7 Money Moves You Should Do Consistently Throughout the Year

Some points of the year feel more money oriented than others: the holidays you can definitely plan to spend a significant amount of dough on gifts and parties, while tax season might provide a much needed refund from the past year’s earnings and work. However, there are a few money moves that you do not need to wait for a calendar invite to take advantage of.

An Instagram user @the.moneyminimalist and who goes by “Helen, a personal finance Blogger” on the platform posted an end of year money checklist in 2021 that could be utilized for you every month, quarter or year.

If you are looking for more in-depth things to do with your money year round, GOBankingRates has you covered. We spoke with a few financial advisors and found out the seven money moves you should be doing consistently throughout the year .

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Automate Your Savings

“I recommend [that] all of my clients set up automatic periodic investing plans,” said Bryan Kuderna, author of What Should I Do with My Money? , who is a big believer in dollar cost averaging.

“Automate monthly contributions into your savings account or investments,” added Jason Dall’Acqua, financial advisor and founder of Crest Wealth Advisors . “When faced with the decision to save or spend, most individuals will choose to spend money. By setting up automatic transfers you avoid having to make that decision, which will have significant benefits over time.”

Kuderna explained, “Not only does this create a ‘forced savings’ and regular habit, but it takes the guesswork out of timing the market. Investing a fixed sum of money at regular intervals allows investors to buy more shares when the market drops (discount) and less shares when the market is high (premium).”

“Even if you can only start with a small amount, something is better than nothing. Most importantly it will help build the habit of saving,” Dall’Acqua said.

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Evaluate Your Taxes and Benefits

“It’s normal to not want to think about taxes after filing season, but you should check in to make sure you are withholding the correct amount,” said Mark Henry, founder and CEO at Alloy Wealth Management .

“It’s a good idea to talk to a tax professional about this, so you avoid any confusion and unnecessary payments,” he continued, suggesting that you should also ask yourself if you are using your FSA or HSA to their full benefit.

“Review your tax return and make adjustments to your finances based on whether you received a refund or owed money,” Dall’Acqua explained. “In either case, you may want to adjust your tax withholding to align as closely as possible with what your estimated tax liability will be.”

“Getting a refund is not a good thing since you are essentially loaning the money interest free to the government, when you could have instead had that extra cash flow for expenses or investment purposes,” he said.

Contribute To Your Retirement

“For workplace retirement plans like a 401(k), it’s wise to see in the third or fourth quarter if there’s room to max out your contributions or receive the full employer match,” Kuderna explained. “For IRAs this can be done before filing your taxes.”

“A 401(k) or IRA is the best way to start your retirement savings, so you should aim to regularly contribute,” Henry said.

“Try to max out your contributions throughout the year and be sure you take full advantage of employer-match contributions,” he said. “If you have any additional money to save or invest, ask yourself if you’re on pace to max out IRA contributions in addition to an employer-sponsored plan.”

“If you are eligible to do so, contribute to a Roth IRA each year to benefit from tax-free growth for retirement,” Dall’Acqua said. “You have until the tax filing deadline of the following year to make a contribution for the prior year.”

Check the ‘Rainy Day Fund’

“I encourage keeping at least six months’ expenses in cash at all times as an emergency fund,” Kuderna said.

An emergency fund should be everyone’s top financial priority, above other savings goals or even paying off debt, as per Henry’s advice.

“Aim to keep at least three-to-six months’ worth of expenses in reserve to buoy yourself in case of unexpected expenses or job loss,” he said.

“At this point in the year, you might have had at least one surprise expense, whether it’s car trouble, medical bills or a trip to the vet and had to dip into savings,” Henry said. “It’s okay to use your emergency fund when you need it — that’s what it’s there for — but try to replenish that money as soon as possible so you’re prepared for the next expense.”

Regularly Reassess Your Spending

Just as you should continue to track your spending, you should also regularly monitor and adjust your spending plan or budget, according to Henry.

“If you got a raise throughout the year or expect to, don’t just pocket the extra money to use on frivolous wants, but assign it a job like boosting your retirement savings, investing or other specific savings goals like buying a new car or home renovations,” he said.

“You should also periodically readjust your spending categories for inflation, too,” Henry said. “The cost of groceries or gas could be consistently different now than at the beginning of the year.”

Check Your Credit Score

“It’s good to check your FICO score every six to 12 months,” Kuderna said. “Not only is this a good scorecard of your debt usage and credit history, but it’s often the best way to see if there’s any shady activity going on.

“I know many people whose identity was hacked and they didn’t find out until their credit was pulled and discovered some mysterious charge or debt they never really incurred,” he said.

Keep Track Of Your Spending

Tracking expenses is something you should constantly be doing in Henry’s professional opinion.

“You might have done it for a little while to get an understanding of where your money is going and build a monthly spending plan, but don’t stop there,” Henry said.

“You should be continuously tracking expenses so that you can [see where] you spend too much and adjust accordingly throughout the year,” he said. “This will help you avoid overdraft fees, feel in control of your money and know exactly where you can cut costs if your financial situation suddenly changes.”

Regularly tracking spending will also help you stay on top of any recurring expenses or bills on autopay you might have forgotten about, Henry explained.

“Even if each autopay expense is only $10 to $20, cutting a few unused subscriptions or memberships can save you hundreds by the end of the year,” he said.

This article originally appeared on GOBankingRates.com : 7 Money Moves You Should Do Consistently Throughout the Year