As we approach the close of 2023, it’s an opportune time for a thorough year-end financial checkup. Here’s a strategic guide to ensure you enter 2024 on a financially savvy note:
Evaluate Your Budget and Savings Strategy
Reflect on your year’s spending and saving patterns. If your savings didn’t align with your plan, prioritize replenishing your emergency fund. Adjust your strategy for 2023 accordingly.
Maximize Contributions to Your Retirement Plan
For 401(k) participants, seize the opportunity to maximize contributions before the December 31 deadline. Note that Roth contributions have a deadline extension until April.
Audit Your Insurance Coverage
With housing prices on the rise in many areas, review your insurance coverage to align with current market values. Assess home coverage and consider an umbrella liability policy for comprehensive asset protection – surprisingly affordable for substantial coverage.
Optimize Health Savings Account (HSA) Contributions
Contribute to your HSA for valuable tax benefits. Additionally, review the need for reimbursement from the account for any out-of-pocket expenses incurred throughout the year.
Philanthropy and Charitable Contributions
Give back if possible! Even if you’re not itemizing returns, you can deduct up to $300 for charitable contributions. Make a positive impact while enjoying potential tax benefits.
By following these strategic steps, you can set the stage for a financially sound and prosperous new year!