4 Money Moves You Should Make Before 2014

| December 26, 2013

Apart from planning the New Year’s party and determining your resolutions, there are also something more that you must add to your to-do list. Whatever your experience was, financially, this year, whether you have a huge list of debts to pay off or it was, more or less a positive year, you must give your financial graph a last thought before the clock strikes midnight. These moves will help you take advantage of expiring the tax breaks, improve your overall financial condition and of course, beef up your retirement portfolio. In fact, doing a bit of financial housekeeping now will definitely help you be on the right track for 2014 and even after that. Here are some such interesting money moves which you must make before the year ends –

  • Revisit your retirement plans – Figure out how much you have managed to contribute for the retirement plan over the course of the year and see if you can increase the amount of contribution. Alternatively, you can make an additional lump sum contribution to decrease the taxable income for the current year. According to financial experts, those who don’t max out the contributions, they will be leaving the opportunity behind. In fact, it is considered to be the best time of the year for increasing the next year’s contribution. Simply fill out all the paperwork and increase it up to a significant percentages.
  • Review your spending – Whether it is the time to gather funds for emergencies, or you need to pay down all the debts, a new year means a huge opportunity of making new financial habits. This is why it is advisable to look at the financial habits of the past year. For example see how much you have spent without planning, like car repairs, or last minute gifts. Keep those in mind and make a plan for 2014 accordingly. It is obvious that you have to pay for property taxes and take your car for maintenance once in a year and therefore it would be best to prepare yourself for these definite expenses at the very beginning of each financial year. Those who don’t follow this policy, usually end up maxing out their credit card limits and then are bound to pay off huge bills.
  • Use your money in FSA – If you have a Flexible Spending Account (FSA) using which you can manage the dependent care costs or health care costs for those you do not get reimbursements. Check out what is the remaining balance and most likely you would like to use that money before the year ends. According to the rules, you can contribute up to $2,500 to an FSA every year. Therefore, if you have more than $500 left, it would be wiser to  stock up on medication or schedule doctor’s appointments now only.
  • Make charitable contributions – This holiday season is the best time to donate and contribute in charitable funds. Make sure whenever you are going to donate to some trust, you are making it personally, as this will help you feel psychologically richer.

Author’s Bio – Jacks is a popular author and is associated with a number of reputed blogs like cashloans.eu since the last few years. His areas of interest include personal finance, debt management, insurance etc.

Category: Finances

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