4 Tips for Getting Your Finances in Order by the End of the Year

The winter months can be extra hard on your finances: from gift-giving to holiday traveling (and tax day on the horizon), it’s understandable to be feeling some monetary-induced mood-swings right now.

If you’re looking to straighten out your assets before 2021, check out these four tips for getting your finances in order by the end of the year!

#1 Start a Savings Account

There are so many reasons to have a savings account:

Prepare you for emergencies
Help you get closer to your financial goals
Allow you to save up money to invest
Come with some attractive accruable interest (especially if they’re high-yield accounts)

If your savings are currently lacking, it’s important to make an effort to bulk them up before the new year. Set aside a small portion of your paycheck each week (anywhere from a few dollars to a few hundred) and put it into a separate account. Over time, you’ll begin to see this money add up without feeling a hole in your wallet.

Bonus Tip: Use a banking app like Chime to make saving effortless. Chime rounds up your purchases to the nearest dollar and deposits the change into a savings account for you.

#2 Make a Payment Plan for Your Debt

Many people worry that their finances will be destroyed by debt, especially in large amounts. While these concerns are reasonable, paying off debt doesn’t have to be scary.

Most institutions will allow you to set up a payment plan for any amount of money you can’t afford all at once. These include:

Medical bills
Overdue utility bills
Rent and mortgage
Car payments
Student loans

If you’re faced with a hefty bill you weren’t expecting, try not to panic. Your first step should always be contacting the financial department to request information about starting a payment plan.

Bonus Tip: Use an app like Mobills to keep track of billing due dates. This will help you stay on track, adjust your budget accordingly, and prevent late or missed payments.

#3 Prepare for Tax Season

Tax day tends to sneak up on people. When you’re not ready for this fateful day in February, your bank account and your mental health can suffer.

Doing your taxes is stressful—there’s no denying that. Fortunately, there are ways to make it a little less stressful this year. When preparing for the upcoming tax season, try implementing some of these financial habits into your routine:

Keep receipts for deductible purchases
Find a service that works for you (Taxslayer is great for those on a budget)
Request your W2 or 1099 form from all employers as early as possible
Organize paperwork ahead of time
Have an emergency fund in case of an audit

Bonus Tip – For a natural, affordable way to combat tax-induced stress, give CBDfx gummies a try! The non-psychoactive properties of CBD can aid sleep, reduce anxiety and stress, and promote mood regulation. Getting your finances in order requires a little self-care, too!

#4 Check Your Credit Score

It’s hard to get a full picture of your finances without knowing what your credit score is. Your score will most likely fall into one of these categories:

Excellent (720-850)
Good (690-719)
Fair (630-689)
Bad (300-629)

Making payments on time, keeping a low revolving amount on credit cards, and paying off loans over time are all great ways to improve your score and keep it above 690.

Bonus Tip: Checking your score doesn’t have to cost money or hurt your credit. All you have to do is get a free credit report from Equifax, which can be done up to three times per year.

Make This the Year of Financial Security

When your money is in order, life becomes a bit more manageable.

With these tips and tricks, you’ll be well on your way to a stronger economic foundation. Make 2021 the year of financial security. All it takes is a little hard work and a lot of smart budgeting.