The year-end economy is in pretty bad shape, which is all the more reason for consumers to get their finances in good order before January arrives. It’s always smart to begin the next calendar with a clean slate, and there’s no better time to tackle the job than now, where a few months remain until 2022’s books are closed. If you feel the urge to do some financial housecleaning, there are several excellent ways to begin the process. As the threat of inflation continues to grow people are realizing more and more the need to organize their finances. Those who have outstanding student loans still have the chance to refinance the debt into a single obligation that comes with one monthly payment and all-new terms.
On another front, those who owe back taxes, in any amount, should get on the stick and develop a detailed plan for dealing with them. The final few months of the year are also an opportune time to review life insurance needs, premium amounts, and coverage options. Vehicle owners can take some extra time during the holiday season to minimize the expenses related to operating the family car. Finally, consider developing a spending plan geared for the gift-giving months. It’s a wise way to avoid spending too much as the number on the calendar changes. Here are some specific ways to get started on the task of getting your personal finances in order.
Deal with Student Loans
Refinancing education loans is, for many, the central piece of the personal financial puzzle. That’s particularly true for adults who are attempting to whip their money situation into shape quickly. When you choose to enter a student loan refinance agreement, you’re exchanging one or more old loans for a brand-new arrangement. What’s the point?
Those who opt for refinancing gain access to several core benefits, like the chance for a fresh start with a new loan that comes with potentially better rates, terms, and repayment plans. The concept is a simple one, actually. Most borrowers currently have better credit scores now than when they took out the original loans. That’s why it almost always makes good sense to refinance education debt.
Catch Up on Back Taxes
Taxes have a way of delivering a special kind of financial sting. The government has extensive legal and other kinds of power to examine your bank accounts, delve into your financial situation, and more. It’s a smart move to settle outstanding tax bills as quickly as possible. In addition to stopping the accumulation of penalties and interest, settling now means you won’t have to roll the debt over into a future tax bill.
Minimize Vehicle Expenses
The winter months are the perfect opportunity to get vehicle expenses under control. Besides paying for an annual checkup from a licensed mechanic, consider reworking your fuel budget by taking public transportation more frequently. Then, set aside a fixed amount of funds each month for maintenance and repairs. Saving in this way is a constructive technique for avoiding the use of credit cards for routine auto repairs. The cold months can also serve as a reminder to reassess insurance policies. Some carriers give loyalty and safe driver discounts at year-end, so contact your agent and ask about those ways to get lower premiums.
Disclaimer: This content does not necessarily represent the views of IWB.