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In the end of the year, it is good that you make your financial house cleaning. There are plenty of ways you can do this and there is also a useful application you can install to assist you in this. YNAB is an application you can use for thirty-four days free of charge and buy the paid version later if it serves your needs. It helps you organize your financial bills and reduce your unnecessary expenses. There are many other ways to keep your budget in line too.
Here are some useful advices, which can make the end of the year financial house cleaning easier for you.
One thing you can do is spend the money you have gathered in your flexible account for different things that you need. Whether you need new glasses, food supplements, visit at the doctor, medications or other things, use the money you have saved for additional purchases. Try to invest as much money as possible to reach the maximum of your retirement accounts. Payments on your standard IRA and 401K are tax deductible and you can profit from that. Investing in your retirement account will result in a wealthier life later in your pension years.
You can also request your free credit report to give you a clear view of your expenses, bills and accounts. Every one of the three credit reporting agencies are obliged to give you such report at request annually. So take advantage of this opportunity and see you report at the end of the year to help you in house cleaning.
Decrease your taxable income by donating clothes, furniture or items you don’t need any more to some charitable organization. This will reduce your bills for taxes by receiving a receipt and applying for deduction of your taxes.
Check your shares and sell your losing stocks to balance your losses. You will earn more from this sale than you will gain by keeping them. Check the people you have chosen for your beneficiaries. See the list with names of people, who you have chosen to be the recipients of your insurance policies and superannuation accounts. If you’ve had a birth, death or divorce this year, this may change your beneficiaries.
See your accounts and plan how much you can afford to pay for Christmas’, New Year’s and birthday presents for the and of the year and the next year to come. Spend as much as you can afford, without having to make any compromises with your daily expenses.
Check well your debt balance and be sure that you really understand what the conditions of your creditors are, if you don’t want to be a victim of fraud. Read well your contracts from up to bottom, without missing anything and if there is something that you don’t understand, go to your creditors’ office and ask them to clarify it. Don’t agree with condition that aren’t good for your finances or you don’t clearly understand. If you don’t really need something don’t get in debt by signing a contract for a credit to but it.
At the end of the year a good way to do a financial cleaning is investing in a new home. Sellers will be a lot more motivated and your moving will be made easier. You can use your old home by giving it to be rented or selling it. It depends on the needs that you have and do you want to live in your old house or prefer buying a new one. New Year and Christmas are the perfect time to celebrate your new home with your family and friends, together with these holidays.
The article is guest post by Fiona Grayson who writes for Domestic QualityCleaning. She is not a financial expert but knows how to manage her personal finances and likes to read on topics related to budgeting and investing.