As we enter the final months of 2024, there's still plenty of time to make this year count. Whether your goal is to boost your savings, optimize your investments, or simply enter 2025 on solid financial ground, the next few months can be a game-changer. Below are eight practical steps to help you finish the year on a high note and set yourself up for success in the new year.
1. Save $1,000 by Year-End
Saving an extra $1,000 by the end of the year might sound ambitious, but it’s achievable by setting aside just $10 a day. Whether you want to create a financial cushion or reach a specific savings goal, this straightforward strategy can make a noticeable impact on your finances. Small, daily efforts compound over time—so start today and see the difference in just 100 days.
2. Max Out Your Retirement Contributions
If you haven’t maxed out your contributions to retirement accounts like your 401(k) or Roth IRA, now is the time to do so. Not only can you lower your taxable income for 2024, but you’ll also give your retirement savings a solid boost. Schedule a meeting with us to discuss the most efficient ways to maximize your contributions and which accounts to prioritize.
3. Roll Over Old 401(k)s
Do you have old 401(k)s sitting with former employers? Now is a great time to locate those accounts and consider rolling them over into your current retirement plan or a Roth IRA. This helps streamline your investments and may reduce fees, keeping your retirement planning more organized. We can help you evaluate whether a rollover is the best option for you.
4. Research High-Yield Savings Accounts
If you have extra cash sitting in a traditional checking or savings account, consider moving it into a high-yield savings account. These accounts offer better interest rates, helping your money grow faster while still maintaining liquidity. Let us assist you in finding the best options for your savings.
5. Take Advantage of Gift Exclusions
The end of the year is also an excellent time to make financial gifts to family members, taking full advantage of the annual gift tax exclusion. Gifting up to $17,000 per recipient can help reduce the size of your taxable estate and bring joy to your loved ones. Contact us to discuss how this fits into your overall financial plan.
6. Review Your Budget
Reviewing your budget as the year comes to a close is always a smart move. Are there areas where you can cut back or reallocate funds? If you anticipate an end-of-year bonus, it’s also a good idea to make a plan for how to use that extra income wisely. Even small adjustments can lead to significant financial improvements over time.
7. Prepare for Holiday Spending Early
The holiday season can put a strain on your budget if you’re not prepared. Start setting aside money now for gifts, travel, and other holiday-related expenses. This way, you can avoid last-minute scrambles or taking on unnecessary debt. Look into affordable options, like homemade gifts or experiences, to manage costs while still celebrating meaningfully.
8. Schedule a Financial Check-In
Finally, schedule a consultation with us to review your financial situation. A quick check-in can help ensure that your plans for 2025 are clear, up-to-date, and aligned with your long-term goals. Whether you need to tweak your investments or adjust your savings strategy, we’re here to help you enter the new year with financial momentum.
By following these steps, you’ll be well on your way to finishing 2024 strong and starting 2025 on the right foot. If you have any questions or would like personalized advice, schedule a consultation today! We’re here to support your financial success.