With October being financial planning month, it gives us a prime opportunity to refocus our attention on our financial well-being. This month serves as a reminder to take a step back, evaluate our financial goals, and make necessary adjustments to secure and realign our financial plan and journey. In this blog, we’ll explore why Financial Planning Month is a great time to revisit your plan and what financial planning items to focus on.
- Setting Clear Financial Goals
October presents an excellent chance to set or refine your financial goals. Whether you’re looking to build an emergency fund, pay off debt, save for retirement, or invest in your dream home, setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is essential.
- Reviewing Your Current Financial Situation
To effectively plan for your financial future, it’s crucial to have a clear understanding of your current financial situation. Review your income, expenses, debts, and investments. Take the time to create or update your budget, assess your net worth, and review the bigger picture. Understanding where you stand financially is the first step toward making informed decisions. Remember that open enrollment season is right around the corner, so evaluate your blin spots or wrk with an advisor to help spot what’s missing and where you can improve.
- Budgeting
With the holiday season just around the corner, October is the ideal time to start budgeting for holiday expenses. By planning ahead and setting a budget for gifts, travel, and entertainment, you can avoid overspending and prevent post-holiday financial stress.
- Tax Planning
As the year draws to a close, October is an excellent time to start thinking about tax planning. Work with your financial advisor in conjunction with your CPA t run tax projections and consider ideas to minimize your tax liability. Being proactive in your tax planning can lead to substantial savings when tax season arrives.
- Retirement Planning
Retirement planning is a critical aspect of financial planning. October serves as a reminder to assess your retirement savings goals and contributions. Whether you’re just starting your retirement savings journey or nearing retirement age, use this time to evaluate where your contributions are for the year and make the applicable changes.
Financial Planning Month serves as a timely reminder to take control of your financial future. By setting clear financial goals, reviewing your current financial situation, budgeting for the holidays, and addressing tax and retirement planning, you can make meaningful strides in your financial life. Consider working with a financial professional to help seamlessly approach this financial reset and evaluation. If you have any questions on how to get started, email info@shermanwealth.com.
