It’s hard to believe that 2023 is getting long in the tooth, with only two months left. Because year-end initiatives often take a bit of time and most of us don’t want to be thinking about these things as we celebrate with family and friends in December, now is the time to get your finances in order ahead of any New Year’s resolutions.

It’s also a good time to make sure you maximize benefits such as tax opportunities and financial strategies as they apply to 2023. Here I’ll share with you five things you should be looking at before the clock strikes 2024.

Review Your Budget
Hopefully you had a budget set, but if you didn’t, take a look at what your spending habits have been. It’s too easy to just let finances happen to you and not be proactive. When you take the time to be intentional about your spending, you will likely find waste or areas where you can reallocate spending from something that doesn’t bring you a lot of value or joy to something that does.

Set Goals for 2024
Many of us have financial goals for the new year, but it’s important to be specific and make a plan to achieve them. For example, if you want to pay off $10,000 in debt, commit to paying $1,000 per month. If you’re planning to retire, figure out what your retirement income will be and try to live on that for a year to see if you can afford it.
Here are some tips for setting and achieving your financial goals:
– Be specific. The more specific your goals are, the easier they will be to achieve.
– Set realistic goals. Don’t set goals that are too ambitious or, on the other hand, too easy to achieve.
– Make a plan. Once you know what your goals are, create a plan to achieve them. This may involve budgeting, saving, and investing.
– Track your progress. It’s important to monitor your progress so that you can stay on track and make adjustments as needed.
– If you need help setting or achieving your financial goals, consider working with a financial advisor.

Max Out Retirement Contributions
Whether it’s your IRA, 401(k) or other plan there are limits that the government sets every year. If you don’t make your full contribution for 2023, you can’t make up for it by contributing for 2024. Be mindful of deadlines for IRAs and 401(k) plans and save more if you can.

Rebalance Your Investments
The stock market has been volatile in 2023, so it’s important to rebalance your portfolio. This means selling some of your winners and buying more of your losers. This may seem counterintuitive, but it can help you reduce your risk and maximize your returns over time.

Example:
If you invested $1,000 in each of five stocks at the beginning of 2023, and one stock is down to $800 and another is up to $1,200, you could sell $200 of the $1,200 stock and buy $200 more of the $800 stock. This would bring your portfolio back to balance and reduce your risk.

If you still believe in both investments, rebalancing could help you make more money in the long run. Next year, the stock that is currently down could outperform the stock that is up now.

Review Your Insurance Coverage
If you are like most people, you likely haven’t looked at your insurance coverage in a long time. If your home went up in value significantly but your insurance isn’t aligned with this value, you could be left with a major exposure. You may be able to save some money but you might also find that you don’t have what you thought you have.

The same applies for life insurance, disability and long-term care. Perhaps you bought a policy 10 years ago and your career has taken off—maybe you have a family relying on you, and if something happened to you it would result in a serious financial struggle. Maybe you are the primary breadwinner and your income disruption would be a huge challenge. If you are retired and still healthy, what would happen if your health declines and you need care? Are you protected in these situations?

Bonus: Use Up FSA Funds and Health Insurance Deductibles
If you have funds in a Flexible Spending Account (FSA), try to use it up before the year ends. Also, if you have met your insurance deductible you might want to go to the doctor or plan a procedure before the year is over, so you don’t have to pay next year to meet your deductible.

(Disclaimer: The information provided herein is not tax, legal or investment advice. You should discuss your specific situation with your financial advisor. If you don’t have an advisor and are looking for one, please consider Red Barn Financial.)

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Photo, top, courtesy of Karolina Grabowska / Pexels