On the first Monday of December, I though I would review a couple things to do at the end of the year.

  1. Sign up for loyalty programs, such as frequent flier programs. Frequent flier program typically award status level based on flights taken in a calendar year. As a result it makes sense to make sure you’re signed up for the whole calendar year.
  2. Make a list of likely big purchase items for the following year. Too often we budget without thought to the big ticket items like vacations, cars, etc. The only big ticket item on my list is a home, but I’m not sure I’m going to do that next year.
  3.  Spend whatever might be left in the Flexible Spending Account.  I’m buying contact lenses. The Flexible Spending Account is use it or lose it, and there’s no reason to lose it. What’s allowed as health care expenditures is broad enough to allow for many common purchases such as over the counter drugs.  Stock up for next year.
  4. Give to charity. Actually try to give to charity year round, but the holiday season is always a popular time to give as many charities often trying to “get the vote out.”
  5. Open up a savings account. There’s no better way to start the new year with a savings account in hand ready to accept automatic deductions.  It’s never too soon to start funding an emergency fund, and it’s never too late to siphoning money off for the next big purchase or investment.
  6. Open a Roth IRA. The Roth IRA is really one those accounts you want to open sooner rather than later. Given the current tax law (which is in state of flux), many well paid individuals do no qualify to contribute. You might not think that you’ll join these ranks, but I know plenty of people who didn’t think about opening an account until it was too late.
  7. Open a 529 Account.  Even if you don’t have children, opening a 529 account can make sense.  You could open up the account, designate a sibling as a placeholder, and change the beneficiary to your child at a later date. Or even better open a 529 account for family member’s child who might not be as wealth off as you. I don’t have children, and this something I’m going to do this year.
  8. Open a Brokerage or Mutual Fund (Vanguard and Fidelity are good choices) account if you don’t already have, and get ready to begin your investing career.
  9. Talk to family about instituting a minimal gift policy for Christmas. Call me a Grinch, but I find the extensive gift giving over Christmas both unnecessary and time consuming. I rather spend my time entertaining family and friends during holiday season in place shopping for gifts.  That said, I’m already on a minimalist plan with my family so I really shouldn’t complain. I probably only spend 2 hours gift shopping for the holidays.
  10. Use the extra time off from work laying out a financial plan for years to come.  Take the time to evaluate what’s really important in your life, and what those “things” cost.  I think it’s too easy to be caught up spending too much money on things that are easy and offer immediate gratification while avoiding make real progress on the goals that would make us happy. I know I’m guilty of spending a good chunk of change on an expensive meals because I can, instead of spending more time planning tastier meals at home that I know is more financially sustainable.

While almost any of these things can be done at anytime of the year, many of us think on a calendar basis. I know I certainly do.