Sleigh bells ring. Are you listening? Obviously, they are encouraging you to celebrate the year’s end by indulging in general merriment - and assessing your finances.
As we prepare to go out with the old and in with the new, it’s important to head into winter prepared. A clear picture of your financial status, including budgeting for winter issues, will help you glide smoothly down that snowbank into 2025.
Review and Adjust
The first step in end of year financial planning is to look closely at bank statements, credit card bills, and outstanding loans. Once you compare those expenditures to your income from sources like Social Security, pensions and investments, you will have a realistic understanding of your financial standing.
If the numbers don’t add up to an equation that makes sense for you, identify areas where you can cut costs. Maybe there are subscriptions or apps you no longer use that you can eliminate. Maybe you can lower the thermostat a bit to decrease energy payments. Even small changes can make an impact on the retirement reserves.
Set Your 2025 Goals
Create a list of your financial aspirations for the coming year. Do you have a target amount you’d like to save to pay off a debt or fund a bucket list trip? Is there a sum you would like to earmark for entertainment? Goal setting is a great way to get motivated.
Prepare for Tax Season
Organizing your documents in advance can go a long way toward easing the stress of tax season. Save yourself the headache of last-minute rushing by gathering those W-2s, 1099s, medical receipts and any other relevant paperwork before year’s end.
There are all kinds of deductions and credits available specifically to seniors. If you are not well versed on the latest updates to the senior tax policies in your state, it’s worth consulting a professional to get the best bang for your buck.
In the Event of an Emergency…
An emergency fund to deal with the unexpected is recommended at any age, but especially in retirement. Once you decide how much you would like to keep on hand for that rainy day, think about where you would like to keep it. Consider a high-yield savings account that will provide both easy access and a decent interest rate. Go to websites like Nerdwallet for a list of the standout online savings accounts.
Groceries
One way to “winterize” your finances is to stock up on foods that tend to skyrocket in price during the dead of winter. Pack the freezer with protein and veggies, stock the pantry with canned goods and you’ll sail through the winter months deliciously on budget.
Avoid Extravagant Holiday Spending
Blow through your budget in December, repent in January. Yes, you want to express your love for your family with holiday gifts. But, no, you don’t want to break the bank. Try something new this year:
· Give your kids a treasured family heirloom.
· Frame a photo of yourself when you were young and sassy for your loved ones.
· Buy an inexpensive craft kit and enjoy a project with the little ones.
· Pass down your favorite hardback books to the big ones.
· Buy one item you and your significant other will enjoy together.
There are lots of ways to enjoy the holidays without starting 2025 deep in newly accrued credit card debt.
Think About the Future
As you contemplate going forward, you may want to address the money pit in the room. If you are still pouring your hard-earned retirement dollars into a family home that has outlived its purpose and become an uber expensive albatross, Overture has your back. Designed to provide the ultimate in active adult living, Overture communities are filled with like-minded peers who share your zest for retirement life. Book a tour today!
Overture senior apartment living is exactly what you – and your retirement wallet - have been waiting for. Embrace a life of friendship, fulfillment and fun in 2025. Ho. Ho. HO!