Tis the season when financial advisers trot out suggestions for saving money, cutting taxes and making other smart money moves for the new year. Many of the suggestions haven't changed much from this time last year, except that substantially higher inflation and interest rates give year-end planning a new urgency.

Take budgeting: It's always smart to know how your income compares against your expenses, and in an inflationary environment spending patterns can get distorted. The nation's inflation rate has eased in recent months but still stood at a lofty 7.1% over the past 12 months through November, the latest measure. Some items have seen double-digit increases such as electricity, natural gas, groceries and restaurant meals.

Pay attention to budgeting

Relatively few households create budgets, surveys have shown, but it can be a smart move now. Budgeting is a fairly easy exercise that you can tackle using spreadsheets or just a pad of paper. Remember to track all of your expenses, including those you might pay just once or twice a year such as insurance premiums or property taxes.

One way people often adjust their spending during inflationary times is by stocking up on certain items to avoid price hikes later, but that can cause its own problems.

"Such advance-buying motives can make expectations of future inflation a self-fulfilling prophecy, as accelerated buying creates further upward pressure on inflation," noted the University of Michigan in an updated survey of consumer finances.

The university has tracked inflation and consumer responses for decades but hasn't, as of yet, noticed much advance buying going on, which is good. "One of the factors that has discouraged buying in advance is the lack of supply of durables, vehicles and homes to buy," the report said. Also, consumers have begun to perceive that supply constraints are easing along with the inflation numbers, the report added.

Review and rebalance investments

Chances are good that your investment portfolio went through a lot of stress this year. At one point in 2022, stocks in the Standard & Poor's 500 index were down 25% on average before trimming losses in recent weeks. Bonds also were weak, while certificates of deposit and other stable-value investments are now paying higher yields.

Rebalancing is the concept of adjusting your portfolio, periodically, so that you maintain your desired or target mix of stocks, bonds or other assets. To cite a simple example, suppose you strive to hold 60% of your investments in stocks/stock funds and the other 40% in bonds/bond funds. If you find your mix is now closer to 50/50, following sharp stock losses, it might be wise to move some money from your bond holdings to the stock side.

It can be psychologically difficult to take chips off the table from your winners while pumping more money into holdings that have suffered big losses. Just remember that rebalancing provides a discipline for buying low and selling high. If you don't want to sell any of your winners, another way to rebalance is by directing new investment dollars or income such as dividends into your laggards.

Get a credit report — or two

Obtaining a fresh copy of your credit report is another task you should do at least once a year. The impetus isn't so much on combating inflation as it is on thwarting identity theft and maintaining borrowing capacity. Make sure the information is correct, with no surprise loans or lines of credit that some crook might have opened.

Everyone may receive up to three free credit reports a year, one from each of the main credit bureaus: Equifax, TransUnion and Experian. To obtain these at no cost, visit annualcreditreport.com. A solid credit record will help you obtain loans on good terms and might be necessary to rent an apartment or obtain an insurance policy, for example.

TransUnion offers tips for spotting red flags and reviewing other information in credit reports. For example, numerous or unfamiliar credit inquiries or accounts might hint at trouble.

Fine-tune retirement coverage

Social Security recipients will receive an 8.7% COLA, or cost-of-living adjustment, in 2023 based on inflation readings taken through this year’s third quarter, when consumer prices were running hotter than they are now.

Many people in workplace retirement plans also are seeing better benefits, such as in higher employer matching funds into 401(k) accounts. If you’re employed but not taking full advantage of these plans, now’s the time to do so.

Savings contributions, from both employees and employers, have inched higher. The employer portion has reached record highs, with companies kicking in 5.6% of pay in matching funds on average on behalf of workers, reports the Plan Sponsor Council of America in a new study. Workers contributed another 8.3% on average.

In general, employees are acting more responsibly in managing their retirement accounts, the study found. For example, only 1.9% of retirement-plan participants made taxable hardship withdrawals in 2021, the most recent year examined, and a modest 18% borrowed against their 401(k) balances. Participation in 401(k)-style plans increased last year to 89.2% of eligible workers from 88.5% in 2020.

Heighten your gift-card awareness

It’s not common to hear gift cards mentioned as a year-end money tip, but perhaps it’s time. Gift cards are increasingly popular and purchases have soared, yet many Americans aren’t using them all that well.

For example, Americans are holding onto more than $21 billion in unused cards, according to an estimate by mycreditsummit.com. And at least half of respondents to a survey conducted by the company said they have lost an unredeemed gift card at least once.

Meanwhile, the Internal Revenue Service is cautioning taxpayers about card-related scams. Crooks posing as IRS agents often contact potential victims demanding payment for a fictitious tax bill. Typically, they will demand that you purchase a gift card then reveal the card number and PIN, or personal identification number, allowing the crook to take over the card's value.

The IRS recently sent an alert reminding taxpayers that it doesn’t ask for, or accept, gift cards as payment for tax bills. Nor does the IRS call people demanding payment before notifying them first by mail.

Prepare for income-tax season

The waning weeks of the year also are a good time to check over your tax basics and make a few moves before Jan. 1, if warranted. If you itemize deductions, you might want to donate a bit more to charities now. Another option is to make an estimated tax payment if you have withheld too little in 2022. Some tax provisions adjust periodically for inflation or for other reasons, such as the standard deduction. Others don't.

If you have stocks or other holdings in taxable accounts, now also can be the time to harvest losses by selling some securities that have dropped in value. Such capital losses can shelter gains taken in the same year. If your losses exceed your gains, you can apply up to $3,000 annually in net losses against ordinary income and carry unused losses to future years.

It's still too early to file your tax return for 2022, but it can be smart to get ahead of the curve. If you usually receive a refund, you might want to file early to thwart identity thieves who might try to file in your name to steal your refund. Organizing receipts and other tax documents around this time of year can position you to get a head start.

Reach the writer at russ.wiles@arizonarepublic.com.

This article originally appeared on Arizona Republic: Budget and investing changes to consider at the end of the year