The holidays are coming, and while most folks are decking the halls, first responders know better: it’s crunch time. Between shift changes, emergencies, and wondering if Santa’s reindeer can handle your family drama, there’s still time to wring every penny and perk from your end-of-year benefits. Here’s how to get smart with it:
1. Max Out Retirement Contributions (Because Future You Deserves It)
Nothing says “I love you” to your future self like maxing out your 401(k), 403(b), or IRA. Reach that allowable limit and then—here’s the kicker—make a card. Hand it to your family at the dinner table and say, “This is your inheritance.” Add a movie gift card inside for a feel-good twist. Everyone wins, especially the popcorn.
2. Scour and Claim Tax Deductions Like a Financial Detective
You’re already solving mysteries on the job; now it’s time to unravel the case of the missing deductions. Dig into unreimbursed work expenses, charitable donations, and the miles you’ve driven for work. Then, slap those deductions onto your taxes like the overachiever you are. Boom—more cash for your bottom line.
3. Deploy Your HSA for Medical Costs—or Let It Grow Like a Money Plant
Have a Health Savings Account (HSA)? Great. Use it for eligible medical costs you’ve been putting off, or, better yet, let that cash sit and grow tax-free. It’s like a Christmas bonus, but better. Bonus points if you send your dentist a holiday card for finally fixing that molar.
4. Invest in Professional Development (Because You’re Already a Hero, So Why Not a Certified One?)
Got leftover training allowances? Time to level up. Whether it’s a certification or an online course, use that money for something that gets you closer to a promotion or a raise. Nothing says “holiday cheer” like a fatter paycheck in the New Year.
5. Holiday Overtime? Straight to Your Emergency Fund
Don’t let that extra dough from holiday shifts turn into a new flat-screen TV you don’t need. Funnel it straight into your emergency fund. Future crises don’t schedule themselves, but you can prepare for them like the boss you are.
6. 529 Plan: Because College Isn’t Getting Cheaper
The holidays are a great time to make another deposit into a 529 plan for your kids’ education. Who needs another LEGO set when you’re building a future without student loans? If your state offers tax benefits for contributions, it’s like getting a gold star for adulting.
7. Audit Your Work Perks Before They Expire
Unused gym memberships? Disappearing uniform allowances? Don’t let benefits vanish into the ether. Use ‘em or lose ‘em, as they say. Show 2024 who’s boss by cashing in every last freebie.
8. Charitable Donations: Share the Wealth (and Slash Your Taxes)
‘Tis the season of giving, and while you’re a pro at giving your time,energy, it’s also a solid move to give money and stuff. Pick a charity (or 12), donate those throw pillows you hate, and that nasty couch to boot, and enjoy the warm fuzzies along with a tax break. It’s like double-dipping, but legal.
9. Get Your Insurance Ducks in a Row
Review your health, life, and long-term care insurance policies. Make sure everything is up to date. Nobody wants a surprise rejection when they need it most. Bonus: You’ll feel smugly responsible while sipping your eggnog. Now might be a good time to get a second plan for yourself or your spouse. NPFBA members have that option.
10. Family Budget Talk: Make It Festive, Not Fatal
Turn a family financial discussion into a holiday activity. Sit everyone down with hot cocoa and cookies to go over goals and budgets. Let your kids “help” with the calculator while you adjust for inflation and post-apocalypse grocery prices. Fun for all!
11. Celebrate Your Wins with a Family Night
After you’ve maxed, claimed, invested, donated, and saved, it’s time for a little indulgence. Gather the family for a movie night, a pizza party, or a trip to see the holiday lights. Why? Because it’s not just about numbers—it’s about who those numbers protect. And hey, you deserve a little sparkle too.
Don’t Forget to Plan for Long-Term Care
While you’re checking all these financial boxes, here’s a big one to add: long-term care planning. No one likes to think about getting older or needing help, but ignoring it now can lead to hefty costs and stress down the road. Lucky for you, the NPFBA offers long-term care coverage specifically designed for California’s firefighters, law enforcement officers, and their spouses. It’s a proactive way to protect your future, keep your finances intact, and ensure your family isn’t left scrambling if life throws a curveball. Check it out—you’ve got enough on your plate without adding financial uncertainty to the list.
Closing Thoughts
You spend your life putting out literal and figurative fires, but the end of the year is your time to reignite your financial game plan. Follow these tips, and you’ll roll into 2024 with a swagger in your step and a solid financial foundation under your boots. Just don’t forget to share the wealth of your wisdom with your fellow first responders—after all, there’s nothing more satisfying than out-smarting the system together.
