With the summer coming to an end, it's a great time to take control of your finances. The change of seasons is always a good time to assess where you are and what you are doing financially and make the necessary adjustments to reach your financial goals. You might be surprised to find that even small changes can lead to big savings. Let's see what to include in a fall financial check.
Clear the Clutter
No one wants to spend the summer filing and destroying financial records, so now is the time to fix what has been building up in recent months. The first step to a financial checkup in the fall is to collect all the financial documents in one place, then sort them and decide what to keep and what to throw away.
If you still receive paper statements, switch to paperless delivery, so you have even less paper to worry about next time. General guidelines for storage and shredding are:
Keep tax records, legal documents, warranties.
Shred invoices, statements, payment receipts, and anything else you can easily access online
Consider "cutting the cord."
If you've spent the summer streaming Netflix or Amazon Prime Video and rarely watch cable, it's time to cut the cord. Even if you're not sure you can do it, give it a try for a few months and see how you feel. The convenience of seeing exactly what you want when you want it while saving money should be enough to win you over.
Know where your money is going.
Do you spend money every month on things you don't need or use? Your fall financial check should include a checking account and credit card review for all automatic charges, such as gym memberships, monthly subscriptions, and magazine renewals; unsubscribe from anything you don't use.
Check your credit report.
When was the last time you reviewed a copy of your credit report? If you can't remember, it's time to get copies from the three major credit bureaus (Experian, Equifax, and TransUnion) and scan them for errors or inaccuracies. It's also an opportunity to see what you can do to improve your credit score.
Anticipate seasonal expenses
Believe it or not, the fall and winter holidays are approaching. Think about what you normally spend for Halloween, Thanksgiving, and the winter holidays, and start saving for them now. If you set aside a ton of cash to buy seasonal decorations, food, and gifts, it will save you from pulling out your credit card when the time comes.
Reduce commissions and recurring expenses.
Repeatable expenses are repeatable offenses if you keep paying an unnecessary bill. Every month, look through your records and remove anything you no longer use.
Do a bill review
Review your monthly bills and credit card statements to see how much your recurring expenses are. Cut down, downgrade, or cancel any service or subscription that adds little value to your life. Subscriptions can be digital (streaming, video, music, publishing) or physical (magazines, etc.). Cut the services you don't need to enable you to save some money.
How much are you paying in bank charges?
Financial institutions love to charge endless fees and will be happy to bundle their banking products to charge less or even more! The trick to knowing if you're closing a business (or going bankrupt) is to check each account and compare costs elsewhere. It's a bit of work, but it's worth it, as many of us rarely switch accounts and stay at the same institution indefinitely.
So start with your checking account, okay? Current accounts are anchored products in the sense that we dig in or never leave our mother bank. Moving a checking account can be a tedious and often difficult process, so we stay put.
Prepare for open enrollment.
Open enrollment for health care takes place every year in the fall. Whether you subscribe to Medicare, self-employed health insurance, or an employer-sponsored plan, take enough time to gather information and consider your options to find one that meets your financial and health needs. Remember that any change you make can affect your net pay, and this is the only time of year when you can change your coverage options. This is especially important if you've been through a change in your life, such as a marriage, divorce, or child, as it is likely to affect your health needs.
Make sure to check your flexible spending account balance and make sure you spend those funds before the end of the year. If you have excess funds in your flexible account, consider reducing your contribution for the next year.
Define your vacation budget
Suppose you plan to pay for gifts, travel, and other vacation expenses with the last salary of the year. In that case, it can put unnecessary strain on your finances and increase your chances of going into debt in December.
The easiest way to plan your vacation is to plan and make a list of all the events you plan to attend, such as parties, family dinners, and gift exchanges. Create a detailed list for each event, including food, gifts, decorations, and whatever else you need. Then set a limit for each category and gift on your list. Add each category with your total budget and set a date, and start saving.
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