Get Ahead of the Game: November Financial Planning for a Prosperous New Year

As the crisp autumn air takes on a chilly hint of the impending winter, November arrives with a gentle reminder that the year is drawing to a close. It’s a period of introspection, of giving thanks, and for those of us keen on financial well-being, it’s the perfect time to address some critical year-end financial tasks. Here’s a rundown of what you should tackle to put a fiscal bow on the year.

Review Your Budget

Take a magnifying glass to your budget. Have you stayed on track? Did unexpected expenses throw you off course? November is your chance to adjust your spending, saving, or earning strategies to end the year on a positive note. It’s also an opportune moment to start sketching out your budget for the upcoming year, learning from the twists and turns of the months gone by.

Maximize Retirement Contributions

If you have a 401(k), IRA, or another retirement plan, now’s the time to check your contributions. Can you afford to increase them before year-end? Maximizing your contributions can lower your taxable income and bolster your nest egg. Remember, compound interest waits for no one, and every added contribution now can significantly increase your retirement savings.

Use Up FSA Funds

Flexible Spending Accounts (FSA) are use-it-or-lose-it, so check your balance. If you have unused funds, schedule that overdue doctor’s appointment or stock up on eligible supplies. It’s essentially pre-tax money at stake, so make the most of it.

Review Your Insurance Policies

Life changes, and so do your insurance needs. Whether it’s life, health, auto, or home insurance, policies should be reviewed annually. Changes in circumstance, such as a new home, a new job, or a new member of the family, could alter your requirements and potentially your premiums.

Tax Loss Harvesting

If you have investments outside of retirement accounts, consider tax loss harvesting—selling underperforming assets to realize losses that can offset capital gains taxes. This strategy can refine your investment strategy while reducing your tax bill.

Charitable Contributions

Charitable giving can enrich the soul and potentially your tax return. November is a good time to make charitable contributions that can be deducted come tax time. Plus, it aligns perfectly with the season’s spirit of generosity.

Check Your Credit Report

The end of the year is an ideal checkpoint for your credit health. Obtain a free credit report, review it for accuracy, and make plans to mend any issues. A good credit score is crucial for getting favorable interest rates on loans or credit cards.

Estate Planning Documents

Review your will, powers of attorney, and any other estate planning documents to ensure they’re up to date. The end of the year is a natural time to reflect on these crucial documents, especially if there have been significant life changes.

Set Financial Goals for the New Year

What do you want to achieve financially next year? Perhaps you’re saving for a house, planning a vacation, or considering starting a business. Setting goals now gives you a roadmap for the year ahead.

Reward Yourself

Finally, if you’ve met your financial goals for the year, don’t forget to celebrate that achievement. Reward yourself within reason, of course. A little celebration can set a positive tone for the financial year ahead.

November, with its overtones of endings and beginnings, is the perfect month for financial housekeeping. Tackling these tasks now can ensure that when the clock strikes midnight on December 31st, you’ll not only raise a glass to a new year but to a year well-financed. Here’s to a prosperous close to your fiscal year and an even brighter beginning to the next.