As the year draws to a close, it’s an ideal time to evaluate your finances and take action to make the most of your benefits, save on taxes, and boost your financial security. Here are a few smart financial moves to consider before December ends.
Make The Most Of Your Health Insurance Benefits: “Consider making the most of your health insurance benefits before your deductible resets at the beginning of the new year. If you’ve already met your deductible, now is the time to take care of any planned medical appointments, tests, or treatments that may reduce out-of-pocket costs. This is also a great time to use any preventive health check-ups that may be covered in your plan. For those enrolled in family floater plans, ensuring all family members have taken advantage of necessary medical care can help maximize the benefits for everyone,” says Ashish Bhave, money and life freedom coach, CEO, WPH Services, a business success mindset coaching, training, and mentoring company.
Maximise Contributions To Your Retirement Accounts: Another valuable year-end financial move is to maximize contributions to your retirement accounts. Accounts such as the Employees’ Provident Fund (EPF), Public Provident Fund (PPF), and National Pension System (NPS) offer tax-saving advantages under Sections 80C and 80CCD. By contributing to these accounts before the year ends, you can make the most of the Rs 1.5 lakh deduction available under Section 80C, which may help reduce your taxable income. Assessing whether you’ve met the limit or could benefit from additional contributions will give you a clearer picture of your savings progress and any tax advantages.
Use Your Earned Leaves Or Paid Time Off: If you have accrued earned leave or paid time off, it’s worth using it before the year ends, particularly if your employer follows a “use-it-or-lose-it” policy. Taking time off not only helps with work-life balance and reduces burnout but also provides an opportunity to review your finances, make investment decisions, and plan upcoming expenses.
Check Your Credit Report And Credit Score: “Checking your credit report and credit score is also a valuable year-end exercise. You’re entitled to one free credit report each year from each of the major credit bureaus. Reviewing your report now will help you spot any errors or fraudulent activity and give you a clear view of your credit health. Staying on top of your credit score is important for future loan approvals, favorable credit card terms, and even rental agreements,” adds Bhave.
Enhance The Security Of Your Financial Accounts: Finally, enhance the security of your financial accounts. With the rise in digital payments, safeguarding your financial information is essential. This is an excellent time to review your account security settings, enable two-factor authentication, and update passwords. Using a password manager to keep track of unique passwords for each account can also add a layer of security. For those who frequently use Unified Payments Interface (UPI) or other digital transaction methods, regularly reviewing your transaction history and being cautious with UPI credentials are key to protecting yourself from fraud.
Taking these steps before year-end can bring peace of mind and financial strength as you prepare for the new year. You’ll be set to meet your goals and maintain control over your financial well-being, ready for what lies ahead.
