As fall has officially arrived, the changing of the season can be an ideal time to revisit your financial plans with financial planning tips and a fresh perspective.
Ask yourself: What goals do you still need to tackle this year? And which ones do you want to pursue in 2025?
For your finances, here are three moves in the final months of 2024 to help set yourself up for success in 2025 and beyond.
3 Fall Financial Planning Tips
1. Review Your Monthly Budget
Inflation has risen significantly this year, so it’s possible the spending plan you came up with at the beginning of the year no longer works. Take another look at all your expenses, including groceries, utilities, rent or mortgage payments, as well as any discretionary spending like streaming services or dinners out.
Make a detailed list of your income and expenditures to identify areas where you can cut back. If you found yourself swiping your credit card more than usual this summer, prioritize paying off any balances that may have piled up on your statements.
2. Plan Ahead for Your Taxes
Regardless of whether or not you live in a state with high taxes, evaluating how to minimize the impact of taxation can help you build and sustain your wealth. For example, you should prioritize maxing out your Thrift Savings Plan (TSP) to fully take advantage of the tax breaks offered through those accounts.
For 2024, you can contribute up to $23,000 through your TSP, with up to an additional $7,500 in catch-up contributions if you are age 50 or older. Also, keep in mind that you can save up to $7,000 in an individual retirement account (IRA), plus up to an additional $1,000 in catch-up contributions for those age 50 or older.
3. Prepare for Your Holiday Spending
Thinking through what you plan to spend this holiday season will help you avoid racking up any unnecessary credit card balances come December. Make a list of gifts you plan to buy, set a target limit for each gift, and take advantage of any deals around Black Friday.
If you are planning to travel around the holidays, start that planning as soon as possible and book your flights, hotels, etc., before prices start to go up. Holiday costs can add up quickly, but proper planning and budgeting can help you keep things in a comfortable spending range.
The fall season and final quarter of the year serve as helpful reminders to evaluate your retirement planning and finances. It’s the perfect time to make the right moves to close out the year and set yourself up for success in the new year.
If you’re ready to get serious about planning for your retirement from federal service, register to attend a workshop today!
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