money you spent on things. If not, comb through your finances to see where your monthly finances went.
Check Beneficiaries
While taking time to organize your financial life, be sure your death benefits are in order. Check to see who your beneficiaries are for your life insurance and retirement plans. Any incorrect information should be fixed right away.
401(k) Contributions
If possible, look for ways to increase your retirement contributions. Speak with your employer to find if you can increase your pre-tax contributions. Assess your budget to find room to put more money into your retirement savings. If you have another paycheck coming before the end of the year and have not contributed the full amount, pay as much as possible into your savings.
Further Reading: https://www.cnbc.com/2019/12/23/last-minute-financial-moves-to-make-before-year-end.html
Dil Bole Oberoi
