It’s still hard to believe that almost another entire year has passed. As I was looking through my posts, I saw one I’d written last year about this time, and I thought it would be great to share again.
The funny thing is, our money moves this year are almost exactly the same as last year’s. We’re creatures of habit, for sure!
The biggest difference between this year’s end-of-the-year money moves and last year’s is that last December, we paid off all non-mortgage debt so this year, we have nothing to pay off. It feels amazing, and has felt amazing since we did it last December. We feel so much more in control of our finances this year, in large part because we keep more of our money and are able to save and invest more.
I’d love to hear your end-of-the-year money moves! Let me know in the comments!
While we’re still over a month-and-a-half from the end of the year, we know that soon, December 31st will be upon us, so the ThreeYears are currently working on end-of-the-year money moves to make sure our finances are in good shape.
Here’s what we’re doing to close this year out:
1. Contribute as much as possible to my i401k
Since I’m self-employed, I have an i401k (if you’re interested in the particulars of opening one, read this post). I am playing catch-up with my contributions since we had so many cash goals that we funded with my income this year. So, in the final quarter of the year, and in the first quarter of next year (or at least until we file our taxes), I’ll be contributing a lot to my 401K. Even though the market is high now, I don’t want to miss the tax contributions of these contributions. I estimate we’ll save several thousand dollars on our taxes if I reach my contribution goal for the year.
2. Fulfill our outstanding financial obligations
We’ve got a few outstanding financial obligations, including completing our yearly pledge with our church. We usually wait and pay the majority of our pledge in the fourth quarter of the year, when our cash flow’s better (as a teacher, I don’t get paid in the summer and it takes a month or so after school starts to begin getting paid, so our income rises in October, November, and December).
I also have to pay my fourth quarter taxes for income earned from September through December. I have until January 16th, 2018, to file the taxes, but I’ll probably go ahead and pay what I estimate I’ll owe before the end of the year. I set aside 20% of my income as it comes in, in my business account, so that money is ready to send in anytime I decide to pay the bill. Continue reading “5 Money Moves We’re Making Before the End of the Year”