By - September 3, 2024
Categories: Bookkeeping, General
The turning of the seasons is a great time to fall into good habits, financial habits to be exactly. Autumn is an ideal time to reassess your financial situation and implement new strategies that will carry you through the end of the year and beyond. We believe that with the right approach, you can “fall” into good financial habits that will set you up for success.
Here are some practical tips to guide you through this autumn season:
1. Review and Refresh Your Budget
The beginning of quarter four is a great time to take a look at your budget. The holidays are just around the corner, and for many, that means an increase in spending. Review your income and expenses from the past few months to see if you need to adjust any categories.
Tip: Consider using a budgeting app or software to keep track of your spending in real time. This will help you stay on top of your finances and make necessary adjustments before the holiday rush begins.
2. Prepare for Holiday Expenses
With the new season often comes a time of increased spending with holidays such as Thanksgiving, Halloween, and Christmas coming up. It’s essential to plan ahead to avoid financial stress. Start by setting aside a specific amount each week to fund these upcoming expenses. This can help you avoid relying on credit cards and racking up debt during the holiday season.
Tip: Create a holiday-specific savings account and automate transfers from your checking account to this fund. By spreading out your saving efforts over the next few months, you’ll be better prepared for holiday expenses.
3. Evaluate Your Tax Situation
Autumn is the perfect time to review your tax situation and make adjustments if needed. If you’re a small business owner, freelancer, or self-employed, you should look at your income for the year so far and determine if you need to make estimated tax payments. Even if you’re a regular employee, it’s wise to check your withholdings to ensure you’re on track and won’t face a big tax bill come April.
Tip: Schedule a meeting with your accountant or bookkeeper to go over your tax strategy. Taking proactive steps now could save you from headaches later.
4. Reassess Your Financial Goals
Did you set financial goals at the start of the year? This would be a great time to revisit them. Are you on track to meet them? Maybe you aimed to pay off debt, save for a down payment on a home or build an emergency fund. Take stock of your progress and determine whether you need to adjust your plans.
Tip: Set short-term goals to help push through the end of the year. For example, challenge yourself to save an extra $500 before January or pay off one credit card balance.
5. Take Advantage of End-of-Year Sales
Year End sales are popular among many businesses. This is an ideal time to take advantage of them, especially if you’re a business owner looking to make investments in equipment or supplies. Many companies offer year-end deals to clear out inventory, so be on the lookout for discounts. This can also be a great time to make charitable donations or invest in assets that may offer tax benefits.
Tip: Keep an eye on Black Friday and Cyber Monday deals for both personal and business-related purchases. Just be sure to stay within your budget and avoid impulse buying.
6. Check in on Your Retirement Accounts
When was the last time you checked in on your retirement accounts? Are you maxing out your 401(k) or IRA contributions? If not, consider upping your contributions for the rest of the year. The contributions you make to these accounts can reduce your taxable income and set you up for a more secure financial future.
Tip: If your employer offers a matching contribution, try to contribute enough to take full advantage of that benefit. It’s essentially free money that helps boost your retirement savings.
7. Protect Your Assets
As you transition into autumn, it’s important to ensure that your assets are protected. Review your insurance policies—whether it’s health, auto, home, or life insurance—to ensure you have adequate coverage. This is particularly crucial if you’ve experienced any major life changes, such as getting married, having a child, or purchasing a new home.
Tip: Autumn is often the season for open enrollment, so take advantage of this time to make necessary updates to your insurance policies.
Embrace Financial Change this Fall
Autumn is all about change and preparing for what’s ahead, making it an ideal time to reset your financial habits. By refreshing your budget, planning for holiday expenses, and checking in on your long-term financial goals, you can end the year strong and set yourself up for a successful new year.
Let’s fall into good habits together!
