5 Ways You Can Ensure That You’ll Be Financially Ready Before 2017

Only a few days remain before 2016 ends, making way for 2017. Before the hectic schedules and the holiday mania come into play, make sure your finances are also ready to welcome a new year. Here are 5 things you can do to get ready financially for 2017.

 

1. Donate to Charity

It is, after all, the season of giving. That’s why it is only right that you give some to the needy and the poor. This will do good not only on your heart but also on your pockets. Donations entitle you to many tax benefits. One such things is the reduction of your tax burden. The vice president of practice management at Mariner Wealth Advisors in Denver, Chad Hamilton, said in an email, “If instead of gifting cash, you gift appreciated securities, you can receive a double tax benefit of not only the upfront charitable tax deduction but also the avoidance of capital gains on donated property." So do good and receive good back instantly.

 

2. Set Aside Your Annual Raise

For people who are fortunate enough to receive annual raise, here’s the best thing you can do with it: spend it on a good cause. A certified financial planner in California told US News, “Tell someone close to you that you are going to use half of next year’s raise to increase your 401(k) contributions. If you are fortunate enough to get (say) a 4 percent raise, increase the amount of pay you are deferring into your 401(k) by at least 2 percent.”

 

3. Assess Your Finances

It’s common sense. After a year of saving, spending, and earning money, what has happened to your financial status? Are you hitting your set financial goals for 2016? Or have you made a mess of your finances? Assessing your current condition is essential to know what you need to do next. According to a wealth advisor at Halpern Financial in Maryland, Melissa Sotudeh, “One simple way to compare is to look at your net worth (your assets minus your liabilities or debts) once all of your final statements for 2016 come in."

 

4. Get in Touch with Your CPA

Before everything gets hectic and too crazy, make it a point to talk with your CPA. This way you’ll know your assets, your taxes, your expenditures, and the things that you have to accomplish before 2017.

 

5. Create Goals for Next Year

Once you’ve ensured that your finances are ready for the upcoming year, it’s time to set your goals. Aim to get it done by the end of 2017. To do this, you can enlist the help of professionals such as financial advisors or simply your family and friends. Set realistic goals that you know is attainable and rewarding for you.

Quotes from this article were taken from US News.