The year 2010 is almost coming to an end. People are busy in getting prepared for the festive season. Although there is nothing wrong in spending your hard earned money in the festive season but it will be a mistake to forgo your financial responsibilities. By skipping your fiscal responsibilities, you may end up getting into financial problems. There are few financial moves you can make to ensure you'll start the New Year on a good financial note. Read on to know about 5 intelligent financial moves you can make before the year comes to an end.
Intelligent financial moves at the end of the year
Here are the 5 smart and intelligent financial moves at the end of the year:
1.Analyze your financial condition: It is important to have an idea about your financial situation. For that, you need to create a list of all your assets, insurance policies, stocks, bonds, mutual funds, etc. Inform your family about your annual income, expenses, debts, etc. They may help you in revising the family budget as per the financial requirements. If you own a business, then go through your balance statements minutely.
2.Pay off your bills: If you have piled up a good amount of debt, then a good financial move at the end of 2010 will be to pay it off. If you can't repay the total debt amount, then try to pay a portion of it. This will help you improve your credit.
3.Spend according to your affordability: A lot of people get into financial problems as they tend to spend beyond their means. So, it is important to spend as per your income. When you analyze your financial situation, highlight the areas where you can cut back your expenses. Apart from that, exhaust your medical insurance policies if they're expiring.
4.Create an emergency fund: It is really important to create an emergency fund for meeting the unforeseen expenses. There is no guarantee that you'll have job next month or a disaster will never strike upon your family. So, it is better to have some spare cash in hand for covering the emergency expenses. Contribute a portion of your income towards your emergency fund every month.
5.Boost your retirement fund: If you've substantial amount of cash in your savings account, then you can make some additional contribution to your retirement account. This will boost your retirement fund further.
Finally, a lot of people don't know that they can get tax deductions by donating to charities. Just make sure you have the receipts. So, donate your extra cash to the qualifying charity organizations and take advantage of tax deductions.