The top three things to do with finances by December 31

The top three things people should do with their finances before December 31st depend on their financial situation and goals. However, some general tips that apply to many people include:

1. Maximize contributions to retirement accounts:

Contribute as much as possible to your retirement accounts, such as 401(k)s, IRAs, or SEP-IRAs, before the year ends. This will lower your annual taxable income and allow your retirement savings to grow tax-free.
For 2023, the contribution limit for IRAs is $6,000 ($7,000 for those aged 50 and older), and the contribution limit for 401(k)s is $22,500 ($27,000 for those aged 50 and older).

2. Review your budget and spending:

Take some time to review your budget and spending for the year. This will help you identify areas where you can cut back or adjust for the upcoming year.
Look for recurring expenses you can eliminate or reduce, such as unused subscriptions or memberships.
Setting up automatic transfers to savings accounts will help you reach your financial goals.

3. Make sure you’re on track with your financial goals:

Review your financial goals for the year and see if you are on track to achieve them.
If you need to catch up, make some adjustments to your plan.
This may involve increasing your income, reducing your expenses, or both.

Additional things to consider:

Examine your insurance coverage: Ensure adequate coverage for your home, car, and other valuable assets.
Maximize tax deductions and credits: There are a variety of tax deductions and credits available that you may be eligible for. Take some time to research these and make sure you’re taking advantage of all the deductions and credits you qualify for.
Make a plan for holiday spending: The holidays can be when many people overspend. Make a budget for your holiday spending and stick to it.
Rebalance your portfolio: If you have investments, ensure your portfolio aligns with your risk tolerance and investment goals. You may need to rebalance your portfolio to ensure it’s still appropriate for your needs.
Ask a financial advisor if needed: If you need clarification on these matters, a financial advisor can help. The advisor can help you create a personalized financial plan and ensure you’re on track to achieve your financial goals.