The end of the year can be hectic. Between juggling parties, last-minute holiday shopping, travel and spending time with family and friends, the last thing we want to do is think about our financial health. While it’s tempting to put off reviewing your finances until the new year, you might lose the opportunity to make some critical financial changes and save some serious dough before the clock strikes midnight on Dec. 31.
Here are six easy ways to get your financial health in order for 2015:
1. Review your spending. Analyze your spending patterns over the last few months. If you’ve gone a little overboard on holiday gifts or dining out, it might be time to revisit your budget. Review your financial goals from last year, and assess if you were successful in meeting those goals. You might also consider whether they will work for you in the coming year or if it is necessary to make adjustments. If you have yet to establish a budget, there is no better time than now to get started. Try using a free budgeting app with features to help you create budgets, track spending and set financial goals.
2. Get a free credit report. Get your annual free credit report now at AnnualCreditReport.com so you know where you stand before heading into the new year. Look over your report, and check for errors or negative information. If your credit history could use some improvement, make 2015 the year you get back on track.
3. Develop a debt payoff strategy. Before heading into 2015, take the time to review your balances. If you have extra cash in the bank, it’s worth making a large payment toward cutting down your debt. If you can’t pay down a debt you accumulated this year, create a debt payoff plan that will get it down next year. You can pay down your debt from smallest to largest, or pay down the debt with the highest interest rate first. Either way, what matters is that you develop a strategy to become debt-free.
4. Automate everything. If you haven’t already, now is the time to finally automate your bills and savings. The more you can automate, the easier your finances will be in 2015. Download a free bill payment app that will help you pay your bills on time and maintain a regular savings plan. This is also a good time to review and cancel any automatic subscriptions you aren’t using such as music streaming services, magazines, newspapers or premium subscriptions.
5. Spend your FSA. Flexible spending accounts allow employees to set aside a portion of earnings tax-free to pay for qualified expenses, most commonly medical expenses and child care. So if you have an FSA for qualifying expenses, now is the time to submit any outstanding claims. You can carry over only $500 into 2015, so get those claims in now. This is the perfect excuse to make those doctor appointments you’ve been putting off all year.
6. Review your insurance plans and rates. Look over your health, life, homeowners, renters and car insurance plans. It’s easy to “set it and forget it” — and then end up with the same insurance carrier for years. If you have any changes coming in 2015 that you need to plan for (getting married, having a baby, buying a home, etc.), now is the time to shop around for new insurance plans and rates.
With only a few days remaining in 2014, there’s no better time to give yourself a full financial review and make sure you’re doing all you can to set yourself up for success in 2015.
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6 Ways to Get Your Financial Health in Order for 2015 originally appeared on usnews.com
