The days are getting shorter, and the nights a bit longer and a lot cooler. You’ve put away the pool toys and resigned yourself to the fact that the time to work in another summer vacation, may have passed you by.
Hopefully, you spent summer enjoying every weekend and taking advantage of every opportunity for fun, sun, surf, sand, and whatever else the season might bring. While we can take solace in the fact that Summer will, once again come back around and lay its bounty at our feet, right now it’s time to prep for Fall. Here are a few thoughts to consider when organizing your fall financial bucket list.
New Season, New Priorities
Summertime means spontaneity—lake trips, vacations with the kids (or without), outdoor dining, consuming great novels from a shady beach chair, and more. But a new season means new budget priorities. Take the time to assess the things you need to be ready to handle and make sure you assign the necessary resources to each priority. Do you need to budget for college tuition and expenses, back-to-school supplies for younger kids, outdoor clean-ups, or winter recreation funds for ski and snowboarding trips? Be sure you’re spending mindfully and responsibly and eliminate things that seem trivial or frivolous.
Whatever your priorities, make sure your budget reflects both what they are and how you’re planning to pay for them.
Take a Close Look at Your Savings Goals
Now that you’ve examined your priorities for fall spending, take a look at your available resources and what you’re setting aside in savings each month. You may want to move things around or increase the amount you’re saving with each paycheck to be sure you have the cash you need as anticipated expenses arise.
Make Sure Your Money is Working as Hard as You Want it to
Take the time to take a look at any funds you may have invested in a high-yield account, term-share, personal investment account, or employer sponsored retirement plan. Are you consistently setting money aside each month? Can you afford to increase the percentage going into your 401K? Is it time to look into a brokerage account or high yield checking and savings accounts to help increase your personal wealth through investment growth? The more you can set aside, the faster your money grows.
Review Your Debts and Repayment Plans
Fall is a great time to check-in on any debts to make sure you’re repaying them as quickly as you plan to. If you have high-interest credit card debt, work on a plan to tackle it. And as always, be sure you’re using your credit accounts responsibly.
If you have student loans, personal loans, home loans, auto loans, or other forms of debt, look into ways to consolidate or optimize payments—even a small increase in each payment can reduce the total you repay over time by thousands of dollars. Check your credit report to see where you stand in terms of credit score, usage and repayment or credit checks and then work to remediate any areas that might be bringing your credit score down.
The Holidays Will be Here Before You Know it
Summer may be barely over, but time stops for no one. Start thinking about upcoming holiday expenses and ways to save before you have to hit the panic button and overheat your credit card accounts.
Make a list of the things you’re likely to spend money on—buying gifts, hosting holiday parties, or a trip to visit parents or out of town family and friends. The expenses can mount quickly. For example, if anticipate you’ll need around $1,000 to cover holiday spending, look for ways to cut back this fall and set that money aside in a separate holiday account. Maybe eat out or treat yourself to restaurant delivery less often, cancel some of the streaming services you’re not using, or putting off any home improvements or vehicle upgrades until spring. Don’t forget to account for credit card reward points, loyalty programs, or cashback dollars that you can put toward holiday spending too.
Start Planning for Tax Season
Minimizing the impact of taxes and maximizing potential tax refunds can have a big impact on your financial situation. Be sure you know where you can find the information necessary to prepare your return regardless of whether you’re doing it yourself of using a professional tax preparer or accounting firm. Start a file where you can store receipts for deductible expenses, income from all sources, and anything else that can give you and edge when it comes time to file.
Food for Thought
The change of season serves as a helpful reminder to evaluate your financial life and make the right moves to close out the year and set yourself up for success in the year to come. Reflect on the steps you’ve taken to advance your security and financial fitness this year and take action on any of those boxes you’ve left unchecked.