Back-to-school season is here, and you don’t have to be a student to take advantage of that feeling of renewal. This is the perfect time to open a fresh notebook, review your finances and make a plan for the rest of the year.
Review Your Year: Fall Financial Reset
Get started by taking stock of where you are right now. Look back at your spending, saving and investments from this year, and note where you might have gotten off track. Maybe you need to move some money to your emergency fund, increase retirement contributions or pull back on spending. It’s better to know where you stand now, so that you can make changes before the year ends.
Here are some resources to help you assess your budget:
Budget Like a Pro in Six Steps – Part 1
Budget Like a Pro in Six Steps – Part 2
Prepare for Upcoming Expenses
For many people, the last quarter of the year can be very expensive. From sporting events and travel to holiday shopping and end of the year bills, it’s easy to get overwhelmed.
Use this time to look ahead at upcoming expenses, set a budget, and search for deals.
If you plan on traveling, you set alerts now to get the best deal on flights and hotel costs. Sites like Kayak and Google Flights that will help you watch current rates and determine when to buy. (Just make sure you read the fine print before booking; some third party sites don’t allow you to change or cancel your plans once you’ve booked.)
You can also start to make a list of any big-ticket gifts or items you plan to buy this year, so you can keep an eye out for deals.
Get Organized for End-of-Year Tasks
Open enrollment, tax prep and end-of-the-year deadlines are right around the corner; get organized now to save yourself time (and headaches) later.
Creating an organizational system that will make all of those end-of-year tasks easier. Find spaces for important documents, receipts and forms, so you know exactly where they’ll be when you need them. Manage digital clutter by saving and sorting important emails, and get rid of documents that you no longer need.
You can also make physical and digital folders for those tasks that you know are coming up. Gather and organize the paperwork, digital files or login information that you’ll need to complete those tasks. Don’t let one misplaced document derail your progress; get a head start now, and give yourself plenty of time for unexpected tasks that might pop up.
Reduce Your Tax Bill
If you want to reduce your tax bill, there are some moves you can make now to help you out in April. Check these tasks off your list by Dec. 31st to save money on taxes:
- Donate to charity
- Contribute to pre-tax accounts like a Health Savings Account (HSA) or 401(k)
- In your brokerage account, sell your losses to offset capital gains, and cut down on your tax liability.
- Pay estimated taxes on any big bonuses or buyouts
Prepare Your Fall Financial Checklist
You still have plenty of time to work on healthy financial habits and working toward your goals this year. For more ideas about managing your end-of-the-year checklist, check out these posts:
How to Prepare for Open Enrollment
Organizing Your Fall Finances
The Year End Financial Data You Need
About Your Richest Life
At Your Richest Life, Katie Brewer, CFP®, believes you too should have access to financial resources and fee-only financial planning. For more information on the services offered, contact Katie today.