Balance Personally, Financially and Physically
Let’s change it up | Financial BALC #70
When the financial world looks upside down, maybe it’s time to follow suit and turn over your money habits as well. Contrary to conventional advice, there are some regular money moves that are better done at the beginning of the year rather than the end. Five examples:
- Tap your flexible account early. Your employer provided FSA is funded with your pretax dollars. You elect an amount for the whole year, but it’s funded through equal payroll contributions throughout the calendar year. The exciting part is that you are able to start spending the whole amount on January 1st as long as it’s for FSA eligible expenses. If you spend it all by February, then it’s better than a low-interest loan.
- Make your charitable donations now. If giving to charity is important to you, why wait until December to make donations? Write your check now and feel satisfied. If you’re worried about having enough money throughout the year, then write a smaller check or cut back on other expenses. I’ve never heard of anyone going broke because he gave too much to charity and the charity benefits by having the money sooner.
- Contribute to your IRA in the spring. It’s tempting to wait until December to see how much you have to put into a retirement account, but don’t. If you fund your account early, you will find a way to make your remaining dollars stretch.
- Don’t wait for your fitness reimbursement. Pay the entire fitness membership up front at the start of the year, and then get it all reimbursed. Why wait until the end of the year to claim your money? Why have your money delayed because everyone waits until the end of the year to submit for reimbursement?
- Don’t wait to take investment losses. Don’t take a loss on an investment at the end of the year only to offset investment gains. The time to dump a losing investment is when the reasons for which you originally invested are no longer valid. Take your loss, and use what’s left to choose a better investment.
(SOURCE: WSJOnline)
