3 Ways By Which You Can Improve Your Finances For 2015

Starting the New Year in better financial shape could be the best thing that you ever did. Especially if you haven’t been able to do this in 2014.

That said, here are 3 ways by which you can improve your finances:

#1: Look for health insurance on the exchanges

If you’re interested in buying health insurance on your own, you’ve got time until February 2015 to purchase a policy. However, if you want your coverage to begin on January 1, 2015, you’ll have to purchase it by December 15, 2014. That said, even if you’ve been happy with your plan so far, it’s still a good idea to look if your state exchange can offer you subsidies.

#2: Open a separate 401(k)

If you have income from self-employment or freelance work, it’s a good idea to open a solo 401 (k) where you can make a contribution of at least $17,500 along with 20% of your self-employment income for a total of $52,000 for this year. While you have time until April 15 to make these contributions, you have to open the account by December 31, 2014.

#3: Get more out of your charitable donations

Instead of writing checks to your favorite donation, you can invest in stocks and give it away to charity. This way, you can prevent paying capital gains taxes on any increase in value of the stocks that you currently hold. If you want to get a tax break for 2014 but still need time to decide which charity you’d like to give your money to, consider opening a donor-advised fund.