Your August Financial Checklist: 8 Money Moves to Make Before Fall

ByAshley Hours Categories Financial Literacy

August tends to feel like a transition month. Summer is winding down, vacations are wrapping up, kids are heading back to school, and before we know it, the final stretch of the year will be here. That makes August a great time for a financial reset.

You don’t need to completely overhaul your financial plan. Instead, use this month to check in on a few important areas, make adjustments where necessary, and get organized before the busy fall and holiday seasons arrive. Here are eight items to put on your August financial checklist.

Remember the financial goals you set at the beginning of the year? Now is a good time to revisit them. Take a look at where you stand with goals such as:

  • Building or replenishing your emergency fund
  • Paying down debt
  • Saving for a home
  • Increasing retirement contributions
  • Funding education
  • Saving for a wedding, vacation, or other major purchase
  • Investing outside of your retirement accounts

If you’ve fallen behind, don’t let that stop you from reaching your goal. There are still several months left in the year to make progress. You may need to adjust your monthly savings target or reconsider your timeline. If you’ve already reached a goal, consider where those next dollars should go.

Next, review your budget for the year. Summer can be expensive. Between travel, weddings, camps, dining out, entertainment, and spontaneous weekend plans, spending can creep higher than expected. So, review your last two or three months of transactions and compare them with your normal spending.

Pay particular attention to recurring expenses and subscriptions. Small monthly charges can easily accumulate without you noticing. The goal isn’t to feel guilty about enjoying your summer. It’s to understand where your money went and make sure your spending heading into fall reflects your current priorities.

Now that you’ve completed your spending look back, it’s time to prepare for the rest of the year ahead. For families, August often comes with an entirely different category of back to school expenses. There may also be tuition, childcare, after-school activities, sports, tutoring, transportation, clothing, technology, and other costs. Rather than treating these expenses as surprises, incorporate them into your monthly cash-flow plan now. And don’t forget to look even further ahead: Holiday travel, gifts, weddings, home projects, insurance premiums, charitable giving, year-end taxes, vacations; these items often compound towards the back half of the year, so identify these early on so you can best prepare.

This can also be a good opportunity to review education savings. If funding future education is one of your family’s goals, check your current contributions and determine whether they still make sense within your broader financial plan.

Now that the budget is tightened up, let’s look to retirement. With more than half the year behind us, review how much you’ve contributed to your retirement accounts so far. If you participate in an employer-sponsored retirement plan, check your contribution rate and make sure you’re taking full advantage of any employer match available to you. If your income has increased or your cash flow is stronger than expected, you might also consider increasing your contribution percentage for the remainder of the year. Small increases can make a meaningful difference over time, particularly when those additional dollars have years to compound.

While retirement is a huge financial priority to check in on, don’t forget about your other investments. August is also a good time for a portfolio check-in, taking a look at all your investment accounts, reviewing allocation and adjusting if necessary.

Here are some questions you can ask yourself:

  • Does my portfolio still reflect my goals?
  • Has my time horizon changed?
  • Has my risk tolerance changed?
  • Has market performance caused my asset allocation to drift?
  • Am I holding too much cash?
  • Have there been major changes to my income or financial situation?

Investment decisions should generally be driven by your financial plan rather than short-term market movements. If your portfolio has moved significantly away from its intended allocation, it may be worth discussing whether rebalancing is appropriate.

Another topic that is extremely important for overall planning in the next few weeks is tax. December may feel far away, but waiting until the final weeks of the year can limit your planning options. Depending on your financial situation, this could include reviewing investment gains and losses, charitable giving plans, retirement contributions, income changes, estimated tax payments, or other planning opportunities.

This is especially important if you’ve experienced a major financial change during the year, such as a new job, promotion, bonus, business income, stock compensation, home purchase, marriage, or other significant event. Tax planning is often more effective when it’s proactive rather than reactive.

Next up, re-visit your emergency fund. Your emergency savings should change as your life changes. If your monthly expenses have increased significantly, the amount you previously considered an adequate emergency fund may no longer provide the same cushion. Review your current cash reserves and consider whether they appropriately reflect your household expenses, job stability, family situation, and other financial obligations. If you had to use some of your emergency savings earlier this year, create a plan to gradually replenish it.

Lastly, use August as a financial reset. Good financial planning isn’t about making one perfect decision. It’s about regularly checking in, adjusting as life changes, and making intentional decisions with your money. Review your spending. Check your savings. Revisit your investments and retirement contributions. Start thinking about taxes. And most importantly, make sure the decisions you’re making today still align with where you want to go.

At Sherman Wealth, we help individuals and families build financial plans that evolve alongside their lives. If it’s been a while since you’ve reviewed your financial picture, or you’re not sure what you should be focusing on before year-end, we’re here to help. Email info@shermanwealth.com with any questions or book a complimentary intro call here.