OPINION/Santillo: How to get your personal finances ready for 2022 – Leominster Champion
| Guest Columnist
The end of the year is coming up and as with many things, luck favors the prepared. Here is a list of steps you should take between now and Dec. 31 to give yourself the gift of peace of mind heading into 2022:
• Evaluate your goals: Look at your spending habits and evaluate whether you have been able to meet your goals for this year. Were there any goals you put on hold for another priority that came up? A goals reassessment is especially important if you experienced a life transition in the past year that impacted your overall planning — the birth of a child, a divorce, a death in the family, or plans to retire.
• Review your financials: The end of the year is a good time to check your credit score. Interest rates are low, so review your mortgage, your car loans, and any high interest credit cards to make sure you are getting the most favorable rates possible. Are the products you are using serving your needs? If not, investigate alternatives in the market, including those that could save you money. Look at your emergency fund. If you drew into your rainy-day funds during the pandemic, think about replenishing it when your economic situation improves.
• Take on your taxes: Now is the time to maximize your deductions. If you can, max out your 401k contribution and IRA contribution limits for the year. If you have a health savings account (HSA) or a flexible spending account (FSA), check with your plan provider to make sure you are aware of the deadlines for using the funds. In some cases, contributions to your child’s 529 college account can be written off. Also make sure you document any charitable donations you have made over the past year. You may also want to consult with whoever prepares your taxes to make sure you are withholding enough and to keep up with any changes to the tax code.
• Review your insurance policies: Make sure you have enough coverage to cover your current situation and meet your financial goals. If you have insurance for something you don’t need anymore, you can economize by dropping it. For example, if you had insurance …….