December is here again. The “ember” months came like a thief at night, and somehow, we’re days away from waving goodbye to the year. For many of us, it’s a season of festive cheer, detty December plans, and all the food and drinks we missed out on all year. But between the “one last turn-up” and spending recklessly to “close the year well,” you might be missing one crucial thing—your finances.
Sure, it’s easy to feel like you’ve run out of time to fix anything financially. You might tell yourself, “January is coming; I’ll reset then.” But here’s the truth: you still have time to make smart moves with your money before the year ends. Whether you want to save on taxes, get your budget in order, or sneak in some last-minute investments, these moves can help you start January on a clean financial slate.
Let’s discuss some unconventional yet practical ways to detox your wallet, plan smarter, and end the year strong.
1. Prepay Some Expenses to Reduce Tax Liabilities
Taxes are the silent killer no one likes to talk about, but they’re coming for you, especially as the year ends. If you’re self-employed, a freelancer, or someone with additional income streams, this is your chance to be proactive. Consider expenses you’d typically pay in January—business subscriptions, utility bills, or professional services like accounting or legal fees. Prepaying these costs in December can lower your taxable income for the year and potentially reduce what you owe in taxes.
Imagine getting ahead on your bills and saving money on taxes. It’s a win-win. Just make sure you keep receipts and records for everything you prepay so your financial house stays clean.
Read: How to Detox Your Wallet Before the New Year
2. Lock In That Last-Minute Investment
This isn’t the time to overthink it. If you’ve been “meaning to invest” all year and are still on the fence, you’ve got a small window to make it count. Look at short-term investment opportunities like money market funds, high-interest savings accounts, or even dollar-denominated investments that can protect you from inflation and naira fluctuations.
The beauty of this move? You’ll have a slight interest or investment return waiting for you by January, which feels way better than starting the year broke and frustrated. Even a modest investment can push you closer to your financial goals in the new year.
3. Give Yourself the Gift of an Emergency Fund
December’s spending habits can be brutal. By January 2nd, most people are scrambling, muttering, “Where did all my money go?” Don’t be one of those people. Before you blow your money on one more outing or buy that last-minute asoebi you don’t need, prioritize your emergency fund.
Even if you can’t save three months’ worth of expenses in one go, setting aside something—anything—will ease your January stress. Think about it: what if your car breaks down in January, or your rent is suddenly due? A small financial cushion can save you from begging friends for “urgent 2k.” Start with what you can afford today, even if it’s just 5,000 naira.
4. Clear Out Small Debts for a Cleaner Start
Small debts are like termites. They don’t look like much, but if you leave them unchecked, they’ll eat through your financial foundation. December is the perfect time to look at those “little” debts—the unpaid loans, the money you borrowed for “just one outing,” or even credit card balances with high interest.
Pay off what you can before the year closes. If the debt feels overwhelming, prioritize the smallest one first and build confidence in paying off the bigger ones in January. Starting the year with fewer financial burdens feels like a breath of fresh air.
5. Make One Bold Budgeting Move for January
Here’s a challenge for you: set a “no-spend January” goal. December tends to leave our wallets battered and bruised, but a no-spend January gives you a chance to reset. Make a plan to only spend on essentials—like food, transport, and bills—and cut out all the unnecessary spending that December made you feel was “urgent.”
What’s the point? By the end of January, you’ll have saved money, paid off lingering debts, or even gotten ahead on a financial goal. Plus, you’ll enter February feeling like a financial boss.
Read: Smart Ways to Celebrate December
The Bottom Line: Small Moves, Big Impact
The end of the year is the perfect time to reflect and reset. While it’s tempting to focus on December’s fun and festivities (which you deserve), your financial moves now can set you up for a stress-free start to the new year. Prepay your taxes, sneak in that investment, beef up your savings, or pay off debts—whatever you do, don’t wait until January to act.
Remember: a new year won’t magically fix old money problems. But taking small, deliberate steps today? That’s how you turn the tide in your favor.
So, what are you waiting for? Make these last-minute money moves count and enter the new year with confidence.
RefinedNG is here to help you navigate your finances smarter and stronger as the year closes. Visit us for more money-saving tips, investment advice, and tools to make 2024 your best financial year yet!