With the new year fast approaching, you may already be thinking about what you can do in the coming months to start it off on the right foot. As you do that, keep these three things in mind; following these tips will help you finish the year strong financially and set you up to hit the ground running come January.

 

Tip #1 – Avoid Debt Like the Plague

The holiday shopping season is a prime time to accrue debt. According to the National Retail Foundation, (NRF) merchants made spending on Black Friday and Cyber Monday irresistible for shoppers this year. Strong deals and money-saving promotional offers lured consumers into spending about $936 each this year, which is up 3.6% more than they did last year.

 

Now, if you’ve budgeted about $1,000 for holiday cards, gifts, Christmas lights and whatever else you like to gather to make your home or office feel festive this time of year, then that’s great. Spend away. If you haven’t budgeted for your holiday spending and, like most consumers according to the NRF, are planning to spend more than you did last year, then you are setting yourself up for financial stress in the new year.

 

The best way to end the year right financially, is to keep your budget in mind when doing your holiday shopping and spend in a way that enables you to avoid debt. You may need to get creative to take care of everyone on your shopping list, but a plate of homemade cookies or a hand-colored card are much better options than swiping your credit card without a plan for how to pay it off come January.

 

If you’ve already completed your holiday shopping and are pretty confident you overspent, take action now to prevent the scenario from repeating itself next year. Sit down today and create a budget and plan for next year.

 

Tip #2 – Stash Your Bonus Checks

If you are like many workers, you may receive a holiday bonus check at the end of each year. If you’re also like many people, you spend that check on unplanned holiday expenses like gifts for others or a night out. While there’s absolutely nothing wrong with spending your bonus check in that way, a better option is to deposit it into a savings account until after the holidays have passed.

 

You may find that you’ll want that check to help cover some unplanned holiday expenses or, you can really get a leg up on the new year by putting that bonus check into your retirement savings account. If you have a Roth IRA that you contribute to, stash that bonus money away in your Roth and right out of the gate you’ll be that much closer to maxing it out in the new year. Or, if you have children you’re trying to save for college for, consider putting that bonus money in as a contribution to their 529 College Savings Account.

 

Whatever you decide to do with your bonus check, the least productive option may be spending it right away on something frivolous. Instead, sit on it and give yourself some time to decide the best way to spend it for your own personal circumstances and situation.

 

Tip #3 – Start Planning for Next Year Now

While there isn’t much time left in the year, there’s still enough to get a jump-start on planning financially for next year. Before writing out your New Year’s resolutions, get out a pad and paper (or fire up your computer and create a spreadsheet) and figure out what you want to accomplish financially next year.

 

• Do you have debt you want to pay off in 2017?
• Do you have a retirement savings goal you want to hit?
• Are you saving up to buy a car, house or other major purchase?
• Do you foresee a major life change, such as adding a baby to your family in the year ahead?
• Do you dream of taking that exotic vacation that's on your bucket list?

 

Whatever your personal goals are, it’s likely that money will be required to accomplish them. Don’t wait, like some companies do, to get your budgets in order in March; start the year off right by having a plan in place for how you will accomplish your personal financial goals. Come January 1, you’ll be ready to hack away at your goals, which will make you that much more likely to accomplish them.

 

What are your financial goals for 2017? Do you know how to get there? Have you thought about reaching out to a financial advisor, such as the Trust Company, for guidance? Have you spent more or less than you thought you would on the holidays so far?