Finance tips you should not ignore

As we approach the end of 2024, it’s important to make the most of the last 90 days if you want to reach your financial goals. Take a look at these 12 Q4 finance tips that may help you boost savings and finish strong.

#1 Assess Your Goal Keeping

Take some time to assess your progress toward reaching your short-term and long-term goals.

Did you have a goal to pay off debt in 2024? How close are you? What steps can you take to get yourself to that goal in the last 90 days?

What are your retirement goals? Do you want to be one of the 422,000 401(k) millionaires?¹ How close are you? What are some things you can do to make it more possible to meet this goal?

Keep in mind that 20% of 401(k) investors entered the 7-figure club between September and the end of December last year (Q4 of 2023).²

The final 90 days pushed these investors into the millionaire club.

Be honest with yourself about your goal-keeping and get real about achieving these goals.

[Related Read: 401(k) Millionaires Soared at the End of 2023]

#2 Make Tax-Advantaged Investments

One of the Q4 finance tips that may make a significant difference to your future is maxing out your IRA.

Technically, you have until Tax Day 2025 to max out your IRA for 2024. But why wait? 

The limit for individual retirement accounts (IRA) in 2024 is $7,000. If you are 50 and over, your limit is $8,000.

If you have a 401(k), see if you can contribute up the contribution limit or max it out. 

The 2024 contribution limit for 401(k) plans is $23,000. If you are 50 and over, your contribution limit is higher at $30,500.

Can you contribute a little bit more out of each paycheck for the last 90 days?

#3 Rebalance Your 401(k)

We recommend rebalancing your 401(k) account allocations quarterly. 

Unmanaged allocations may experience larger losses because of down markets. In contrast, they may miss out on growth opportunities during good markets.

Instead of allowing these things to happen, rebalance regularly.

If you haven’t before, start now!

[Related Read: How Rebalancing May Boost 401(k) Returns]

#4 Cash In on Investment Losses

One of the Q4 finance tips you don’t want to miss out on is claiming capital losses.

The IRS allows you to claim up to $3,000 in capital losses per year or $1,500 for a married individual filing separately. 

You may carry over unused losses into future years if you exceed this amount.

#5 Boost Your Emergency Fund

Bankrate’s 2024 Annual Emergency Savings Report found that “nearly 6 in 10 (59%) US adults are uncomfortable with their level of emergency savings.”³

Even if you have made it through most of 2024 without an emergency, it doesn’t mean you are in the clear.

We never know when a tire will blow, someone will need a hospital stay, or a tree limb will fall through the roof.

Having an emergency fund helps you avoid amassing debt when disaster strikes. 

Use the last 90 days of 2024 to boost your emergency fund – even if this means asking for money for holiday gifts to boost this savings account.

#6 Review Credit Reports

In August 2024, a major data breach was announced. 

This data breach included leaking the social security numbers of almost every American (or 2.9 billion records) and full names, dates of birth, phone numbers, and addresses.

If you haven’t already obtained a credit report, get one.

Call 1.877.322.8228 or visit www.annualcreditreport.com to obtain a free credit report from the 3 major credit reporting agencies.

Look over your credit report and see if you notice anything suspicious.

You may also want to consider freezing your credit to prevent scammers from opening new accounts in your name. 

[Related Read: National Public Data Breach: What You Need to Know]

#7 Plan for Holiday Bonuses

Q4 finance tips always include strategizing for the holidays.

If you haven’t already, start saving for holiday presents and get your holiday spending budget set.

There is another holiday finance tip we hope you’ll use – plan for potential holiday bonuses.

If your company gives a holiday bonus, plan to use this extra money to boost your retirement savings and help you achieve your financial goals.

#8 Reassess Insurance Policies

As we approach the end of 2024, consider where you could be saving money.

Remember, every bit saved is something that could add to your future.

For example, are you overspending on insurance?

Many Americans mistakenly buy insurance and just renew these policies with the same companies year after year.

If you do this, you could be missing out on potential savings!

Use these last 90 days to shop around and see if you can get better rates for the new year.

#9 Use Up Your FSA

If you have a Flexible Spending Account (FSA), you may need to use it up before the end of the year, or else you’ll lose the money.

Over this last quarter, use your FSA pre-tax dollars for healthcare needs.

Schedule doctor appointments and purchase medications so the money doesn’t go to waste.

#10 Create a Better Budget for 2025

The next Q4 finance tip is to plan ahead for the next year.

Keep your short-term goals and long-term goals in mind.

What do you need to do better in 2025 to achieve these goals?

#11 Continue Learning

People make all sorts of resolutions at the start of a new year.

A common resolution is to learn more.

But life happens, and the goal they had to read more or gain more knowledge lands on the back burner.

If this sounds familiar, don’t give up. There is still plenty of time to achieve this goal!

Spend the last 90 days learning more about finance and investing.

#12 Seek Professional Advice

Likely the most effective of the Q4 finance tips is to seek professional advice.

Speak to a financial advisor to get on track and stay on track with your financial goals.

If you want independent, professional account management to help grow and protect your 401(k), schedule a complimentary 15-minute 401(k) strategy session with one of our advisors.

Have questions or concerns about your 401(k) performance? Book a complimentary 15-minute 401(k) Strategy Session with one of our advisors.

Book a Strategy Session

SOURCES

1. https://newsroom.fidelity.com/pressreleases/fidelity–2023-retirement-analysis–despite-uncertain-market-conditions–retirement-savers-have-high/s/b1b9fef9-4da9-4725-9080-bd614678181b
2. https://www.fidelity.com/about-fidelity/Q4-2023-retirement-analysis
3. https://www.bankrate.com/banking/savings/emergency-savings-report/

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