December 13, 2024
Year-End Money Moves to Strengthen Your Financial Health
Close Out the Year with Confidence: Key Steps To Take Before the Year Ends
As the end of the year approaches, the holiday season often brings both excitement and stress. While you’re preparing for festivities, it’s also a great time to evaluate your financial situation and make year-end moves that can set you up for a prosperous new year. At Journey Credit Union, we believe that small changes today can lead to a more secure tomorrow. Here are a few key steps you can take to close the year strong and jumpstart your finances for 2025.
BOLSTER YOUR SAVINGS BEFORE YEAR-END
The end of the year is a natural time to review your savings goals. Are you on track to meet your objectives for retirement, your emergency fund, or a big purchase? If you haven’t yet hit your savings targets, consider making a year-end deposit. Journey Credit Union offers a variety of savings products, such as high-yield share accounts, that allow you to grow your money with competitive interest rates. Additionally, contributing more to your retirement account can reduce your taxable income for the year, providing a dual benefit of saving for the future and reducing your taxes now.
REVIEW AND ADJUST YOUR BUDGET
With the year winding down, it’s the perfect time to revisit your budget. Evaluate your spending over the past year and identify areas where you can cut back or reallocate funds. If you haven’t been following a budget, this is a good opportunity to start. Here’s how you can get started:
- Track Your Spending: Use Journey CU’s mobile and online banking tools to categorize your spending and identify areas where you can save.
- Set New Goals: Look ahead to next year and create financial goals based on your current budget.
- Adjust for the Holidays: With increased spending during the holidays, make sure to adjust your budget to account for extra expenses.
TACKLE OUTSTANDING DEBT
MAXIMIZE TAX-ADVANTAGED ACCOUNTS
Contributing to tax-advantaged accounts like an Individual Retirement Account (IRA), Health Savings Account (HSA), or Flexible Spending Account (FSA) before the year ends can help reduce your taxable income and set you up for the future. If you haven’t yet maxed out your contributions for the year, now is the time to do so. Not only do these accounts provide a tax break now, but they also help you save for long-term health and retirement expenses. Remember, the contribution deadline for most retirement accounts is December 31, so be sure to act soon.
GIVE BACK AND REAP THE REWARDS
Charitable giving is an excellent way to support your community and reduce your taxable income. Donations to qualifying charitable organizations are tax-deductible, so make sure to keep a record of your donations. Journey Credit Union supports community initiatives such as the Children’s Miracle Network, so consider giving to a cause that’s important to you and your family. Charitable giving is not just a financial strategy but a way to make a meaningful impact as the year draws to a close.
PREPARE FOR THE YEAR AHEAD
Once you’ve wrapped up your financial tasks for the year, start thinking about the year ahead. Setting financial goals for 2025 can give you a roadmap to follow, whether it’s saving for a big trip, building an emergency fund, or paying off debt. Utilize Journey CU’s financial resources and benefit from our knowledgeable employees, who will provide personalized service to help you develop a plan that aligns with your goals.
- Set Financial Goals: Determine what you want to achieve in the new year, whether it’s improving your credit score or saving for a vacation.
- Use Financial Tools: Journey CU offers tools like financial calculators to help you plan for future milestones, such as buying a home or saving for your child’s education.
READY TO TAKE CHARGE OF YOUR FINANCES?
At Journey Credit Union, we are here to help you navigate the financial landscape. Whether you’re saving for a future goal or managing debt, our range of financial products, resources, and personalized guidance can help you make informed decisions. As we wrap up the year, take the opportunity to boost your savings, eliminate debt, and set yourself up for a financially healthy new year. Stop by one of our branches to learn more about our services and how we can support you.
