[youtube https://www.youtube.com/watch?v=1ndjTImEGjU]Take some time at the end of the year to focus on your finances. Whether your goals are to reduce taxes, or to simply focus more on retirement, now is a great time to get yourself prepared for next year.
Here are some places to start:
- Look over your finances. Make sure you are aware of where every one of your dollars is going. Then make adjustments to the areas you spend too much, creating a budget that meets your needs, but avoids excess.
- Give to charity. If you itemize on your tax return, you are eligible to claim any donations to eligible organizations as a deduction on your taxes. Be sure you always ask for a receipt.
- Add to your 401(k). Add to your retirement plan this year, as much as you can, up to the maximum allowed by law. Then start planning to give next year, too. This will help you boost your retirement savings while reducing your taxable income. Even as little as $25 extra per paycheck can go a long way over time.
So regardless of how this past year has gone financially, you still have a week to catch-up and make any end-of-year changes to impact your 2018 taxes. But also use this time to set yourself up for 2019 so that you hit the ground running in January.