As the year winds down and holidays approach, the last thing you probably want to think about is your finances. But fall is the perfect time to do a financial checkup—you may get a clearer sense of what you can afford regarding holiday spending and feel more prepared as you head into the new year. Ready to tackle your finances? Keep reading for tips on getting your money in order this fall.
1. Check in with yourself
Before you begin, take a second to check in with yourself—how are you feeling about this process? Have you had any major life changes since you last did a financial checkup? For many people, money can be a source of a lot of anxiety. It consistently ranks among the top issues in the American Psychological Association’s annual “Stress in America” study.
Periodically reviewing your finances can be a good step toward staying organized, identifying potential concerns, and reducing uncertainty—and it may help you avoid a financial mistake. Noting your feelings can help you identify any new stressors you may want to address as you revisit your financial goals and budget in the next steps.
2. Revisit your goals
After checking in with yourself, a helpful place to start with your financial checkup is by reviewing any goals you previously set. If you didn’t set goals, it’s not too late to begin, and your financial goals may change over time.
For example, you may have been saving up for a summer vacation that’s come and gone. With short-term goals like these, it can be useful to compare how much you saved with how much you needed. If you have extra money, you might put that towards a new goal or roll it into your next vacation fund. If you overspent, examine the categories where you spent the most. From there, you can decide whether to budget differently on your next trip or find ways to travel on a budget.
For goals like emergency funds, review how much you’ve saved towards your goal to determine if you may need to adjust your savings strategy or, if you’ve reached your savings target, whether you want to keep adding to it or shift focus to another goal, like paying down student loan debt.
3. Review your budget
This is also a good time to check in on your budget and review your spending. While you may have hit that vacation savings goal, it’s possible you’re overspending in other categories. But that doesn’t automatically mean you have to cut back—a review of your spending could help you spot expenses that no longer fit your priorities, such as a monthly subscription you forgot about. Cutting unnecessary expenses may free up money for what you actually want, all while staying in budget.
You may also discover some seasonal trends to your spending. Are you hitting the farmers market in the spring and summer and then ordering in all winter long? No judgement! Take that extra grocery money and move it to your takeout budget.
Remember, your budget isn’t meant to restrict you. It can be a tool to better understand your income and your spending so you can create a thoughtful plan for your money.
4. Adjust your plan
Now that you’ve reviewed your goals and your spending, it may be time to make your plan for moving forward. As you do, one helpful reminder is to focus on your immediate needs, priorities, and goals. Financial anxiety can sometimes come from uncertainty, so instead of focusing only on global issues outside of your control, think about the financial challenges you’re facing right now. For some people, your financial plan may look like the one you had at the start of the year, with a few minor adjustments to short-term goals, like saving for holiday spending instead of a vacation.
If you feel like you may need a major overhaul though, start by listing the things you want to accomplish, including any existing goals from earlier this year, plus any new ones. Getting it all out may help you identify possible long- and short-term strategies and decide how you want to prioritize them. If it feels overwhelming to try this alone, you may also consider working with financial professional for more guidance based on your circumstances.
5. Treat yourself
Congratulations, you’ve completed your fall financial checkup! Celebrating these steps, along with milestones like hitting your goals, can help you stay motivated while making your finances feel more fun and manageable. And most importantly, remember to keep going. It can be frustrating if you feel like you’re not reaching your goals as quickly as you hoped. Progress and consistency can make a difference over time, so keep adjusting as needed—and consider budgeting for celebratory treats when they fit your plan!
Key takeaways:
- Reviewing your finances periodically may help you stay organized, reach your goals, and reduce uncertainty.
- Your financial goals can change over time, so it may be helpful to review and adjust them periodically.
We hope this checkup helps you feel more financially prepared this fall. Have you hit a savings goal this year? Share it in the comments!
