Oklahoma Money Matters

1. Review Your Budget:
   Look closely at your budget and spending habits over the past year. Identify areas where you overspent and opportunities for savings. Adjust your budget to better reflect your financial goals and prepare for upcoming expenses.
2. Maximize Retirement Contributions
   Contributing to retirement accounts like a 401(k) or IRA helps secure your future and provides tax advantages. Check the contribution limits and aim to maximize your contributions before the end of the year. If you haven't already, consider contributing to a Roth IRA for its long-term tax benefits.
   
3. Review Investments:
   Review your investment portfolio to ensure it aligns with your risk tolerance and financial goals. Rebalance your portfolio if necessary, selling off overperforming assets and buying underperforming ones to maintain your desired asset allocation. This is also a good time to harvest tax losses to offset capital gains.
4. Use Your FSA Funds:
   If you have a Flexible Spending Account (FSA), use any remaining funds before the deadline, as most FSA funds do not roll over to the next year. Eligible expenses include medical expenses, prescription medications, and over-the-counter items.
5. Plan Charitable Contributions:
   Charitable donations can provide significant tax deductions if you itemize your deductions. Plan your year-end giving to support causes you care about while potentially reducing your taxable income. Keep receipts and documentation of all donations for tax purposes.
6. Review and Update Insurance Coverage: 
   You must complete your open enrollment by the deadline to avoid a coverage lapse or possibly getting stuck with a plan that doesn't meet your needs. Mark the dates on your calendar and give yourself plenty of time to review your options and make informed decisions.
7. Plan for High-Interest Debt: 
   High-interest debt, such as credit card balances, can significantly drain your finances. Develop a plan to pay off as much of this debt as possible before the year ends. Consider consolidating your debt or transferring balances to a lower-interest card to save on interest payments.
8. Review your Tax Situation: 
   Estimate your tax liability for the year and take steps to minimize it. This might include making an extra mortgage payment, prepaying state and local taxes, or making additional retirement contributions. Consult a tax professional to explore other tax-saving strategies relevant to your situation.
9. Get Organized: 
   Organize your financial documents and records, including receipts, bank statements, and investment reports. Having well-organized records makes tax preparation more manageable and helps you stay on top of your financial health.
   

Checking these off your to-do list before the end of the year can help you maximize savings, minimize taxes, and set a strong foundation for the year ahead. By taking a proactive approach to your finances, you'll be better prepared to meet your financial goals and navigate any challenges that come your way.

For more information about managing your finances, check out our resources at OklahomaMoneyMatters.org. If you have money-saving tips you'd like to share, email us at OklahomaMoneyMatters@ocap.org or visit Ask OKMM to submit a personal finance question for a future edition of Financial Friday

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