Next, implement the avalanche method: Pay the minimum on all your debts each month and put any extra money toward the loan with the highest interest rate. If you get a windfall—like a bonus or a tax refund—put it toward that top debt as well. Once you pay it off, move to the loan with the next-highest interest rate, and so on. Next, think about the previous year. Make note of any big life moments that might affect your taxes—like buying a house or losing your job. Finally, as basic as it sounds, triple-check all personal information that you enter on your tax forms or give to your accountant. One of the most common filing errors is entering incorrect Social Security numbers for spouses or children—and these numbers are critical for receiving valuable tax benefits and a timely refund. While that may seem impossible, it’s not if you pace yourself. Orman advises socking the money away over 12 to 64 months. “Stick to a plan that gets you to save a little more than what feels easy,” she says. Set up automatic deposits—right out of your paycheck—to an interest-yielding account and name it something like “Save Yourself”. Experts say personalizing an account with a name that calls out its purpose motivates you to keep saving. If you dipped into your emergency savings last year but are on better financial footing this year, focus on replenishing those savings. Next, think about the information you’re constantly looking for, scan the relevant documents, and then save them in a digital file. Finally, stand in awe of yourself when you find your most recent W-2 with a few swipes of your phone rather than the usual ransacking of your home. Make sure the investment mix still suits your long-term goals. “Your 401(k) plan likely has an online tool that can help you realign your balances in a way that’s right for you, based on your age and when you plan to retire,” says Katie Taylor, vice president of planning and engagement at Fidelity Investments. Read your payment history carefully to ensure it’s correct and report any activity you don’t recognize. If you notice recurring suspicious activity, you might want to freeze your credit. Keeping in mind that child identity theft can go undetected for years, consider freezing your kids’ credit to help prevent it. If your kid is applying to college—deep breaths!—gather the paperwork you need to apply for a student loan. The Free Application for Federal Student Aid (FAFSA) becomes available on October 1, so aim to submit it by November 1 because need-based aid is first come, first served. You also need a revocable trust with an incapacity clause (which appoints someone to handle certain assets for you if you’re unable); an advance directive (which states what medical care you want in an emergency); a durable power of attorney for health care (which names a trusted person to make medical decisions for you); and a durable financial power of attorney (which names someone to make financial decisions for you). Once you have these documents in place, hold a family meeting to inform loved ones of your plans. Also, try bargaining with your providers, says McLay. For cable, cellphone, and internet service, look into the introductory plans competitors offer and ask your provider to match the lowest one. Or download an app like Trim, which negotiates lower rates with providers on your behalf. (Trim is free to use, but you’ll split the savings with them.) Save money at the pharmacy, too. Ask how much a drug would cost if you paid without going through insurance and you may get a lower price, says McClanahan. Download GoodRx, a free app that compares drug costs and offers scannable coupons, and remember to use up flexible spending account funds, which usually expire on December 31. If you’re not sure what’s covered, visit fsastore.com for eligible products. A discussion about what you value most can help you get on the same page and create shared financial goals, says Kathleen Burns Kingsbury, a wealth psychology expert and host of the podcast Breaking Money Silence. Next, look at your spending over the past month or two and see if it aligns with your values. For example, if quality family time is important to you but most of your extra money goes toward material items, you may want to reevaluate your budget.
