The year is almost over. That means one clear chance: finish strong. Small, focused actions now can cut taxes, lower interest, and boost your savings. This post gives 10 smart, easy steps. Use them this month. They are practical and high impact.
1. Review and update your budget
Start with one simple idea: know where your money went.
- Pull last three months of spending.
- Spot one low-value subscription to cancel.
- Move that money to savings.
- This is quick and effective.
2. Max out tax-advantaged accounts
If you can, add more to retirement and tax-sheltered accounts.
- Contribute to your pension, 401(k), or equivalent.
- Consider a final-year HSA or IRA contribution if eligible.
- This lowers taxable income now and helps long-term.
Note: Check contribution limits for your country or ask your accountant.
3. Harvest tax losses (if you invest)
If you own investments in a taxable account, look for losses to realize.
- Sell losing positions to offset gains.
- Reinvest carefully (avoid wash sale rules where applicable).
- This is a tactical move to reduce tax on capital gains.
4. Pay down high-interest debt
High interest costs eat savings. Prioritize debts like credit cards.
- Make one extra payment this month if possible.
- Consider a balance transfer or consolidation for lower rates.
Transition words: For example, paying an extra $X can save interest next year.
5. Rebalance your portfolio
Markets shift. Rebalancing keeps risk in check.
- Check your target allocations.
- Move funds to restore balance between stocks, bonds, cash.
- Do this with low transaction costs in mind.
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6. Create (or top up) an emergency fund
Aim for 3–6 months of expenses. If you have less, top it up.
- Use a high-yield account or short-term fixed deposit.
- Keep it separate from daily accounts.
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7. Prepay deductible expenses (where sensible)
If you itemize deductions or run a small business, prepaying some expenses can help.
- Prepay business subscriptions or deductible repairs.
- Prepay professional memberships if useful.
Caution: Don’t prepay more than makes sense. Talk to a tax advisor if unsure.
8. Review insurance policies
Check life, health, and property covers. Rates and needs change.
- Make sure beneficiaries are up to date.
- Increase or decrease coverage based on life changes.
9. Plan for next year’s goals
Set 3 clear money goals for next year. Keep them simple and measurable.
- Example: save $20,000 for a course.
- Example: reduce credit card debt by 50%.
Write them down. Put them in your calendar with monthly check-ins.
10. Finalize year-end paperwork
Close out loose ends now. Document everything.
- Gather receipts for tax claims.
- Ensure invoices are sent and payments received if you run a business.
- Archive important documents securely.
Quick action checklist
- Update budget and cancel one unused subscription.
- Add to retirement or tax-advantaged accounts.
- Sell investments to harvest tax losses (if applicable).
- Make an extra debt payment.
- Rebalance investments.
- Top up emergency fund.
- Review insurance beneficiaries.
- Prepay sensible deductible expenses.
- Set three financial goals for next year.
- Gather tax paperwork & receipts.
Book your free year-end review
FAQs
Q1: How much should I add to my pension before year-end?
A: Add what’s comfortable, up to the legal contribution limit. Prioritize tax-advantaged accounts first.
Q2: Can I deduct pre-paid expenses this year?
A: Sometimes. It depends on local tax rules. Check with a tax professional.
Q3: Is it smart to sell losing investments now?
A: Selling to realize losses can offset gains. Avoid violating wash sale rules. Get tax advice if unsure.
Finish the year with confidence. Take at least two of the items above this week. If you want help, book a free year-end financial review with Terces Finance. We’ll make a simple plan. No jargon. Real results.
