Ensure your happy new year with a year-end financial checklist

Monday, December 27th, 2010 By

financial goals

Before you pop the cork on the New Year, make some financial resolutions to make sure it's a good year. Image: CC geishaboy500/Flickr

Now is the time to get your personal finances in order. A new year is a good occasion for tying up loose ends on your financial checklist. Get off to a good start in 2011 by taking care of tax issues and re-evaluating your financial priorities.

What to put on your year-end financial checklist

Take financial steps in the week between Christmas and New Year’s Day that will make 2011 a better year than 2010. There are a few days left to address some critical tax issues for 2010. Charitable donations are still good for a 2010 tax deduction until Dec. 31. For another 2010 tax deduction, now is also a good time to dump depreciated stock. You can sell it and write off a loss up to $3,000. Consider converting an IRA to a Roth-IRA. You will pay tax on your Roth-IRA conversion, but if you do it by Dec. 31 you can spread the tax out until 2012. This week is also your last chance to get a free credit report in 2010 to make sure it’s accurate.

Financial resolutions for the new year

Find new ways to be thrifty. Start with credit card debt. Getting rid of credit card debt should be an even higher priority than saving money. Why? because the return you get on savings doesn’t come close to the high interest rates you’re paying on credit card debt. Pay down the expensive credit card debt first, then start saving. You’ll be able to save more. To help pay down credit card debt faster, figure out how much a habit costs and give it up. Make your own coffee or ride your bike to work. Take the money you would spend on lattes and gas and increase your monthly credit card payments.

Work together on financial goals

A lot of personal finance advisers recommend writing down your financial goals for the coming year. However, most people who do that soon forget them. In addition to writing down your financial goals, tell a member of your family or a friend you trust what your priorities will be. Ask them to hold you accountable to your promises and offer to do the same for them. Together you can both be more successful than you would going it alone.

Sources

Sacramento Bee

Wall Street Journal

Previous Article

« Avoid work rumors | 4 ways to keep out of the rumor mill

Avoiding work rumors is easy -- if you keep a few simple things in mind. Here are four easy places to start. Water cooler
Next Article

Leon Walker charged with felony hacking for reading wife’s e-mail »

Leon Walker has been charged with felony hacking, a crime that carries a five-year sentence, for checking and reading his wife's e-mail ... Gmail

This post has one comment

  1. Working Mom of 2 says:

    In "The Gospel of Roth- The Good News About Roth IRA Conversions and How They Can Make You Money" by John Bledsoe it clearly states in the book that NO ANALYSIS is needed and that everyone should convert to a Roth IRA regardless of income. There is NO risk! The IRS is giving us a year to recharacterize or "undo" the conversion. This book gives the ins and outs for Roth IRAS! It really helped answer all my questions.

Trackbacks / Pingbacks

Leave a Reply

Other recent posts by bryanh

How to get the house you want with a mortgage loan you can afford

Getting an affordable mortgage doesn't have to involve good credit scores, high down payments and 30-year terms ...
good credit score

Get financed today with instant bad credit loans online

Looking for instant bad credit loans online? Let us help you today. We also provide installment loans for bad credit. CLICK HERE to apply...
A smiling couple using a computer.

Idea to incorporate savings rate into credit scores wins $50,000

Factoring savings into credit scores won the grand prize in a contest for ideas on how to boost the falling national savings rate to 10 percent.
a savings credit score could increase the U.S. savings rate