9 Ways to Prepare Your Finances for 2012
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5. Review Your Beneficiaries
It’s a good idea to review your beneficiaries each year to cover any changes that may have occurred in your family. The assets in your retirement accounts, life insurance and annuities bypass your will because of the beneficiary forms these accounts require. If you want to make changes to your beneficiaries, remember that your need to make those changes to both your will and your beneficiary forms.
6. Use Up Your Flexible Spending Account (FSA)
If you’ve set up a flexible spending account (FSA) with your employer, now’s the time to use it. Although some employers offer an FSA grace period that stretches into the new year, they are generally a use-it-or-lose-it benefit that expires at year end.
If you need medical services or plan to incur other eligible expenses soon, be sure to get it done before your plan’s coverage period deadline to avoid forfeiting those FSA funds.
7. Review Your Long-Term Financial Goals and Set New Ones
You might be caught in holiday shopping and entertaining this month, but set some time aside to plan for 2012. It’s best to do this before the end of the year so that you can hit the ground running when 2012 arrives.
Think about what you learned in 2011 and what you can do in the upcoming year to improve your financial situation. Also think about your long-term goals, and break them down to determine what you need to be doing each year to hit them. Finally, write it all down and set some manageable goals for each quarter of 2012. This will help keep you on track.
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9. Set Up Automatic Savings
Once you determine where you want your money to go in 2012, take a trip to the bank and set up automatic deposits to your savings and retirement accounts. This will enforce your saving habit and keep your savings out of your reach, making it harder for you to break your commitment to putting that money aside.
If you can, time the withdrawals to occur on the same day you receive your pay check. This way, your savings will be whisked away before you get a chance to even think about spending the money elsewhere.
The end of the year is hectic time for many reasons, but don’t allow these distractions to keep you from addressing your financial affairs one last time this year. Like it or not, your finances will play a major role in how 2012 shapes up for you. Set yourself up for a more prosperous new year, and many more to come.
More: http://www.gobankingrates.com/retirement/year-end-checklist-9-ways-prepare-finances-2012/
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