David Sant, Chief Marketing Officer for Cyprus Credit Union, joined us with an end of year financial checkup.
He says if you take these financial planning steps, you should start the new year on the right food.
It's never too early to start preparing for next year's taxes. A you start receiving important end of year documents, keep these in a safe and secure place. Take a look at your taxable investments as well as ant charitable donations you made during the calendar year. Check your withholdings to make sure everything is correct.
MAX OUT CONTRIBUTIONS
Whether it's your 401K or your HSA, putting as much money as you can towards these accounts now will pay off in the future. This will also allow you to take advantage of any employer matching offers that are available to you. Contributions can be made until December 31st.
Having money set aside for the sole purpose of an emergency not only will provide peace of mind, but help prevent unnecessary credit card debt. While it has been recommended having at least three months' worth of expenses tucked away, having any amount is a great start.
PAYING OFF DEBT
While making minimum payments may help prevent interest and late fees, it's not the most effective way to pay off debt. If you find yourself with a little more money, thanks to a bonus or an upcoming raise, come up with a plan to divert some of these funds towards your debt.
Every Budget should have long term and short term goals. Just as you set new year resolutions, this is a great time to look at your goals from the past year, set goals for the new year, and check in on how you are doing for your long term goals.
You can learn more at cypruscu.com.