Set aside cash for an emergency fund (at least six months of living expenses). Pay down, or pay off, outstanding debt, especially high interest credit cards. Consider making extra payments toward student loans, auto loans and even your mortgage, depending on the interest rate on the debt. Review your retirement plan contributions to determine if you can contribute more to your (or a spousal) IRA account or retirement plan this current tax year.
Many times, one spouse wants to keep the house in a divorce, yet houses come with their own set of issues. There are property taxes to pay, insurance, upkeep, lawns to mow and possibly snow to shovel. On the positive side, the house over several years, could appreciate substantially. Then again, one cannot simply take a window out of their house and go buy groceries with it.
Over the years I’ve asked my CPA the same question that you have probably asked yours: “What can I do to lower my tax bill?” After the close of the tax year the answer is unfortunately uniform: “Not much.”
It's a good problem to have: Let's say you saved too much for college for your child in a 529 plan.
Although discussing the topic of money with your kids can be uncomfortable, it is a necessary step in their development. I've said in the past that I came out of high school knowing what Sine, Cosine, and Tangent were but if not for my parents, wouldn't know how to balance a checkbook. Few schools (if any) teach courses on how to handle money the right way. Without learning money management skills at home, your kids are going to be in for a few nasty surprises when they get older.
Survivor planning is an important consideration in relation to maximizing your Social Security benefits. It is worth taking time to understand how Social Security survivor benefits will work for your personal family situation.