Time and money - before the year ends.

The new year will be here before you know it.

Like many of you I really do not enjoy these count down sites.  Whether it is for shopping or anything else, it almost always is bad news or last minute news.

Yet, there are many financial things that will benefit you, and you should consider before the year ends what those are. 

For instance, have you prepared a Christmas gift buying budget?  If not, now is the time to consider how you can reduce your expenditures in this area.  One idea if you have a large family or group to buy for, is to get everyone to draw names so you are only buying one gift.  One very large family I know all go to the Dollar Store together and limit their buys to one "gag" gift. Another is to limit the expense to under $10 or $5.  I know some families and friends limit it to personally made gifts, like artwork, or food, or babysitting service. 

But that covers gifts to others.  What about gifts to yourself and your savings?  

 If you haven't funded your 401K or IRA, now is the time to do it. The elective deferral (contribution) limit for employees who participate in 401k, 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $17,500 to $18,000.  On October 23, 2014, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. 

Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.

For 2014 and 2015, the maximum you can contribute to all of your traditional and Roth IRAs is the smaller of  $5,500 ($6,500 if you’re age 50 or older),  or your taxable compensation for the year.

And if you have relatives or friends asking you what you want for gifts, ask them to contribute to your retirement in whatever amount they can.  Otherwise if you get cash, just deposit before you spend it. 

It’s said that nothing feels as good as skinny looks.  Well, for me, nothing feels as good as a big fat savings account.  It feels better than getting any gift, toy, or service.  It feels better than giving someone that gift, toy, or service.  Being debt free and having a good amount of savings if the best gift you can give or receive.