Winter 2024-2025 Checklist: From a Financial Advisor
If it feels like your wallet stays open from the holidays until spring, you’re not alone. The good news? There are plenty of strategies to stretch your dollars and make the most of your finances as one year wraps up and another begins. Here’s how to get started.
December
Abandon Your Cart for Potential Savings
Before completing your online purchase, try leaving items in your cart for a while. Retailers often send discount codes to encourage you to finalize your order. Patience could pay off!
Use Your FSA Funds and Schedule Checkups
If you have met your insurance deductible this year, now is a great time to schedule medical appointments. You might pay less before the new year resets your benefits.
If you have a flexible spending account (FSA), use any leftover funds on eligible expenses. Make sure to do this before your employer's deadline, which is usually December 31. Don’t forget to check if you have a grace period or if unused funds can roll over.
Plan Your Charitable Contributions
You can help to lower your tax bill by donating to approved groups before December 31. Make sure to check the organization’s eligibility first. Also, see if your employer offers donation matching to increase your gift. A few minutes of planning can make all the difference!
Max Out Your Tax-Advantaged Accounts
End-of-year contributions to accounts like 401(k)s, 403(b)s, IRAs, and HSAs can lower your taxable income. They can also increase your savings. Keep in mind that retirement accounts usually have a deadline at the end of the year. However, IRAs and HSAs let you contribute until the tax-filing deadline in April.
For HSAs, contributing through payroll by December 31 can help you avoid extra taxes. If you’re saving for education, check your state’s 529 plan deadlines for any potential tax benefits.
Secure a Tax Prep Appointment Early
Avoid the rush by scheduling your tax preparer appointment now for the upcoming tax season. Unsure whether to DIY or hire a pro? Assess your situation to make the best choice before dates fill up.
Embrace Gratitude for Better Financial Habits
Taking a moment to appreciate what you have can lead to smarter financial decisions. Studies show that gratitude fosters patience, which is key to saving and investing for long-term goals. Take a few minutes each day to think, meditate, or write about what you are thankful for. This small habit can lead to great rewards.
January
Plan Your Time Off Strategically
Mapping out your vacation days early can help you use all your paid time off and snag coveted dates like long holiday weekends. Check with your manager about submitting requests in advance to get ahead of the crowd.
Set a Savings Target
Aim to make the most of your retirement contributions this year. Start by reviewing the 2025 contribution limits, then automate payroll deductions to keep your savings consistent.
Can’t max out your accounts? Try to contribute enough to get your employer's match. Increase your contributions by 1% whenever you get a raise or bonus. Working toward saving 15% of your income annually is a great long-term goal.
Automate Your Savings and Investments
Make saving effortless by setting up automatic transfers to your savings or investment accounts. It might take some time to choose the starting amount and where to send it. But once you decide, you can relax while your money works for you. Even small, consistent contributions can build strong financial habits over time.
Stay on Top of Quarterly Taxes
If you are self-employed or have income without tax withholding, remember to pay your quarterly taxes. These payments are due on January 15, 2025. This is for income earned from September 1 to December 31, 2024. Plan ahead to avoid penalties if you expect to owe more than $1,000 when filing your return.
Make a Plan for Bonuses or Refunds
If a year-end bonus or tax refund is coming your way, use it wisely. Whether it’s tackling high-interest debt, boosting your emergency fund, or contributing to long-term savings, put some of that extra cash toward your financial goals. And don’t forget to treat yourself—it’s important to celebrate milestones along the way!
Be Strategic with Gift Cards
Got a gift card over the holidays? To avoid overspending, aim to find items that match the card’s value as closely as possible. Studies show many shoppers spend more than their gift card amount, so staying mindful can help you stick to your budget.
Build Better Habits
Think about replacing old spending habits with new, budget-friendly ones. For instance, instead of impulse buying, make it a rule to look for discounts or sales before making a purchase.
Repeating actions tied to enjoyable rewards—like snagging a great deal—can help cement positive habits over time.
Try a Savings Challenge
Looking for a fun way to boost your savings? Take the 52-week money challenge. Save $1 in week one, $2 in week two, and so on.
By the end of the year, you’ll have $1,378 saved up. Reward yourself with part of your savings, and decide where to invest the rest for even greater growth.
February
File Taxes Early
Filing early in the tax season could save you money, as some preparers offer discounts when they’re less busy. Early filing also helps you avoid late penalties if you owe taxes.
Even if you are not ready to file yet, start organizing your receipts. This includes expenses or donations you want to itemize. And whether you file on your own or with a pro, remember: the IRS processes refunds faster for electronic filings with direct deposit details. Just be mindful of these 8 common tax mistakes.
Save on Dining Out
Planning a special dinner? Look for restaurants that allow you to bring your own bottle (BYOB). This can save you from paying steep restaurant drink markups while still enjoying a toast-worthy meal. Keep in mind, though, that some locations charge a “corkage fee,” and BYOB rules vary by area.
Keep Flowers Fresh Longer
Rising flower prices don’t have to mean fleeting beauty. To make your bouquet last, use a dark vase to protect the stems from sunlight.
Add a few drops of bleach to the water to cut down on bacteria. Trim the stems when you change the water every day. These small steps can extend the life of your blooms and get the most out of your investment.
Shop for Next Year’s Winter Gear
If your winter coat has seen better days, now might be the best time to replace it. Retailers often offer discounts on cold-weather clothing as they clear space for spring arrivals. To make room in your closet—and offset the cost—consider selling items you no longer wear.
Cut Heating Costs
Lower your utility bills this winter with these simple tricks:
● Replace furnace filters every three months.
● Set ceiling fans to spin clockwise to circulate warm air.
● Close vents in unused rooms.
● Check if your utility company offers discounts for switching to paperless billing.
March
Keep Tabs on Your Credit
You can now access a free credit report weekly from each of the three major credit bureaus—Experian, TransUnion, and Equifax—via Annualcreditreport.com. Make it a habit to check your report a few times a year. Look for errors like misspelled names, incorrect addresses, on-time payments marked as late, or unfamiliar accounts. Report any inaccuracies directly to the credit bureau to get them corrected.
Compare Prescription Costs
With spring (and allergy season) approaching, take a moment to review the cost of your prescriptions, especially if you’ve switched health insurers for 2025. Many plans offer apps or tools to compare drug prices at local pharmacies versus mail-order options. These tools can even help during doctor visits—if a medication is pricey, you can request a more affordable alternative on the spot.
Cut Spring Travel Fees
If you’re heading abroad for spring break, avoid foreign transaction fees, which can add 1% to 4% to every purchase. Review your credit card’s terms to see if these charges apply. To sidestep fees, consider exchanging cash before your trip or using a debit card for ATM withdrawals at your destination—just confirm your bank doesn’t charge international ATM fees.
Save on Tax Preparation
Tax Day, April 15, 2025, is just around the corner. Here are some tips to save on filing:
● Use IRS Free File: If your 2023 adjusted gross income was $79,000 or less, this tool can guide you through federal tax prep for free. Some states also offer free filing options.
● Check out Direct File: This expanding IRS pilot program allows eligible taxpayers in up to 24 states to file for free directly through the IRS.
● Refer Friends: Many tax preparers offer discounts or cash rewards when you bring in new clients.
● Look for Online Deals: Tax-prep companies often run promotions during tax season.
Plan Ahead for Smooth Filing
Start collecting your tax documents early. This will help you avoid stress later. Look for other ways to save on tax preparation this year!
Sources:
https://www.fidelity.com/learning-center/smart-money/financial-planning-checklist-for-winter
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information
