Fall Into Financial Success: Smart Preparation for the Season Ahead
Summer is almost gone, and the smell of pumpkin spice is wafting through the air. As we head into the final stretch of 2023, we wanted to outline a checklist of financial moves to make in the coming months to ensure that your financial house is in order before year end:
Give yourself a financial tune-up. Fall is the perfect time to go through your finances with a fine-toothed comb because you’ve still got some time before the end of the year to make changes. Take a close look at your budget and expenses and identify areas where you can cut back or reduce unnecessary spending. As the year comes to an end, it's an excellent time to assess your financial goals and adjust as needed.
Double check your Emergency Fund: Do you have too little, or too much in your emergency fund? Having a financial safety net is critical to protect you from unexpected expenses and provide peace of mind. Occasionally, however, good savers can accumulate more cash than is optimal that could be better used elsewhere. This is a good time to assess your current emergency fund balances.
Review Insurance Coverage: As we enter open enrollment season, make sure your insurance policies (health, home, auto, etc.) provide adequate coverage. Compare prices and consider switching providers if you can find better deals without compromising coverage.
Maximize Retirement Contributions: If you have a retirement account (e.g., 401(k), IRA), try to maximize your contributions before year end if you haven't reached the yearly limit. The end of the year is an excellent time to increase your retirement savings.
Harvest Tax Losses: Consider tax-loss harvesting if you have taxable investments. Selling losing investments can help offset capital gains and potentially reduce your tax liability for the year.
Plan for Year-End Bonuses: If you're expecting a year-end bonus, plan on how to use it wisely. Allocate some of it towards savings, debt repayment, or investments depending on your situation.
Start Tax Planning: As the tax year ends, begin organizing your financial documents and start planning for the tax season. Take a look at your year-to-date tax withholdings and make sure that you are not going to be in for the nasty surprise of owing a significant amount to the IRS come tax time next year.
Renegotiate Your Bills & evaluate subscriptions: Negotiate with service providers like internet, cable, or insurance companies to see if you can get better rates or deals. Often, they have promotions available that you might not be aware of. Review your subscription services (streaming platforms, gym memberships, etc.) and determine if they are still necessary or if you can find more cost-effective alternatives.
Prepare for Holiday Spending: The holiday season is a time for giving but it should also be a time to budget. Creating a separate budget for holiday spending will help you avoid overspending. Consider thoughtful and budget-friendly gift ideas. Craft your holiday budget now and start planning for it. That way when the holiday craziness starts, you won’t be taken by surprise and there won’t be a big hole in your budget.
Remember, it's crucial to assess your unique financial situation and goals before making any significant financial decisions. Have you moved, changed jobs or had a major life change? It’s wise to work with a financial advisor to provide personalized guidance and help make the best choices for your circumstances.
No matter your situation, the smartest thing you can do is to start planning now. Make the right changes now, and you’ll be in great shape for the year ahead!
Schedule a Fall Financial Checkup of your investments today by calling 518-406-5624. You can also schedule online at simmonscapitalgroup.com. Thanks for watching and we will see you next week!